Stock Analysis on Net

ServiceNow Inc. (NYSE:NOW)

Cash Flow Statement 

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

ServiceNow Inc., consolidated cash flow statement

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income (loss) 230  119  627  (27) (149)
Depreciation and amortization 472  336  252  150  114 
Amortization of deferred commissions 294  218  168  143  115 
Amortization of debt discount and issuance costs 24  33  53  53 
Stock-based compensation 1,131  870  662  544  394 
Deferred income taxes (34) (24) (576) (34) (9)
Repayments of convertible senior notes attributable to debt discount (15) (82) —  (145) — 
Loss on extinguishment of 2022 Notes 47  —  —  — 
Other 45  (2) (9) (13) (1)
Accounts receivable (401) (151) (260) (146) (98)
Deferred commissions (565) (365) (256) (239) (175)
Prepaid expenses and other assets (93) (54) (30) (20) (46)
Accounts payable 55  (34) 21  (5) (6)
Deferred revenue 960  711  537  469  382 
Accrued expenses and other liabilities 102  175  65  82  68 
Changes in operating assets and liabilities, net of effect of business combinations 58  281  78  141  125 
Adjustments to reconcile net income (loss) to net cash provided by operating activities 1,961  1,668  609  838  792 
Net cash provided by operating activities 2,191  1,787  1,236  811  643 
Purchases of property and equipment (392) (419) (265) (224) (151)
Business combinations, net of cash acquired (785) (107) (7) (37) (58)
Purchases of intangibles (7) (13) (73) (24) (7)
Purchases of investments (2,485) (2,922) (1,596) (1,296) (1,194)
Purchases of strategic investments (71) (12) —  —  — 
Sales and maturities of investments 2,119  1,965  1,193  1,235  526 
Other 14  23  —  — 
Net cash used in investing activities (1,607) (1,507) (724) (347) (884)
Net proceeds from borrowings on 2030 Notes —  1,482  —  —  — 
Net proceeds from borrowings on convertible senior notes —  —  —  —  772 
Repayments of convertible senior notes attributable to principal (61) (1,628) —  (430) — 
Net proceeds from unwind of 2022 Note Hedge —  1,106  —  —  — 
Proceeds from issuance of warrants —  —  —  —  54 
Purchases of convertible note hedges —  —  —  —  (128)
Repurchases and retirement of common stock —  —  —  —  (55)
Proceeds from employee stock plans 167  146  108  104  83 
Taxes paid related to net share settlement of equity awards (612) (509) (410) (281) (182)
Payments on financing obligations —  —  —  (1) (5)
Net cash provided by (used in) financing activities (506) 597  (302) (607) 539 
Foreign currency effect on cash, cash equivalents and restricted cash (25) 25  —  (16) 28 
Net increase (decrease) in cash, cash equivalents and restricted cash 53  901  209  (159) 326 
Cash, cash equivalents and restricted cash at beginning of period 1,679  778  569  728  402 
Cash, cash equivalents and restricted cash at end of period 1,732  1,679  778  569  728 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Cash flow statement item Description The company
Net cash provided by operating activities Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities. ServiceNow Inc. net cash provided by operating activities increased from 2019 to 2020 and from 2020 to 2021.
Net cash used in investing activities Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets. ServiceNow Inc. net cash used in investing activities decreased from 2019 to 2020 and from 2020 to 2021.
Net cash provided by (used in) financing activities Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit. ServiceNow Inc. net cash provided by (used in) financing activities increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.