Stock Analysis on Net

ServiceNow Inc. (NYSE:NOW)

$24.99

Net Profit Margin
since 2012

Microsoft Excel

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Calculation

ServiceNow Inc., net profit margin, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 US$ in millions


Net Income (Loss)
The net income shows a fluctuating trajectory over the period, initially exhibiting losses that deepen from -37 million USD in 2012 to a peak loss of -452 million USD in 2016. Following this considerable negative performance, the net income improves substantially, turning positive in 2019 at 627 million USD. Despite some volatility afterward, net income remains positive, reaching a notable high of 1,731 million USD in 2023 before slightly decreasing to 1,425 million USD in 2024.
Revenues
Revenues demonstrate consistent and significant growth throughout the years, starting at 244 million USD in 2012 and rising steadily each year. This upward trend confirms ongoing expansion, with revenues surpassing 10 billion USD by 2024, indicating strong market demand and effective business scaling strategies.
Net Profit Margin
The net profit margin initially reflects substantial negative values, worsening from -15.32% in 2012 to a low point of -32.49% in 2016, correlating with the net income losses. From 2017 onwards, there is a marked recovery, culminating in a positive margin of 18.11% in 2019. Profitability stabilizes at positive levels thereafter, with margins generally maintaining above 3.9%, peaking at 19.3% in 2023 before moderating to 12.97% in 2024.
Overall Analysis
The financial data reflects a company transitioning from a period of significant initial losses and low profitability to a phase of robust revenue growth and improving profitability. The progressive reduction of net losses leading to sustained net income gains highlights effective cost management or operational efficiencies. The strong revenue increase supports this positive shift, with net profit margins eventually aligning with growing revenues, suggesting enhanced profitability and operational leverage. The peak profitability in 2023, followed by a slight decline in 2024, may warrant further investigation to determine underlying causes.

Comparison to Competitors

ServiceNow Inc., net profit margin, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).


Comparison to Sector (Software & Services)

ServiceNow Inc., net profit margin, long-term trends, comparison to sector (software & services)

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).


Comparison to Industry (Information Technology)

ServiceNow Inc., net profit margin, long-term trends, comparison to industry (information technology)

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).