Stock Analysis on Net

ServiceNow Inc. (NYSE:NOW)

Cash Flow Statement
Quarterly Data

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 (quarterly data)

US$ in millions

Microsoft Excel
3 months ended: Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Net income (loss) 295 242 1,044 150 150 80 20 75 26 63 59 82 17 13 41 48 599 41 (11) (2)
Depreciation and amortization 154 146 136 126 118 109 105 101 126 125 115 106 93 85 82 76 72 64 60 55
Amortization of deferred commissions 126 115 112 106 97 92 86 83 83 75 70 66 60 56 52 49 46 43 40 40
Stock-based compensation 413 413 397 381 363 361 352 325 303 291 281 256 245 220 217 188 170 163 172 157
Deferred income taxes 17 30 (911) 7 18 (1) (2) (13) (5) (17) 1 (18) (3) (2) (2) (573) (2) (1)
Other 13 (11) (3) 1 8 (10) 4 15 18 13 (1) 10 (9) (19) 4 11 4 7 4 9
Accounts receivable (852) (83) 16 619 (785) (66) (51) 562 (620) (5) (130) 354 (362) 10 (9) 209 (288) (43) (80) 151
Deferred commissions (264) (173) (121) (159) (197) (132) (100) (137) (221) (127) (103) (114) (144) (77) (73) (71) (97) (61) (51) (47)
Prepaid expenses and other assets (20) (47) (72) (64) 34 (1) (26) (46) (15) (21) (54) (3) (13) (9) (12) (20) (4) 3 5 (34)
Accounts payable 46 (98) (44) (46) 56 (24) 71 69 16 (36) (14) 89 (35) (36) 17 21 (9) 5 19 7
Deferred revenue 1,302 (128) (129) 40 1,060 (112) (65) 21 913 (38) 10 75 644 (3) 9 60 402 35 39 61
Accrued expenses and other liabilities 375 (95) 155 (259) 240 (32) 38 (203) 228 (15) 84 (195) 206 5 42 (78) 100 (46) 48 (36)
Changes in operating assets and liabilities, net of effect of business combinations 587 (624) (195) 131 408 (367) (133) 266 301 (242) (207) 206 297 (110) (26) 120 103 (107) (20) 103
Adjustments to reconcile net income (loss) to net cash provided by operating activities 1,310 69 (464) 752 1,012 185 413 788 818 257 241 645 669 229 327 443 (178) 170 255 362
Net cash provided by operating activities 1,605 311 580 902 1,162 265 433 863 844 320 300 727 686 241 368 492 421 210 244 361
Purchases of property and equipment (261) (136) (132) (165) (144) (162) (151) (93) (100) (94) (91) (107) (134) (92) (110) (83) (79) (89) (50) (47)
Business combinations, net of cash acquired (282) (34) (57) (7) (40) (513) (225) (25) (83) (7)
Purchases of investments (829) (984) (1,599) (1,222) (1,227) (1,037) (1,112) (662) (744) (609) (488) (644) (705) (1,121) (580) (528) (340) (455) (362) (439)
Purchases of non-marketable investments (19) (10) (16) (30) (29) (2) (35) (101) (43) (21) (7)
Sales and maturities of investments 654 915 1,073 880 545 569 554 577 540 556 491 532 666 534 453 313 261 423 245 263
Other 11 (28) 13 15 3 1 (1) (5) 11 (6) 7 (5) 2 (6) (4) (34) (2) (36) 22
Net cash used in investing activities (444) (525) (674) (524) (874) (629) (800) (280) (359) (197) (614) (437) (177) (702) (243) (385) (199) (122) (203) (201)
Net proceeds from borrowings on 2030 Notes 1,482
Repayments of convertible senior notes attributable to principal (88) (6) (2) (6) (25) (28) (59) (1,553) (14) (2)
Net proceeds from unwind of 2022 Note Hedge 1,106
Proceeds from employee stock plans 1 76 117 71 1 105 2 70 95 3 51 24 67 3 42 10 53
Repurchases of common stock (256) (282)
Taxes paid related to net share settlement of equity awards (126) (127) (94) (112) (75) (111) (91) (150) (155) (142) (124) (191) (148) (122) (113) (126) (79) (83) (108) (139)
Net cash provided by (used in) financing activities (381) (333) (94) 5 (75) (40) (178) (51) (155) (78) (149) (124) (203) 963 (102) (61) (76) (41) (98) (86)
Foreign currency effect on cash, cash equivalents and restricted cash 5 (4) (1) 1 8 (12) (44) (5) (4) (10) 7 (18) 22 8 6 (11) 6 (8) 1
Net change in cash, cash equivalents and restricted cash 785 (551) (189) 384 221 (416) (589) 527 326 35 (456) 148 328 510 29 35 152 39 (56) 75

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

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 decreased from Q2 2023 to Q3 2023 but then increased from Q3 2023 to Q4 2023 exceeding Q2 2023 level.
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 increased from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 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 decreased from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023.