Executive Summary
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ServiceNow delivered a solid QQ1 2025 with revenue of $3.089B, up 18.63% year over year and 4.43% quarter over quarter. The company posted a gross margin of approximately 78.9% and an operating margin near 14.6%, supported by disciplined cost management and continued investment in R&D and go-to-market activities. Net income of $460M and diluted EPS of $2.20, alongside free cash flow (FCF) of about $1.472B, underscores the company’s standout cash generation in a subscription-driven model. The balance sheet remains highly liquid, with net cash positioning and a substantial deferred revenue base, signaling durable customer commitments and visibility. Absent explicit forward guidance in the provided materials, the QQ1 print suggests ServiceNow remains well-positioned to leverage its Now platform for continued automation across enterprises, albeit at a premium valuation relative to some peers.
Key Performance Indicators
3.09B
QoQ: 4.43% | YoY: 18.63%
2.44B
78.92% margin
QoQ: 4.77% | YoY: 16.99%
451.00M
QoQ: 20.59% | YoY: 35.84%
460.00M
QoQ: 19.79% | YoY: 32.56%
2.22
QoQ: 19.35% | YoY: 31.36%
Revenue: $3.0888B; YoY growth: 18.63%; QoQ growth: 4.43%; Gross Profit: $2.437B; Gross Margin: 78.92%; Operating Income: $451M; Operating Margin: 14.60%; Net Income: $460M; Net Margin: 14.90%; EBITDA: $721M; EBITDA Margin: 23.35%; EPS (diluted): $2.20; Shares (diluted): 209.371M; Free Cash Flow: $1.472B; FCF Margin: 47.6%; Operating Cash Flow: $1.678B; Capex: $-205M; Cash at End of Period: $3.378B; Cash & Short-Term Investments: $6.597B; Total Debt: $2.399B; Net Debt: -$0.97B (net cash); Deferred Revenue (Current): $6.737B; Deferred Revenue (Non-Current): $117M; Current Ratio: 1.123; Quick Ratio: 1.123; Cash Ratio: 0.408; ROA: 2.19%; ROE: 4.54%; ROCE: 3.55%; P/E: 89.49x; P/S: 53.32x; P/BV: 16.24x; EV/Revenue: 227.03x; Free Cash Flow per Share: $7.12; Operating Cash Flow per Share: $8.11; Cash per Share: $31.90.
Metric
Value
YoY Change
QoQ Change
Revenue
3.09B
18.63%
4.43%
Gross Profit
2.44B
16.99%
4.77%
Operating Income
451.00M
35.84%
20.59%
Net Income
460.00M
32.56%
19.79%
EPS
2.22
31.36%
19.35%
Key Financial Ratios
78.90%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
14.60%
Operating margin is moderate, room for improvement in cost management
14.90%
Net profit margin is healthy and competitive within industry standards
2.19%
Return on assets suggests inefficient capital allocation
4.54%
Return on equity suggests inefficient capital allocation
1.12
Current ratio meets minimum requirements but limited cushion
0.24
Debt-to-equity shows conservative leverage and low financial risk
89.49x
Very high P/E indicates aggressive growth expectations, higher risk
16.24x
Very high premium suggests asset-light business model or lofty expectations
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