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

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	1,731)	325)	230)	119)	627)
Depreciation and amortization	562)	433)	472)	336)	252)
Amortization of deferred commissions	459)	358)	294)	218)	168)
Stock-based compensation	1,604)	1,401)	1,131)	870)	662)
Deferred income taxes	(857)	15)	(34)	(24)	(576)
Other	—)	17)	40)	(13)	24)
Accounts receivable	(300)	(340)	(401)	(151)	(260)
Deferred commissions	(717)	(566)	(565)	(365)	(256)
Prepaid expenses and other assets	(203)	(39)	(93)	(54)	(30)
Accounts payable	(142)	172)	55)	(34)	21)
Deferred revenue	1,085)	904)	960)	711)	537)
Accrued expenses and other liabilities	176)	43)	102)	175)	65)
Changes in operating assets and liabilities, net of effect of business combinations	(101)	174)	58)	281)	78)
Adjustments to reconcile net income to net cash provided by operating activities	1,667)	2,398)	1,961)	1,668)	609)
Net cash provided by operating activities	3,398)	2,723)	2,191)	1,787)	1,236)
Purchases of property and equipment	(694)	(550)	(392)	(419)	(265)
Business combinations, net of cash acquired	(282)	(91)	(785)	(107)	(7)
Purchases of investments	(4,634)	(4,038)	(2,485)	(2,922)	(1,596)
Purchases of non-marketable investments	(75)	(167)	(71)	(12)	—)
Sales and maturities of investments	3,522)	2,245)	2,119)	1,965)	1,193)
Other	(4)	18)	7)	(12)	(49)
Net cash used in investing activities	(2,167)	(2,583)	(1,607)	(1,507)	(724)
Net proceeds from borrowings on 2030 Notes	—)	—)	—)	1,482)	—)
Repayments of convertible senior notes attributable to principal	—)	(94)	(61)	(1,628)	—)
Net proceeds from unwind of 2022 Note Hedge	—)	—)	—)	1,106)	—)
Proceeds from employee stock plans	194)	177)	167)	146)	108)
Repurchases of common stock	(538)	—)	—)	—)	—)
Taxes paid related to net share settlement of equity awards	(459)	(427)	(612)	(509)	(410)
Net cash provided by (used in) financing activities	(803)	(344)	(506)	597)	(302)
Foreign currency effect on cash, cash equivalents and restricted cash	1)	(53)	(25)	25)	—)
Net change in cash, cash equivalents and restricted cash	429)	(257)	53)	901)	209)
Cash, cash equivalents and restricted cash at beginning of period	1,475)	1,732)	1,679)	778)	569)
Cash, cash equivalents and restricted cash at end of period	1,904)	1,475)	1,732)	1,679)	778)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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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 2021 to 2022 and from 2022 to 2023.
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 2021 to 2022 but then slightly increased from 2022 to 2023.
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 2021 to 2022 but then decreased significantly from 2022 to 2023.

ServiceNow Inc. (NYSE:NOW)

Cash Flow Statement