ServiceNow Inc., adjustment to net income

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (as reported)	1,731)	325)	230)	119)	627)
Add: Unrealized gains (losses) on investments, net of tax	38)	(66)	(19)	3)	9)
Net income (adjusted)	1,769)	259)	211)	121)	635)

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ServiceNow Inc., adjusted profitability ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	19.30%	4.49%	3.90%	2.62%	18.11%
Adjusted net profit margin	19.72%	3.57%	3.58%	2.68%	18.36%
Return on Equity (ROE)
Reported ROE	22.69%	6.46%	6.22%	4.18%	29.45%
Adjusted ROE	23.19%	5.15%	5.71%	4.28%	29.86%
Return on Assets (ROA)
Reported ROA	9.96%	2.44%	2.13%	1.36%	10.41%
Adjusted ROA	10.17%	1.95%	1.95%	1.39%	10.55%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	ServiceNow Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	ServiceNow Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	ServiceNow Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	1,731)	325)	230)	119)	627)
Revenues	8,971)	7,245)	5,896)	4,519)	3,460)
Profitability Ratio
Net profit margin¹	19.30%	4.49%	3.90%	2.62%	18.11%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	1,769)	259)	211)	121)	635)
Revenues	8,971)	7,245)	5,896)	4,519)	3,460)
Profitability Ratio
Adjusted net profit margin²	19.72%	3.57%	3.58%	2.68%	18.36%

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × 1,731 ÷ 8,971 = 19.30%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 1,769 ÷ 8,971 = 19.72%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	ServiceNow Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	1,731)	325)	230)	119)	627)
Stockholders’ equity	7,628)	5,032)	3,695)	2,834)	2,128)
Profitability Ratio
ROE¹	22.69%	6.46%	6.22%	4.18%	29.45%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	1,769)	259)	211)	121)	635)
Stockholders’ equity	7,628)	5,032)	3,695)	2,834)	2,128)
Profitability Ratio
Adjusted ROE²	23.19%	5.15%	5.71%	4.28%	29.86%

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,731 ÷ 7,628 = 22.69%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 1,769 ÷ 7,628 = 23.19%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	ServiceNow Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	1,731)	325)	230)	119)	627)
Total assets	17,387)	13,299)	10,798)	8,715)	6,022)
Profitability Ratio
ROA¹	9.96%	2.44%	2.13%	1.36%	10.41%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	1,769)	259)	211)	121)	635)
Total assets	17,387)	13,299)	10,798)	8,715)	6,022)
Profitability Ratio
Adjusted ROA²	10.17%	1.95%	1.95%	1.39%	10.55%

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,731 ÷ 17,387 = 9.96%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 1,769 ÷ 17,387 = 10.17%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	ServiceNow Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

ServiceNow Inc. (NYSE:NOW)

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