ServiceNow, Inc. Q1 FY2024 results: revenue $2.6 billion, up 24.2% on the year

ServiceNow, Inc. (NOW) reported revenue of $2.6 billion for Q1 FY2024, the quarter ended 31 March 2024, up 24.2% on the same quarter a year earlier. Net income was $347 million, up 131.3% on the year, and diluted earnings per share $1.67. The figures are the company's own, from the 10-Q it filed with the SEC on 6 May 2024.

Revenue$2.6 billionup 24.2%

Net income$347 millionup 131.3%

Diluted EPS$1.67

QuarterQ1 FY2024ended 31 March 2024

The quarter, against the one before and a year earlier

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Revenue	2,603	2,437	n/a	n/a
Cost of revenue	520	516	n/a	n/a
Gross profit	2,083	1,921	n/a	n/a
Gross margin	80.0%	78.8%	n/a
Research and development	606	562	n/a	n/a
Operating income	332	270	n/a	n/a
Operating margin	12.8%	11.1%	n/a
Pre-tax income	425	347	n/a	n/a
Income tax	78.0	52.0	n/a	n/a
Effective tax rate	18.4%	15.0%	n/a
Net income	347	295	n/a	n/a
Net margin	13.3%	12.1%	n/a
Diluted EPS	$1.67	$1.44	n/a	n/a

$ million except per share. Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Operating cash flow	1,341	1,605	n/a	n/a
Capital expenditure	135	261	n/a	n/a
Free cash flow	1,206	1,344	n/a	n/a
Free cash flow margin	46.3%	55.1%	n/a
Depreciation and amortisation	130	154	n/a	n/a
Share-based compensation	422	413	n/a	n/a
Buybacks	175	256	n/a	n/a
Diluted shares, weighted	208m	206m	n/a	n/a
Shares outstanding at period end	205m	205m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Total assets	17,544	17,387	n/a	n/a
Cash and equivalents	2,056	1,897	n/a	n/a
Receivables	1,306	2,036	n/a	n/a
Goodwill	1,224	1,231	n/a	n/a
Operating lease liabilities	693	707	n/a	n/a
Shareholders' equity	8,107	7,628	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	2,288	2,437	2,603	2,627	2,797	2,957	3,088	3,215	3,407	3,568	3,770	3,987
Cost of revenue	496	516	520	552	584	631	651	724	774	834	940	1,169
Gross profit	1,792	1,921	2,083	2,075	2,213	2,326	2,437	2,491	2,633	2,734	2,830	2,818
Gross margin	78%	79%	80%	79%	79%	79%	79%	77%	77%	77%	75%	71%
R&D	549	562	606	643	626	668	703	734	750	773	823	915
Operating income	231	270	332	240	418	374	451	358	572	443	503	162
Operating margin	10%	11%	13%	9%	15%	13%	15%	11%	17%	12%	13%	4%
Interest expense	n/a	n/a	n/a	n/a	n/a	n/a	n/a	6.0	n/a	n/a	n/a	66.0
Pre-tax income	299	347	425	334	516	463	555	471	694	541	673	438
Tax rate	19%	15%	18%	22%	16%	17%	17%	18%	28%	26%	30%	32%
Net income	242	295	347	262	432	384	460	385	502	401	469	298
Net margin	11%	12%	13%	10%	15%	13%	15%	12%	15%	11%	12%	7%
Diluted EPS	$1.17	$1.44	$1.67	$1.26	$2.07	$1.84	$2.20	$1.84	$2.40	n/a	$0.45	$0.29
Operating cash flow	311	1,605	1,341	620	671	1,635	1,677	716	813	2,238	1,670	587
Capital expenditure	136	261	135	262	202	253	205	190	235	238	141	114
Free cash flow	175	1,344	1,206	358	469	1,382	1,472	526	578	2,000	1,529	473
Buybacks	282	256	175	0.0	225	296	298	361	584	597	2,225	0.0
Shares outstanding	205m	205m	205m	206m	206m	206m	207m	208m	208m	1,047m	1,031m	1,034m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 31 March 2024, filed 6 May 2024, accession 0001373715-24-000169: the filing on EDGAR. All of ServiceNow, Inc.'s filings: EDGAR company page.

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