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ServiceNow (NOW) reported Q4 EPS of $2.28, $0.26 better than the analyst estimate of $2.02. Revenue for the quarter came in at $2.03 billion versus the consensus estimate of $1.94 billion.
Financial Outlook
Our guidance includes GAAP and non-GAAP financial measures. The non-GAAP growth rates for subscription revenues and cRPO are only adjusted for constant currency to provide better visibility into the underlying business trends.
The following table summarizes our guidance for the first quarter 2023:
| First Quarter 2023 | First Quarter 2023 | ||||
| Amount |
| Year/Year |
| Constant Currency | |
Subscription revenues | $1,990 - $2,000 | 22% - 22.5% | 25% - 25.5% | |||
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| |||
cRPO |
| 21% | 24% | |||
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| |||
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| Margin (%) | |||
Income from operations |
|
| 24% | |||
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|
|
| |||
|
| Amount |
| |||
Weighted-average shares used to compute diluted net income per share |
| 204 |
| |||
(1) | We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Guidance” for a reconciliation of GAAP to non-GAAP measures. | |
(2) | Guidance for GAAP subscription revenues and GAAP subscription revenue and cRPO growth rate is based on the 31-day average of foreign exchange rates for December 2022 for entities reporting in currencies other than U.S. Dollars. | |
The following table summarizes our guidance for the full-year 2023:
| Full-Year 2023 | Full-Year 2023 | ||||
| Amount | Year/Year | Constant Currency | |||
Subscription revenues | $8,440 - $8,500 | 22.5% - 23.5% | 22.5% - 23.5% | |||
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| |||
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| Margin (%) | |||
Subscription gross profit |
|
| 84% | |||
Income from operations |
|
| 26% | |||
Free cash flow |
|
| 30% | |||
|
|
|
| |||
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| Amount |
| |||
Weighted-average shares used to compute diluted net income per share |
| 206 |
| |||
(1) | We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Guidance” for a reconciliation of GAAP to non-GAAP measures. | |
(2) | GAAP subscription revenues and related growth rate for the future quarters included in our full-year 2023 guidance are based on the 31-day average of foreign exchange rates for December 2022 for entities reporting in currencies other than U.S. Dollars. | |
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| Note: Numbers are rounded for presentation purposes and may not foot. | ||