NYSE$NOW

ServiceNow Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

ServiceNow's Q4 2020 earnings exceeded expectations, driven by strong subscription revenue growth and customer adoption across its IT, Employee, and Customer workflows.

ServiceNow reported strong Q4 2020 results, with subscription revenues growing 32% year-over-year. The company closed 89 transactions with more than $1 million in net new ACV and now has 1,093 total customers with more than $1 million in ACV. ServiceNow beat expectations and is focused on becoming the defining enterprise software company of the 21st century.

  • Subscription revenues reached $1,184 million, a 32% increase year-over-year.
  • Subscription billings totaled $1,828 million, reflecting a 41% year-over-year growth.
  • Closed 89 transactions with more than $1 million in net new annual contract value (ACV).
  • The company now has 1,093 total customers with more than $1 million in ACV, representing 23% year-over-year growth in customers.

Headline financials

Total Revenue

$1.25B

Previous: $952M+31.3%
EPS (adj)

$1.17

Previous: $0.96+21.9%
Transactions over $1M ACV

1.1K

Previous: 886+23.4%
Capital Expenditures

$134M

Previous: $79M+69.6%
Free Cash Flow

$552M

Previous: $342M+61.2%
Net Income

$16.6M

Previous: $599M-97.2%
Operating Income

$17.9M

Previous: $28.5M-37.1%
Gross Profit

$971M

Previous: $740M+31.2%
Cash & Equivalents

$1.68B

Previous: $776M+116.1%
Total Assets

$8.72B

Previous: $6.02B+44.7%
Stock-Based Comp

$245M

Previous: $170M+44.3%

Revenue & EPS history

ServiceNow · Revenue · Quarterly

$1.25B

Q4 2020+31.3%vs Q4 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

ServiceNow · $1.25B total across 2 segments · Q4 2020

  • Subscription revenues
    $1.18B
  • Professional services and other
    $66.1M

Forward guidance

ServiceNow will provide forward-looking guidance in connection with this quarterly announcement on its earnings conference call and webcast, and it will introduce current remaining performance obligations (“cRPO”) as a new guidance metric for Q1 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+2.7%

Avg return

Earnings day

+2.8%

Avg return

5 days after

+5.9%

Avg return

30 days after

68%

40 / 59 earnings

Positive

+19.0%

Q4 2018

Best reaction

-18.5%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.2%-12.2%-0.9%
Q4 2025-5.9%-15.3%-16.7%
Q3 2025-0.7%-2.6%-10.9%
Q2 2025+1.9%+4.6%+9.2%
Q1 2025+15.5%+16.0%+23.6%
Q4 2024-11.4%-11.7%-18.7%
Q3 2024+4.2%+2.9%+15.5%
Q2 2024+8.3%+4.4%+8.2%
Q1 2024-3.3%-2.7%-0.3%
Q4 2023+1.8%+4.5%+2.3%
Q3 2023-0.6%+2.6%+21.6%
Q2 2023-3.9%+0.1%-3.2%
Q1 2023+2.7%+1.8%+21.5%
Q4 2022+4.4%-0.2%-4.0%
Q3 2022+10.4%+11.7%+8.1%
Q2 2022+3.2%+7.3%+5.2%
Q1 2022+10.5%+6.3%+4.4%
Q4 2021+6.8%+18.3%+17.2%
Q3 2021+1.6%+0.8%-4.0%
Q2 2021+0.7%+0.4%+8.6%
Q1 2021-10.2%-12.9%-15.8%
Q4 2020+4.1%+4.9%+0.2%
Q3 2020+2.2%-4.8%+5.5%
Q2 2020-0.8%+1.1%+12.1%
Q1 2020+18.8%+19.8%+31.1%
Q4 2019+8.8%+9.3%+3.8%
Q3 2019+4.1%+7.2%+22.6%
Q2 2019-1.8%-1.8%-9.6%
Q1 2019+7.0%+11.6%+10.4%
Q4 2018+19.0%+21.8%+31.8%
Q3 2018-5.0%-9.7%-11.6%
Q2 2018+4.0%-3.3%+4.7%
Q1 2018+2.8%+3.4%+10.0%
Q4 2017+4.2%+0.5%+13.7%
Q3 2017+0.2%-0.7%+1.9%
Q2 2017+2.6%+2.5%+2.6%
Q1 2017+4.5%+5.2%+17.5%
Q4 2016+6.6%+7.3%+9.3%
Q3 2016+6.5%+10.2%+10.0%
Q2 2016+4.1%+2.4%+0.2%
Q1 2016+16.6%
Q4 2015-18.5%
Q3 2015+4.3%
Q2 2015+3.1%
Q1 2015-9.2%
Q4 2014+8.8%
Q3 2014+6.7%
Q2 2014-1.5%
Q1 2014-9.7%
Q2 2011-3.1%
Q4 2011-3.1%
Q4 2013+11.3%
Q3 2013+7.9%
Q2 2013+7.4%
Q1 2013+16.2%
Q4 2010+0.6%
Q4 2012-8.2%
Q3 2012-2.7%
Q2 2012+7.7%
Q1 2012
Q1 2011
Q3 2011

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