Common-Size Income Statement
Quarterly Data
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- Balance Sheet: Assets
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Net Profit Margin since 2012
- Return on Equity (ROE) since 2012
- Aggregate Accruals
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ServiceNow Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
The financial trajectory over the analyzed period indicates a strategic shift toward a subscription-dominant revenue model and a consistent expansion of operational efficiency. There is a clear trend of margin improvement, driven by the reduction of operating expenses as a percentage of total revenue and an increase in the proportion of recurring revenue streams.
- Revenue Composition
- Subscription revenue has grown steadily as a percentage of total revenues, rising from 95.07% in March 2021 to 97.37% by March 2026. Conversely, professional services and other revenue streams have contracted from 4.93% to 2.63% over the same period. This shift underscores a transition toward a more scalable, recurring revenue base.
- Gross Profitability
- Gross profit margins remained strong, generally fluctuating between 75% and 80%. A peak of 80.02% was observed in March 2023. While the cost of revenues remained relatively stable for much of the period, a notable increase to 24.93% occurred in the final quarter of the data set, resulting in a gross profit margin decline to 75.07% by March 2026.
- Operating Expense Management
- A sustained reduction in operating expenses as a percentage of revenue is evident, dropping from 70.88% in March 2021 to 61.72% in March 2026. This improvement is primarily attributed to a decrease in sales and marketing spend, which fell from 38.53% to 32.25%, and general and administrative expenses, which declined from 9.26% to 7.64%. Research and development expenses remained more consistent, hovering between 21% and 25% of revenue.
- Operating and Net Income Trends
- Income from operations demonstrates a positive upward trend, increasing from 7.13% in March 2021 to 13.34% in March 2026. Net income margins also trended upward, starting at 6.03% and reaching 12.44% by the end of the period. A significant outlier is observed in June 2023, where net income surged to 48.56%, correlated with a substantial tax benefit of 40.47% of revenue.
- Non-Operating Impact
- Interest income as a percentage of revenue saw a marked increase from approximately 0.5% in early 2021 to peaks near 3.96% in 2024, before settling at 2.33% in March 2026. This indicates a growing contribution from cash reserves or short-term investments to the overall bottom line.