Common-Size Income Statement
Quarterly Data
ServiceNow Inc., common-size consolidated income statement (quarterly data)
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Revenue Composition
- The proportion of subscription revenue consistently represents the majority of total revenues, fluctuating slightly but showing a gradual upward trend from around 95.06% in early 2020 to approximately 96.83% by late 2025. Conversely, revenue from professional services and other categories has generally decreased over the period, dropping from about 4.94% to near 3.17% of total revenues, indicating a strategic emphasis on subscription-based offerings.
- Cost of Revenues and Gross Profit
- The cost of revenues as a percentage of total revenues has remained relatively stable, generally around the low 20% range with minor fluctuations. Gross profit margins correspondingly have been strong and somewhat stable, typically around 77% to 80%, reflecting efficient cost management relative to revenue generation over the period.
- Operating Expenses
- Operating expenses, comprising sales and marketing, research and development (R&D), and general and administrative expenses, demonstrate varied trends:
- Sales and Marketing
- This expense category shows a downward trend over time, decreasing from over 42% of revenues in early 2020 to approximately 31% by the end of 2025, suggesting increasing efficiency or cost control in customer acquisition and retention activities.
- Research and Development
- R&D expenses have remained relatively stable, generally fluctuating near the low-to-mid 20% range of revenues, indicating sustained investment in product development and innovation throughout the period.
- General and Administrative
- G&A expenses have declined moderately from around 10% to approximately 7.5% of revenues, reflecting possible efficiency gains in administrative operations.
- Operating Income
- Income from operations as a percentage of revenues exhibits an overall upward trend with some fluctuations, strengthening from a low of approximately 1.43% in late 2020 to around 16.79% by late 2025. This improvement signals enhanced operational profitability, driven by controlled operating expenses and stable gross profit margins.
- Interest and Other Income (Expense)
- Interest income as a percentage of revenues has progressively increased, shifting from a negative impact in early 2020 to a positive contribution near 3.4% to 3.9% in recent periods. Other income or expense, net, remains small relative to revenues with occasional minor negative values, suggesting these items are not significant drivers of overall profitability.
- Income Before Income Taxes and Net Income
- Pre-tax income displays a significant upward trajectory over the reviewed periods, rising from lows near 1% or 2% to peaks exceeding 20%, suggesting increasingly effective overall financial performance. Net income follows a similar pattern, improving markedly and reaching above 14% of revenues by the end of the period, aside from a notable spike around mid-2023 which may reflect an extraordinary income tax benefit. The tax provision typically consumes 2-3% of revenues but demonstrates volatility, including a major positive anomaly in mid-2023 which temporarily boosted net income.
- Summary
- Overall, the data reflects a company with a strong subscription revenue focus, improving profitability through controlled cost structures and rising operating margins. Sustained investments in research and development are maintained alongside improvements in sales, marketing, and administrative efficiencies. Financial income contributes positively over time, and despite fluctuations in tax provisions, net income shows a solid upward trend indicative of growing financial health and operational success.