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Also traded in: Germany

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt No Debt
NOW's Cash to Debt is ranked higher than
79% of the 1886 Companies
in the Global Information Technology Services industry.

( Industry Median: 10.32 vs. NOW: No Debt )
Ranked among companies with meaningful Cash to Debt only.
NOW' s Cash to Debt Range Over the Past 10 Years
Min: 1.48  Med: No Debt Max: No Debt
Current: No Debt
Equity to Asset 0.19
NOW's Equity to Asset is ranked lower than
91% of the 1738 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.60 vs. NOW: 0.19 )
Ranked among companies with meaningful Equity to Asset only.
NOW' s Equity to Asset Range Over the Past 10 Years
Min: -0.22  Med: 0.31 Max: 0.51
Current: 0.19
-0.22
0.51
F-Score: 5
Z-Score: 4.49
M-Score: -3.72
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 3/10

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industry
vs
history
Operating margin (%) -36.12
NOW's Operating margin (%) is ranked lower than
86% of the 1823 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.77 vs. NOW: -36.12 )
Ranked among companies with meaningful Operating margin (%) only.
NOW' s Operating margin (%) Range Over the Past 10 Years
Min: -65.08  Med: -16.08 Max: 11.4
Current: -36.12
-65.08
11.4
Net-margin (%) -38.64
NOW's Net-margin (%) is ranked lower than
85% of the 1823 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.18 vs. NOW: -38.64 )
Ranked among companies with meaningful Net-margin (%) only.
NOW' s Net-margin (%) Range Over the Past 10 Years
Min: -68.56  Med: -18.55 Max: 10.61
Current: -38.64
-68.56
10.61
ROE (%) -106.13
NOW's ROE (%) is ranked lower than
93% of the 1779 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.57 vs. NOW: -106.13 )
Ranked among companies with meaningful ROE (%) only.
NOW' s ROE (%) Range Over the Past 10 Years
Min: -106.13  Med: -40.29 Max: -23.12
Current: -106.13
-106.13
-23.12
ROA (%) -26.76
NOW's ROA (%) is ranked lower than
84% of the 1887 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.71 vs. NOW: -26.76 )
Ranked among companies with meaningful ROA (%) only.
NOW' s ROA (%) Range Over the Past 10 Years
Min: -57.83  Med: -12.51 Max: 12.28
Current: -26.76
-57.83
12.28
ROC (Joel Greenblatt) (%) -293.11
NOW's ROC (Joel Greenblatt) (%) is ranked lower than
85% of the 1851 Companies
in the Global Information Technology Services industry.

( Industry Median: 21.72 vs. NOW: -293.11 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
NOW' s ROC (Joel Greenblatt) (%) Range Over the Past 10 Years
Min: -1660.72  Med: -137.59 Max: 189.16
Current: -293.11
-1660.72
189.16
Revenue Growth (3Y)(%) 25.10
NOW's Revenue Growth (3Y)(%) is ranked higher than
88% of the 1446 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.90 vs. NOW: 25.10 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
NOW' s Revenue Growth (3Y)(%) Range Over the Past 10 Years
Min: 0  Med: 12.5 Max: 25.1
Current: 25.1
0
25.1
» NOW's 10-Y Financials

Financials (Next Earnings Date: Est. 2016-10-21)


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow
Oprt. Cash Flow & Net Income

» Details

Guru Trades

Q3 2015

NOW Guru Trades in Q3 2015

Ron Baron 67,089 sh (New)
Paul Tudor Jones 29,852 sh (+210.44%)
Ken Fisher 16,907 sh (+10.50%)
RS Investment Management 24,200 sh (unchged)
Pioneer Investments 71,256 sh (-15.78%)
» More
Q4 2015

NOW Guru Trades in Q4 2015

Steven Cohen 103,400 sh (New)
John Burbank 49,770 sh (New)
Pioneer Investments 83,753 sh (+17.54%)
Ron Baron 73,264 sh (+9.20%)
Ken Fisher 17,694 sh (+4.65%)
RS Investment Management Sold Out
Paul Tudor Jones 14,995 sh (-49.77%)
» More
Q1 2016

NOW Guru Trades in Q1 2016

Manning & Napier Advisors, Inc 5,395,730 sh (New)
Dodge & Cox 6,525 sh (New)
Ron Baron 118,362 sh (+61.56%)
Ken Fisher 19,572 sh (+10.61%)
Pioneer Investments 88,321 sh (+5.45%)
John Burbank Sold Out
Steven Cohen Sold Out
Paul Tudor Jones 11,995 sh (-20.01%)
» More
Q2 2016

NOW Guru Trades in Q2 2016

Frank Sands 89,000 sh (New)
RS Investment Management 16,270 sh (New)
Louis Moore Bacon 65,000 sh (New)
John Burbank 249,780 sh (New)
Jim Simons 119,500 sh (New)
Pioneer Investments 134,833 sh (+52.66%)
Ken Fisher 19,572 sh (unchged)
Dodge & Cox Sold Out
Paul Tudor Jones Sold Out
Manning & Napier Advisors, Inc 5,242,350 sh (-2.84%)
Ron Baron 105,181 sh (-11.14%)
» More
» Details

Insider Trades

Latest Guru Trades with NOW

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Business Description

Industry: Application Software » Information Technology Services
Compare:OTCPK:FJTSY, OTCPK:AEXAY, NYSE:XRX, NYSE:GIB, OTCPK:NTDTY, OTCPK:CGEMY, OTCPK:NRILY, NYSE:IT, NAS:SABR, NAS:CDW, OTCPK:NIPNF, NYSE:CSC, OTCPK:TSYHY, NYSE:NCR, NYSE:CSRA, OTCPK:CMSQF, NAS:SYNT, OTCPK:AMADY, NYSE:RAX, NYSE:EPAM » details
Traded in other countries:4S0.Germany,
ServiceNow Inc is a provider of cloud-based solutions that define, structure, manage and automate services across the enterprise. Its services include a suite of applications built on proprietary platform.

ServiceNow Inc was incorporated as Glidesoft, Inc. in California in June 2004 and in May 2012, the Company reincorporated into Delaware as ServiceNow, Inc. The Company along with its subsidiaries is a provider of cloud-based services to automate enterprise IT operations. The services include a suite of applications built on proprietary platform that automates workflow and integrates related business processes. It helps to transform IT organizations from reactive, manual and task-oriented, to pro-active, automated and service-oriented organizations. It offers service under a Software-as-a-Service, or SaaS, business model. The customers of the Company include customers that operate in a variety of industries, including financial services, consumer products, IT services, health care and technology. Its competitors include BMC Software, Inc., CA, Inc., Hewlett-Packard Company and International Business Machines Corporation.

Guru Investment Theses on ServiceNow Inc

Baron Funds Comments on ServiceNow Inc. - May 06, 2016

ServiceNow, Inc. (NYSE:NOW) is a cloud based platform that allows customers to streamline workloads within different verticals of the organization. Originally, the company offered solutions that streamline workflows within the IT Service Management (ITSM), but continuously expanded its offering to other verticals like IT Operation Management (ITOM), Customer Service, Security, HR, Financials and Platform As A Service (PaaS). During 2015, the company was going through internal and external reorganization processes that impacted the internal sales organization and shifted a portion of NOW’s business towards its partners. Though these changes in the company are expected, as the company grows beyond $1 billion in sales, it had a negative impact on billings growth. We believed that the market misunderstood the billings update, its limited long-term impact and added to our position. After better than expected Q1, the stock reacted positively, and we expect a strong year as the sales organization stabilizes. We believe the company is taking the right steps to allow itself to continue its longterm growth towards management’s $4 billion revenue goal, as it expands beyond its original ITSM market and invests in its ecosystem of system integrators, distributors and developers.



From Baron Opportunity Fund first quarter 2016 commentary.







Check out Ron Baron latest stock trades

Baron Funds Comments on ServiceNow Inc. - Nov 10, 2015

During the quarter, the Fund initiated a position in ServiceNow, Inc. (NYSE:NOW), a Software as a Service (SaaS) company that allows customers to manage and automate IT operations. The company has leveraged its superior architecture and product flexibility to rapidly increase its market share within IT Service Management, and it already counts 25% of the Global 2000 as customers. We believe that ServiceNow’s newly introduced products, its outstanding brand recognition and its customers’ need to enhance productivity should allow the company to successfully increase its share within the larger IT Operation Management market. The company’s average contract value within its existing customers grew by 40% last year alone. We believe the company already serves an addressable market of $15 billion annually, which is more than 15 times larger than its current size. We believe that opportunity will continue to expand as ServiceNow introduces new products to service adjacent markets. ServiceNow’s growth is supported by a secular trend of IT spend shifting from legacy on premise solutions towards SaaS offerings as IT environments are becoming increasingly complex. The company has high levels of recurring revenues and generates high customer retention rates of approximately 97%.



From Baron Opportunity Fund's third quarter 2015 letter.



Check out Ron Baron latest stock trades

Top Ranked Articles about ServiceNow Inc

Manning & Napier Buys Stake in ServiceNow Company has no debt with increased revenue growth, free cash flow growth and gross profits over the previous 6 years
Manning & Napier Advisors Inc. purchased a 5,395,730-share stake of ServiceNow Inc. (NYSE:NOW) in the first quarter. Read more...
Baron Funds Comments on ServiceNow Inc. Guru stock highlight
ServiceNow, Inc. (NYSE:NOW) is a cloud based platform that allows customers to streamline workloads within different verticals of the organization. Originally, the company offered solutions that streamline workflows within the IT Service Management (ITSM), but continuously expanded its offering to other verticals like IT Operation Management (ITOM), Customer Service, Security, HR, Financials and Platform As A Service (PaaS). During 2015, the company was going through internal and external reorganization processes that impacted the internal sales organization and shifted a portion of NOW’s business towards its partners. Though these changes in the company are expected, as the company grows beyond $1 billion in sales, it had a negative impact on billings growth. We believed that the market misunderstood the billings update, its limited long-term impact and added to our position. After better than expected Q1, the stock reacted positively, and we expect a strong year as the sales organization stabilizes. We believe the company is taking the right steps to allow itself to continue its longterm growth towards management’s $4 billion revenue goal, as it expands beyond its original ITSM Read more...
Baron Funds Comments on ServiceNow Inc. Guru stock highlight
During the quarter, the Fund initiated a position in ServiceNow, Inc. (NYSE:NOW), a Software as a Service (SaaS) company that allows customers to manage and automate IT operations. The company has leveraged its superior architecture and product flexibility to rapidly increase its market share within IT Service Management, and it already counts 25% of the Global 2000 as customers. We believe that ServiceNow’s newly introduced products, its outstanding brand recognition and its customers’ need to enhance productivity should allow the company to successfully increase its share within the larger IT Operation Management market. The company’s average contract value within its existing customers grew by 40% last year alone. We believe the company already serves an addressable market of $15 billion annually, which is more than 15 times larger than its current size. We believe that opportunity will continue to expand as ServiceNow introduces new products to service adjacent markets. ServiceNow’s growth is supported by a secular trend of IT spend shifting from legacy on premise solutions towards SaaS offerings as IT environments are becoming increasingly complex. The company Read more...

Ratios

vs
industry
vs
history
Forward P/E 108.70
NOW's Forward P/E is ranked lower than
96% of the 286 Companies
in the Global Information Technology Services industry.

( Industry Median: 21.14 vs. NOW: 108.70 )
Ranked among companies with meaningful Forward P/E only.
N/A
P/B 37.11
NOW's P/B is ranked lower than
99% of the 1688 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.73 vs. NOW: 37.11 )
Ranked among companies with meaningful P/B only.
NOW' s P/B Range Over the Past 10 Years
Min: 14.21  Med: 23.11 Max: 39.37
Current: 37.11
14.21
39.37
P/S 9.76
NOW's P/S is ranked lower than
87% of the 1763 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.11 vs. NOW: 9.76 )
Ranked among companies with meaningful P/S only.
NOW' s P/S Range Over the Past 10 Years
Min: 4.99  Med: 13.65 Max: 21.95
Current: 9.76
4.99
21.95
POCF 111.71
NOW's POCF is ranked lower than
95% of the 812 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.32 vs. NOW: 111.71 )
Ranked among companies with meaningful POCF only.
NOW' s POCF Range Over the Past 10 Years
Min: 22.97  Med: 62.16 Max: 115.77
Current: 111.71
22.97
115.77
Current Ratio 1.29
NOW's Current Ratio is ranked lower than
72% of the 1716 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.95 vs. NOW: 1.29 )
Ranked among companies with meaningful Current Ratio only.
NOW' s Current Ratio Range Over the Past 10 Years
Min: 1  Med: 1.61 Max: 2.43
Current: 1.29
1
2.43
Quick Ratio 1.29
NOW's Quick Ratio is ranked lower than
68% of the 1716 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.82 vs. NOW: 1.29 )
Ranked among companies with meaningful Quick Ratio only.
NOW' s Quick Ratio Range Over the Past 10 Years
Min: 1  Med: 1.61 Max: 2.43
Current: 1.29
1
2.43
Days Sales Outstanding 60.31
NOW's Days Sales Outstanding is ranked higher than
58% of the 1451 Companies
in the Global Information Technology Services industry.

( Industry Median: 67.60 vs. NOW: 60.31 )
Ranked among companies with meaningful Days Sales Outstanding only.
NOW' s Days Sales Outstanding Range Over the Past 10 Years
Min: 60.31  Med: 89.12 Max: 117.06
Current: 60.31
60.31
117.06
Days Payable 41.24
NOW's Days Payable is ranked lower than
52% of the 1297 Companies
in the Global Information Technology Services industry.

( Industry Median: 43.28 vs. NOW: 41.24 )
Ranked among companies with meaningful Days Payable only.
NOW' s Days Payable Range Over the Past 10 Years
Min: 17.41  Med: 29.93 Max: 41.41
Current: 41.24
17.41
41.41

Buy Back

vs
industry
vs
history
3-Year Average Share Buyback Ratio -8.40
NOW's 3-Year Average Share Buyback Ratio is ranked lower than
73% of the 1153 Companies
in the Global Information Technology Services industry.

( Industry Median: -2.60 vs. NOW: -8.40 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
NOW' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -74.6  Med: -8.4 Max: 0
Current: -8.4
-74.6
0

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 67.87
NOW's Price/Tangible Book is ranked lower than
98% of the 1416 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.06 vs. NOW: 67.87 )
Ranked among companies with meaningful Price/Tangible Book only.
NOW' s Price/Tangible Book Range Over the Past 10 Years
Min: 15.63  Med: 26.38 Max: 68.74
Current: 67.87
15.63
68.74
Price/Median PS Value 0.71
NOW's Price/Median PS Value is ranked higher than
82% of the 1599 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.10 vs. NOW: 0.71 )
Ranked among companies with meaningful Price/Median PS Value only.
NOW' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.4  Med: 0.98 Max: 1.3
Current: 0.71
0.4
1.3
Earnings Yield (Greenblatt) (%) -3.73
NOW's Earnings Yield (Greenblatt) (%) is ranked lower than
74% of the 1819 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.40 vs. NOW: -3.73 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
NOW' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: -4.59  Med: 0 Max: 0
Current: -3.73
-4.59
0

More Statistics

Revenue (TTM) (Mil) $1,194
EPS (TTM) $ -2.85
Beta1.55
Short Percentage of Float7.70%
52-Week Range $46.00 - 91.28
Shares Outstanding (Mil)164.50

Analyst Estimate


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Dec16 Dec17 Dec18
Revenue (Mil $) 1,377 1,793 2,247
EPS ($) 0.64 1.00 1.47
EPS w/o NRI ($) 0.64 1.00 1.47
EPS Growth Rate
(3Y to 5Y Estimate)
45.59%
Dividends Per Share ($)
» More Articles for NOW

Headlines

Articles On GuruFocus.com
Manning & Napier Buys Stake in ServiceNow May 26 2016 
Bruce Berkowitz Comments on DNOW May 23 2016 
Berkowitz's Fairholme Fund Axes Positions in Berkshire Hathaway, AIG, IBM May 20 2016 
Baron Funds Comments on ServiceNow Inc. May 06 2016 
Manning & Napier Exits Position in Apple Apr 15 2016 
Baron Funds Comments on ServiceNow Inc. Nov 10 2015 
Weekly CEO Sells Highlight: Patrick Industries, Microsemi, ServiceNow, Sharps Compliance Sep 13 2015 
Weekly Insider Sells Highlight: IMS, NOW, BMY, EA Aug 11 2015 
Weekly CEO Sells Highlight: ServiceNow Inc, Eagle Pharmaceuticals Inc, Avago Technologies Ltd, Xactl Jul 11 2015 
Red Hat Moves Higher After Beating Estimates Mar 27 2015 

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ServiceNow Inc Earnings Call scheduled for 5:00 pm ET today Jul 27 2016
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ServiceNow reports 2Q loss Jul 27 2016
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SERVICENOW, INC. Files SEC form 8-K, Results of Operations and Financial Condition, Change in... Jul 27 2016
ServiceNow Reports Financial Results for Second Quarter 2016 Jul 27 2016
ServiceNow Reports Financial Results for Second Quarter 2016 Jul 27 2016

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