Stock Analysis on Net
Stock Analysis on Net

ServiceNow Inc. (NYSE:NOW)

$24.99

Operating Profit Margin
since 2012

Microsoft Excel

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Calculation

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

Microsoft Excel
Operating profit margin = 100 × Income (loss) from operations1 ÷ Revenues1
Dec 31, 2024 = 100 × ÷
Dec 31, 2023 = 100 × ÷
Dec 31, 2022 = 100 × ÷
Dec 31, 2021 = 100 × ÷
Dec 31, 2020 = 100 × ÷
Dec 31, 2019 = 100 × ÷
Dec 31, 2018 = 100 × ÷
Dec 31, 2017 = 100 × ÷
Dec 31, 2016 = 100 × ÷
Dec 31, 2015 = 100 × ÷
Dec 31, 2014 = 100 × ÷
Dec 31, 2013 = 100 × ÷
Dec 31, 2012 = 100 × ÷

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

Revenues
The revenue exhibited consistent and significant growth over the examined period, increasing from $244 million in 2012 to $10,984 million by the end of 2024. This upward trend demonstrates a strong expansion trajectory, with the company nearly doubling its revenues between 2021 and 2024.
Income (loss) from operations
Operating income has shown substantial improvement, transitioning from a negative position of -$38 million in 2012 to a positive $1,364 million in 2024. Despite initial fluctuations and periods of substantial losses, particularly in 2016 (-$423 million), the company managed a turnaround starting in 2019, leading to increasing profits in subsequent years.
Operating profit margin
The operating profit margin has followed an upward trajectory from negative margins in the early years, with a low of -30.41% in 2016. After 2016, margins improved steadily, reaching positive territory by 2019 at 1.22% and progressing to 12.42% in 2024. This indicates increased operational efficiency and better cost management as revenues grew.
Overall Insights
The analyzed data reveals a company transitioning from operating losses to consistent profitability alongside accelerating revenue growth. The recovery from significant negative operating income and margins around 2016-2017 to positive and expanding profitability margins by 2024 highlights effective strategic or operational shifts. The correlation between growing revenues and improving margins suggests scaling benefits and enhanced operational leverage.

Comparison to Competitors

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

Microsoft Excel
ServiceNow Inc. Accenture PLC Adobe Inc. Cadence Design Systems Inc. CrowdStrike Holdings Inc. Fair Isaac Corp. Intuit Inc. Microsoft Corp. Oracle Corp. Palantir Technologies Inc. Palo Alto Networks Inc. Salesforce Inc. Synopsys Inc. Workday Inc.
Dec 31, 2024
Dec 31, 2023
Dec 31, 2022
Dec 31, 2021
Dec 31, 2020
Dec 31, 2019
Dec 31, 2018
Dec 31, 2017
Dec 31, 2016
Dec 31, 2015
Dec 31, 2014
Dec 31, 2013
Dec 31, 2012

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).