ServiceNow, Inc. reported significant financial performance for the third quarter and the nine months ended September 30, 2024, reflecting robust growth in revenues and profitability compared to the previous fiscal period. Total revenues for Q3 2024 reached $2,797 million, a 22% increase from $2,288 million in Q3 2023. For the nine months ended September 30, 2024, total revenues were $8,027 million, up 23% from $6,534 million in the same period last year. Subscription revenues, which accounted for 78% of total revenues, also saw a 23% increase, rising to $2,715 million in Q3 2024 from $2,216 million in Q3 2023, and to $7,780 million for the nine months, compared to $6,315 million in 2023.
Gross profit for Q3 2024 was $2,213 million, up from $1,792 million in Q3 2023, maintaining a gross profit margin of 79%. However, net income for the nine months ended September 30, 2024, was $1,041 million, a decrease from $1,436 million in the same period of 2023, primarily due to a significant income tax benefit recorded in the prior year. The net income for Q3 2024 was $432 million, compared to $242 million in Q3 2023, with net income per share increasing to $2.09 from $1.18.
ServiceNow's total current assets as of September 30, 2024, were $7,696 million, slightly down from $7,777 million at the end of 2023. However, total assets increased to $18,434 million from $17,387 million. Stockholders' equity rose to $9,290 million, up from $7,628 million at the end of 2023, driven by increases in additional paid-in capital and retained earnings.
The company made strategic acquisitions totaling $81 million during the nine months, including the acquisition of G2K Group GmbH for $465 million, aimed at enhancing its Now Platform with IoT technology. Operating expenses increased, with sales and marketing expenses rising by 18% in Q3 2024 compared to the previous year, reflecting the company's investment in growth initiatives.
ServiceNow's cash flow from operating activities for the nine months ended September 30, 2024, was $2,632 million, a 47% increase from $1,793 million in the same period of 2023. The company also reported a renewal rate of 98% for subscription services, indicating strong customer retention.
Overall, ServiceNow's financial results demonstrate a solid growth trajectory, supported by increased subscription revenues and strategic investments, despite a decline in net income due to prior year tax benefits.
About ServiceNow, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.