Market Overview

ServiceNow Reports Second Quarter 2019 Financial Results

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  • Subscription revenues of $781 million in Q2 2019, representing 33% year-over-year growth
  • 39 transactions over $1 million in net new annual contract value in Q2 2019
  • 766 total customers with over $1 million in annual contract value, representing 33% year-over-year growth

ServiceNow (NYSE:NOW) today announced financial results for its second quarter ended June 30, 2019, with subscription revenues of $781 million in Q2 2019, representing 33% year-over-year growth.

ServiceNow, the leading digital workflow company making work, work better for people, serves almost 75% of Fortune 500 companies. During the quarter, ServiceNow closed 39 transactions with more than $1 million in net new annual contract value (ACV). The company now has 766 total customers with more than $1 million in ACV, representing 33% year-over-year growth in customers.

"We delivered another strong quarter, continuing our focus on driving customer success and enabling digital transformation as a strategic partner to the world's largest enterprises," said John Donahoe, ServiceNow president and chief executive officer. "Technology should make life at work as simple, easy and convenient as it has made our lives at home. That's what we're enabling with our customers through the power of our Now Platform, product portfolio and native mobile capabilities."

"Total remaining performance obligations at the end of June 2019 was $5.4 billion, representing 35% year-over-year growth," said Michael Scarpelli, ServiceNow chief financial officer. "This strong growth reflects the continued strength of our product portfolio and our focus on developing strategic relationships with our customers. We now have 98 customers with more than $5 million in ACV, representing 72% year-over-year growth in customers."

Second Quarter 2019 GAAP and NonGAAP Results:

The following table summarizes our financial results for the second quarter 2019:

 

Second Quarter 2019

GAAP Results

 

Second Quarter 2019 Non-GAAP Results(1)

 

Amount

($ millions)

Year/Year

Growth (%)

 

Amount

($ millions)

Year/Year

Growth (%)

Adjusted

Amount

($ millions)(2)

Adjusted

Year/Year

Growth (%)

Subscription revenues

$781.0

33%

 

 

 

$797.6

36%

Professional services and other revenues

$52.9

16%

 

 

 

$54.4

19%

Total revenues

$833.9

32%

 

 

 

$851.9

35%

 

 

 

 

 

 

 

 

Subscription billings

 

 

 

$816.9

32%

$827.8

34%

Professional services and other billings

 

 

 

$54.1

10%

$55.6

13%

Total billings

 

 

 

$871.0

31%

$883.4

33%

 

 

 

 

 

 

 

 

 

Amount

($ millions)

Margin (%)

 

Amount

($ millions)

Margin (%)

 

 

Subscription gross profit

$645.5

83%

 

$670.2

86%

 

 

Professional services and other gross profit (loss)

($9.8)

(18%)

 

$1.2

2%

 

 

Total gross profit

$635.8

76%

 

$671.4

81%

 

 

Income (loss) from operations

($27.0)

(3%)

 

$153.0

18%

 

 

Net cash provided by operating activities

$243.7

29%

 

 

 

 

 

Free cash flow

 

 

 

$193.8

23%

 

 

 

 

 

 

 

 

 

 

 

Amount

($ millions)

Earnings per

Basic/Diluted

Share ($)

 

Amount

($ millions)

Earnings per

Basic/Diluted

Share ($)

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