ServiceNow Reports First Quarter 2021 Financial Results

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SANTA CLARA, Calif.–(BUSINESS WIRE)–ServiceNow (NYSE: NOW), the main digital workflow firm making work, work higher for folks, at present introduced monetary outcomes for its first quarter ended March 31, 2021, with subscription revenues of $1,293 million in Q1 2021, representing 30% year-over-year progress, 26% adjusted for fixed foreign money.

As of March 31, 2021, present remaining efficiency obligations (“cRPO”), contract income that can be acknowledged as income within the subsequent 12 months, was $four.four billion, representing 33% year-over-year progress, 29% adjusted for fixed foreign money. The corporate now has 1,146 complete clients with greater than $1 million in annual contract worth, representing 23% year-over-year progress in clients.

“Our excellent begin to 2021 is rooted in our relentless focus to make the world of labor, work higher for folks,” mentioned Invoice McDermott, ServiceNow president and CEO. “Because the main platform for digital transformation, our empathy for purchasers conjures up our steady innovation. Over the previous 18 months, we doubled the options and performance in our releases to resolve the world’s most urgent challenges. We’re humbled to assist turning tens of millions of vaccines into vaccinations globally. There is no such thing as a restrict to the alternatives forward as we try to turn out to be the defining enterprise software program firm of the 21st century.”

ServiceNow CFO Gina Mastantuono mentioned, “On the heels of an amazing 2020, the staff continued to execute properly and delivered one other sturdy quarter of out-performance. We’re centered, disciplined, and dedicated to serving to our clients succeed. Each C-suite chief desires to create nice experiences for his or her staff and their clients, and ServiceNow is delivering. The Now Platform affords the pace, flexibility, and innovation corporations want. We’ve sturdy momentum on our technique to turning into a $10 billion income firm.”

Through the quarter, ServiceNow delivered the Now Platform Quebec launch with new ranges of innovation to assist companies thrive in a brand new period of labor. This included the launch of ServiceNow’s new Creator Workflow with low-code instruments that put software growth into the arms of “citizen builders.” ServiceNow launched Vaccine Administration Administration to assist flip vaccines into vaccinations by orchestrating the vaccine administration course of: distributing, administering, and monitoring vaccines. The acquisition of Intellibot will allow ServiceNow to ship an unmatched clever workflow automation answer tying collectively RPA, AI, machine studying, and course of mining native to the Now Platform. ServiceNow additionally just lately launched its International Influence Report, which incorporates its environmental, social, and governance initiatives for creating significant influence on the planet.

First Quarter 2021 GAAP and Non-GAAP Outcomes:

The next desk summarizes our monetary outcomes for the primary quarter 2021:

First Quarter 2021

GAAP Outcomes

First Quarter 2021 Non-GAAP Outcomes(1)

Quantity

($ tens of millions)

Yr/Yr

Progress (%)

Quantity

($ tens of millions)

Yr/Yr

Progress (%)

Adjusted

Quantity

($ tens of millions)(2)

Adjusted

Yr/Yr

Progress (%)

Subscription revenues

$1,293

30%

$1,256

26%

Skilled companies and different revenues

$67

31%

$65

27%

Complete revenues

$1,360

30%

$1,321

26%

Subscription billings

$1,365

29%

$1,315

25%

Skilled companies and different billings

$70

46%

$68

42%

Complete billings

$1,435

30%

$1,383

25%

Quantity

($ billions)

Yr/Yr

Progress (%)

Adjusted

Quantity

($ billions)(2)

Adjusted

Yr/Yr

Progress (%)

cRPO

$four.four

33%

$four.three

29%

RPO

$eight.eight

34%

$eight.6

30%

Quantity

($ tens of millions)

Margin (%)

Quantity

($ tens of millions)

Margin (%)

Subscription gross revenue

$1,065

82%

$1,106

86%

Skilled companies and different gross revenue (loss)

($four)

(6%)

$9

14%

Complete gross revenue

$1,061

78%

$1,115

82%

Earnings from operations

$97

7%

$372

27%

Web money supplied by working actions

$727

53%

Free money stream

$627

46%

Quantity

($ tens of millions)

Earnings per

Primary/Diluted

Share ($)

Quantity

($ tens of millions)

Earnings per

Primary/Diluted

Share ($)

Web earnings

$82

$zero.42/ $zero.41

$306

$1.55/ $1.52

(1)

We report non-GAAP monetary measures along with, and never as an alternative to, or superior to, monetary measures calculated in accordance with GAAP. See the part entitled “Assertion Relating to Use of Non-GAAP Monetary Measures” for an evidence of non-GAAP measures, and the desk entitled “GAAP to Non-GAAP Reconciliation” for a reconciliation of GAAP to non-GAAP measures.

(2)

Non-GAAP adjusted subscription revenues, skilled companies and different revenues, complete revenues and professional companies and different billings, cRPO and RPO are adjusted for fixed foreign money. Non-GAAP adjusted subscription billings and complete billings are adjusted for fixed foreign money and fixed billings length. See the part entitled “Assertion Relating to Use of Non-GAAP Monetary Measures” for an evidence of non-GAAP measures, and the desk entitled “GAAP to Non-GAAP Reconciliation” for a reconciliation of GAAP to non-GAAP measures.

Word: Numbers rounded for presentation functions.

Monetary Outlook

ServiceNow will present forward-looking steering in reference to this quarterly announcement on its earnings convention name and webcast.

Convention Name Particulars

The convention name will start at 2 p.m. Pacific Time (22:00 GMT) on April 28, 2021. events might take heed to the decision by dialing (833) 513‑0567 (Passcode: 6380767), or if exterior North America, by dialing (236) 714‑2186 (Passcode: 6380767). People might entry the reside teleconference from this webcast hyperlink:

https://event.on24.com/wcc/r/3079908/98C398329F784744CCE4E95CB0BFA353

An audio replay of the convention name and webcast can be out there two hours after its completion and can be accessible for 30 days. To listen to the replay, events might go to the investor relations part of the ServiceNow web site or dial (800) 585‑8367 (Passcode: 6380767), or if exterior North America, by dialing (416) 621‑4642 (Passcode: 6380767).

Investor Presentation Particulars

An investor presentation offering extra info, together with forward-looking steering, and evaluation could be discovered at http://investors.servicenow.com.

Monetary Analyst Day

ServiceNow will host its Monetary Analyst Day nearly on Monday, Might 10th. The occasion will function shows by senior executives, who will present updates on the corporate’s company and product technique, financials and buyer momentum. A webcast can be out there the day of the occasion at http://investors.servicenow.com.

Occasion Particulars:

Might 10, 2021 from 10:00 am ‑ 12:30 pm Pacific Time

Assertion Relating to Use of Non-GAAP Monetary Measures

We report the next non-GAAP monetary measures along with, and never as an alternative to, or superior to, monetary measures calculated in accordance with GAAP.

  • Adjusted revenues. We current revenues adjusted for fixed foreign money to supply a framework for assessing how our enterprise carried out excluding the impact of overseas foreign money charge fluctuations. To current this info, present interval outcomes for entities reporting in currencies aside from U.S. (“USD”) are transformed into USD on the common change charges in impact in the course of the comparability interval (for Q1 2020, the typical change charges in impact for our main currencies had been 1 USD to 1.10 Euros and 1 USD to 1.28 British Pound Sterling (“GBP”), moderately than the precise common change charges in impact in the course of the present interval (for Q1 2021, the typical change charges in impact for our main currencies had been 1 USD to 1.21 Euros and 1 USD to 1.38 GBP). We consider the presentation of revenues adjusted for fixed foreign money facilitates the comparability of revenues year-over-year.
  • Billings and Adjusted billings. We outline subscription billings, skilled companies and different billings, and complete billings because the relevant income plus the relevant change in deferred income, unbilled receivables and buyer deposits as introduced or derived from the assertion of money flows. We alter billings for fixed foreign money, as described above, and for fixed length by changing the portion of multi-year billings in extra of twelve months in the course of the present interval with the portion of multi-year billings in extra of twelve months in the course of the comparability interval. We consider these changes facilitate higher comparability in our billings info year-over-year. We consider billings is one indicator of the efficiency of our enterprise.
  • Adjusted remaining efficiency obligations and present remaining efficiency obligations. We current cRPO and remaining efficiency obligations (“RPO”) and associated progress charges adjusted for fixed foreign money, as described above, to supply a framework for assessing how our enterprise carried out. We consider the presentation of cRPO and RPO and associated progress charges adjusted for fixed foreign money facilitates the comparability of cRPO and RPO year-over-year, respectively.
  • Gross revenue, Earnings from operations, Web earnings and Web earnings per share – diluted. Our non-GAAP presentation of gross revenue, earnings from operations, and internet earnings measures exclude sure non-cash or non-recurring objects, together with stock-based compensation expense, amortization of debt low cost and issuance prices associated to our convertible senior notes, loss on early notice conversions, amortization of bought intangibles, authorized settlements, enterprise mixture and different associated prices, and the associated earnings tax impact of those changes. The non-GAAP weighted-average shares used to compute our non-GAAP internet earnings per share – diluted excludes the dilutive impact of the in-the-money portion of convertible senior notes as they’re lined by our notice hedges, and contains the dilutive impact of time-based inventory awards, the dilutive impact of warrants and the possibly dilutive impact of our inventory awards with efficiency circumstances not but happy at forecasted attainment ranges to the extent we consider it’s possible that the efficiency situation can be met. We consider these changes present helpful supplemental info to traders and facilitates the evaluation of our working outcomes and comparability of working outcomes throughout reporting intervals.
  • Free money stream. Free money stream is outlined as internet money supplied by (utilized in) working actions plus money paid for authorized settlements and repayments of convertible senior notes attributable to debt low cost, decreased by purchases of property and tools. Free money stream margin is calculated as free money stream as a share of complete revenues. We consider info relating to free money stream and free money stream margin gives helpful info to traders as a result of it’s an indicator of the energy and efficiency of our enterprise operations.

Our presentation of non-GAAP monetary measures will not be akin to related measures utilized by different corporations. We encourage traders to fastidiously contemplate our outcomes below GAAP, in addition to our supplemental non-GAAP info and the reconciliation between these shows, to extra absolutely perceive our enterprise. Please see the tables included on the finish of this launch for the reconciliation of GAAP and non-GAAP outcomes.

Use of Ahead-Trying Statements

This launch incorporates “forward-looking statements” relating to our efficiency. Ahead-looking statements are topic to identified and unknown dangers and uncertainties and are based mostly on doubtlessly inaccurate assumptions that would trigger precise outcomes to vary materially from these anticipated or implied by the forward-looking statements. If any such dangers or uncertainties materialize or if any of the assumptions show incorrect, our outcomes might differ materially from the outcomes expressed or implied by the forward-looking statements we make.

Components that will trigger precise outcomes to vary materially from these in any forward-looking statements embrace: (i) the continued influence and length of COVID-19 on our enterprise, future monetary efficiency and international financial circumstances together with the effectiveness, extent and length of mitigation efforts akin to “shelter in place”, availability of vaccinations and related directives; (ii) our capability to compete efficiently towards current and new opponents, (iii) our capability to adjust to evolving privateness legal guidelines, information switch restrictions, and different overseas and home requirements associated to information and the Web, (iv) our capability to foretell, put together for and reply promptly to quickly evolving technological, market and buyer developments, (v) errors, interruptions, delays, or safety breaches in or of our service or information facilities, (vi) our capability to develop our enterprise, together with changing remaining efficiency obligations into income, including and retaining clients, promoting extra subscriptions to current clients, promoting to bigger enterprises, authorities and controlled organizations with advanced gross sales cycles and certification processes, and coming into new geographies and markets, (vii) our capability to develop and achieve buyer acceptance of latest and improved services and products, together with these acquired by way of strategic transactions, and (viii) materials modifications within the worth of foreign currency echange relative to the U.S. Greenback. Moreover, these forward-looking statements contain danger, uncertainties and assumptions, together with these associated to the continued impacts of COVID-19 on our enterprise, future monetary efficiency and international financial circumstances. Many of those assumptions relate to issues which are past our management and altering quickly, together with, however not restricted to, the timeframes for and severity of social distancing and different mitigation necessities, the timing of headwinds from COVID-19, the continued influence of COVID-19 on new or current clients’ buying choices and the size of our gross sales cycles, renewal timing or billings phrases, notably for purchasers in sure industries extremely affected by COVID-19. Vital variation from the assumptions underlying our forward-looking statements might trigger our precise outcomes to range, and the influence could possibly be vital.

Additional info on these and different elements that would have an effect on our monetary outcomes are included in our Type 10-Okay filed for the 12 months ended December 31, 2020 and in different filings we make with the Securities and Trade Fee infrequently, together with our Type 10-Q that can be filed for the quarter ended March 31, 2021.

We undertake no obligation, and don’t intend, to replace these forward-looking statements, to evaluate or verify analysts’ expectations, or to supply interim reviews or updates on the progress of the present monetary quarter.

About ServiceNow

ServiceNow (NYSE: NOW) is making the world of labor, work higher for folks. Our cloud-based platform and options ship digital workflows that create nice experiences and unlock productiveness for workers and the enterprise. For extra info, go to: www.servicenow.com.

© 2021 ServiceNow, Inc. All rights reserved. ServiceNow, the ServiceNow emblem, Now, and different ServiceNow marks are emblems and/or registered emblems of ServiceNow, Inc. in the US and/or different nations. Different firm names, product names, and logos could also be emblems of the respective corporations with which they’re related.

ServiceNow, Inc.

Condensed Consolidated Statements of Operations

(in tens of millions, besides per share information)

(unaudited)

Three Months Ended

March 31, 2021

March 31, 2020

Revenues:

Subscription

$

1,293

$

995

Skilled companies and different

67

51

Complete revenues

1,360

1,zero46

Price of revenues (1):

Subscription

228

160

Skilled companies and different

71

63

Complete price of revenues

299

223

Gross revenue

1,061

823

Working bills (1):

Gross sales and advertising

524

441

Analysis and growth

314

227

Normal and administrative

126

106

Complete working bills

964

774

Earnings from operations

97

49

Curiosity expense

(7)

(9)

Different earnings, internet

9

eight

Earnings earlier than earnings taxes

99

48

Provision for earnings taxes

17

Web earnings

$

82

$

48

Web earnings per share – fundamental

$

zero.42

$

zero.25

Web earnings per share – diluted

$

zero.41

$

zero.24

Weighted-average shares used to compute internet earnings per share – fundamental

197

190

Weighted-average shares used to compute internet earnings per share – diluted

202

200

(1) Consists of stock-based compensation as follows:

Three Months Ended

March 31, 2021

March 31, 2020

Price of revenues:

Subscription

$

29

$

22

Skilled companies and different

13

12

Working bills:

Gross sales and advertising

93

70

Analysis and growth

88

59

Normal and administrative

33

26

ServiceNow, Inc.

Condensed Consolidated Steadiness Sheets

(in tens of millions)

(unaudited)

March 31, 2021

December 31, 2020

Property

Present property:

Money and money equivalents

$

1,821

$

1,677

Quick-term investments

1,635

1,415

Accounts receivable, internet

645

1,009

Present portion of deferred commissions

241

229

Pay as you go bills and different present property

182

192

Complete present property

four,524

four,522

Deferred commissions, much less present portion

471

444

Lengthy-term investments

1,348

1,468

Property and tools, internet

693

660

Working lease right-of-use property

455

454

Intangible property, internet

221

153

Goodwill

361

241

Deferred tax property

643

673

Different property

106

100

Complete property

$

eight,822

$

eight,715

Liabilities and Stockholders’ Fairness

Present liabilities:

Accounts payable

$

109

$

34

Accrued bills and different present liabilities

484

668

Present portion of deferred income

2,994

2,963

Present portion of working lease liabilities

77

72

Complete present liabilities

three,664

three,737

Deferred income, much less present portion

50

45

Working lease liabilities, much less present portion

420

423

Lengthy-term debt, internet

1,611

1,640

Different long-term liabilities

40

36

Stockholders’ fairness

three,037

2,834

Complete liabilities and stockholders’ fairness

$

eight,822

$

eight,715

ServiceNow, Inc.

Condensed Consolidated Statements of Money Flows

(in tens of millions)

(unaudited)

Three Months Ended

March 31, 2021

March 31, 2020

Money flows from working actions:

Web earnings

$

82

$

48

Changes to reconcile internet earnings to internet money supplied by working actions:

Depreciation and amortization

106

76

Amortization of deferred commissions

66

49

Amortization of debt low cost and issuance prices

2

9

Inventory-based compensation

256

188

Deferred earnings taxes

1

(2

)

Repayments of convertible senior notes attributable to debt low cost

(7

)

Different

15

three

Adjustments in working property and liabilities, internet of impact of enterprise combos:

Accounts receivable

354

209

Deferred commissions

(114

)

(71

)

Pay as you go bills and different property

(three

)

(20

)

Accounts payable

89

21

Deferred income

75

60

Accrued bills and different liabilities

(195

)

(78

)

Web money supplied by working actions

727

492

Money flows from investing actions:

Purchases of property and tools

(107

)

(83

)

Enterprise combos, internet of money acquired

(225

)

(83

)

Purchases of investments

(644

)

(528

)

Gross sales and maturities of investments

532

313

Different

7

(four

)

Web money utilized in investing actions

(437

)

(385

)

Money flows from financing actions:

Repayments of convertible senior notes attributable to principal

(28

)

(2

)

Proceeds from worker inventory plans

95

67

Taxes paid associated to internet share settlement of fairness awards

(191

)

(126

)

Web money utilized in financing actions

(124

)

(61

)

Overseas foreign money impact on money, money equivalents and restricted money

(18

)

(11

)

Web enhance in money, money equivalents and restricted money

148

35

Money, money equivalents and restricted money at starting of interval

1,679

778

Money, money equivalents and restricted money at finish of interval

$

1,827

$

813

ServiceNow, Inc.

GAAP to Non-GAAP Reconciliation

(in tens of millions, besides cRPO, RPO and per share information)

(unaudited)

Three Months Ended

March 31, 2021

March 31, 2020

Progress Charges

Subscription revenues:

GAAP subscription revenues

$

1,293

$

995

30%

Results of overseas foreign money charge fluctuations

(37

)

Non-GAAP adjusted subscription revenues(1)

$

1,256

26%

Skilled companies and different revenues:

GAAP skilled companies and different revenues

$

67

$

51

31%

Results of overseas foreign money charge fluctuations

(2

)

Non-GAAP adjusted skilled service and different revenues(1)

$

65

27%

Complete revenues:

GAAP complete revenues

$

1,360

$

1,zero46

30%

Results of overseas foreign money charge fluctuations

(39

)

Non-GAAP adjusted complete revenues(1)

$

1,321

26%

cRPO (in billions):

GAAP cRPO

$

four.four

$

three.three

33%

Results of overseas foreign money charge fluctuations

(zero.1

)

Non-GAAP adjusted cRPO(1)

$

four.three

29%

RPO (in billions):

GAAP RPO

$

eight.eight

$

6.6

34%

Results of overseas foreign money charge fluctuations

(zero.2

)

Non-GAAP adjusted RPO(1)

$

eight.6

30%

Subscription billings:

GAAP subscription revenues

$

1,293

$

995

30%

Change in subscription deferred income, unbilled receivables and buyer deposits

72

60

Non-GAAP subscription billings

1,365

1,zero55

29%

Results of overseas foreign money charge fluctuations

(39

)

Results of fluctuations in billings length

(11

)

Non-GAAP adjusted subscription billings(2)

$

1,315

25%

Skilled companies and different billings:

GAAP skilled companies and different revenues

$

67

$

51

32%

Change in skilled companies and different deferred income

three

(three

)

Non-GAAP skilled companies and different billings

70

48

46%

Results of overseas foreign money charge fluctuations

(2

)

Non-GAAP adjusted skilled companies and different billings(2)

$

68

42%

Complete billings:

GAAP complete revenues

$

1,360

$

1,zero46

30%

Change in complete deferred income, unbilled receivables and buyer deposits

75

57

Non-GAAP complete billings

1,435

1,103

30%

Results of overseas foreign money charge fluctuations

(41

)

Results of fluctuations in billings length

(11

)

Non-GAAP adjusted complete billings(2)

$

1,383

25%

Price of revenues:

GAAP subscription price of revenues

$

228

$

160

Inventory-based compensation

(29

)

(22

)

Amortization of bought intangibles

(12

)

(7

)

Non-GAAP subscription price of revenues

$

187

$

131

GAAP skilled companies and different price of revenues

$

71

$

63

Inventory-based compensation

(13

)

(12

)

Non-GAAP skilled companies and different price of revenues

$

58

$

51

Gross revenue:

GAAP subscription gross revenue

$

1,065

$

835

Inventory-based compensation

29

22

Amortization of bought intangibles

12

7

Non-GAAP subscription gross revenue

$

1,106

$

864

GAAP skilled companies and different gross loss

$

(four

)

$

(12

)

Inventory-based compensation

13

12

Non-GAAP skilled companies and different gross revenue

$

9

$

GAAP gross revenue

$

1,061

$

823

Inventory-based compensation

42

34

Amortization of bought intangibles

12

7

Non-GAAP gross revenue

$

1,115

$

864

Gross margin:

GAAP subscription gross margin

82

%

84

%

Inventory-based compensation as % of subscription revenues

2

%

2

%

Amortization of bought intangibles as % of subscription revenues

1

%

1

%

Non-GAAP subscription gross margin

86

%

87

%

GAAP skilled companies and different gross margin

(6

%)

(23

%)

Inventory-based compensation as % of professional companies and different revenues

19

%

23

%

Non-GAAP skilled companies and different gross margin

14

%

zero

%

GAAP gross margin

78

%

79

%

Inventory-based compensation as % of complete revenues

three

%

three

%

Amortization of bought intangibles as % of complete revenues

1

%

1

%

Non-GAAP gross margin

82

%

83

%

Working bills:

GAAP gross sales and advertising bills

$

524

$

441

Inventory-based compensation

(93

)

(70

)

Non-GAAP gross sales and advertising bills

$

431

$

371

GAAP analysis and growth bills

$

314

$

227

Inventory-based compensation

(88

)

(59

)

Amortization of bought intangibles

(1

)

Non-GAAP analysis and growth bills

$

225

$

168

GAAP basic and administrative bills

$

126

$

106

Inventory-based compensation

(33

)

(26

)

Amortization of bought intangibles

(four

)

(three

)

Enterprise mixture and different associated prices

(2

)

(three

)

Non-GAAP basic and administrative bills

$

87

$

74

GAAP complete working bills

$

964

$

774

Inventory-based compensation

(214

)

(155

)

Amortization of bought intangibles

(5

)

(three

)

Enterprise mixture and different associated prices

(2

)

(three

)

Non-GAAP complete working bills

$

743

$

613

Earnings from operations:

GAAP earnings from operations

$

97

$

49

Inventory-based compensation

256

188

Amortization of bought intangibles

17

10

Enterprise mixture and different associated prices

2

three

Non-GAAP earnings from operations

$

372

$

250

Working margin:

GAAP working margin

7

%

5

%

Inventory-based compensation as % of complete revenues

19

%

18

%

Amortization of bought intangibles as % of complete revenues

1

%

1

%

Enterprise mixture and different associated prices as % of complete revenues

zero

%

zero

%

Non-GAAP working margin

27

%

24

%

Web earnings:

GAAP internet earnings

$

82

$

48

Inventory-based compensation

256

188

Amortization of bought intangibles

17

10

Enterprise mixture and different associated prices

2

three

Amortization of debt low cost and issuance prices

2

9

Different

2

Earnings tax expense results associated to the above changes

(55

)

Earnings tax profit from the discharge of a valuation allowance on the deferred tax property

(51

)

Non-GAAP internet earnings

$

306

$

207

Web earnings per share – fundamental and diluted:

GAAP internet earnings per share – fundamental

$

zero.42

$

zero.25

GAAP internet earnings per share – diluted

$

zero.41

$

zero.24

Non-GAAP internet earnings per share – fundamental

$

1.55

$

1.09

Non-GAAP internet earnings per share – diluted

$

1.52

$

1.05

GAAP weighted-average shares used to compute internet earnings per share – fundamental

197

190

GAAP weighted-average shares used to compute internet earnings per share – diluted

202

200

Results of in-the-money portion of convertible senior notes(three)

(1

)

(three

)

Non-GAAP weighted-average shares used to compute internet earnings per share – diluted

201

197

Free money stream:

GAAP internet money supplied by working actions

$

727

$

492

Purchases of property and tools

(107

)

(83

)

Repayments of convertible senior notes attributable to debt low cost

7

Non-GAAP free money stream

$

627

$

409

Free money stream margin:

GAAP internet money supplied by working actions as % of complete revenues

53

%

47

%

Purchases of property and tools as % of complete revenues

(eight

%)

(eight

%)

Repayments of convertible senior notes attributable to debt low cost as % of complete revenues

1

%

%

Non-GAAP free money stream margin

46

%

39

%

(1)

Adjusted revenues, cRPO, RPO and the corresponding progress charges are derived by making use of the typical change charges in impact in the course of the comparability interval moderately than the precise common change charges in impact in the course of the present interval.

(2)

Adjusted billings and the corresponding progress charges are derived by making use of the typical change charges in impact in the course of the comparability interval moderately than the precise common change charges in impact in the course of the present interval, and by changing the portion of multi-year billings in extra of twelve months in the course of the present interval with the portion of multi-year billings in extra of twelve months in the course of the comparability interval.

(three)

Results of dilutive time-based inventory awards, in-the-money portion of convertible senior notes and warrants are included within the GAAP weighted-average diluted shares in intervals the place we’ve GAAP internet earnings. We exclude the in-the-money portion of convertible senior notes for non-GAAP weighted-average diluted shares as they’re lined by our notice hedges. We embrace inventory awards with efficiency circumstances not but happy for non-GAAP weighted common diluted shares at forecasted attainment ranges to the extent we consider it’s possible that the efficiency situation can be met.

Word: Numbers rounded for presentation functions.

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