ServiceNow (NOW) saw its loss narrow to $36.26 million, or $0.22 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $41.03 million, or $0.26 a share. On the other hand, adjusted net income for the quarter stood at $39.53 million, or $0.23 a share compared with $24.99 million or $0.15 a share, a year ago. Revenue during the quarter surged 36.95 percent to $357.66 million from $261.15 million in the previous year period. Gross margin for the quarter expanded 260 basis points over the previous year period to 71.25 percent. Operating margin for the quarter stood at negative 7.49 percent as compared to a negative 10.74 percent for the previous year period.
Operating loss for the quarter was $26.78 million, compared with an operating loss of $28.04 million in the previous year period.
However, the adjusted operating income for the quarter stood at $58.60 million compared to $40.01 million in the prior year period. At the same time, adjusted operating margin improved 106 basis points in the quarter to 16.39 percent from 15.32 percent in the last year period.
"We are very pleased with the third quarter results," said Frank Slootman, chairman and chief executive officer, ServiceNow. "The company saw broad based contribution and large deal activity across all major sales regions and product segments."
For fiscal year 2016, ServiceNow forecasts revenue to be in the range of $1,381 million to $1,386 million.
For the fourth-quarter 2016, ServiceNow forecasts revenue to be in the range of $376 million to $381 million.
Operating cash flow drops significantly
ServiceNow has generated cash of $27.23 million from operating activities during the nine month period, down 87.11 percent or $183.97 million, when compared with the last year period.
The company has spent $83.24 million cash to meet investing activities during the nine month period as against cash outgo of $171 million in the last year period.
The company has spent $30.76 million cash to carry out financing activities during the nine month period as against cash inflow of $60.63 million in the last year period.
Cash and cash equivalents stood at $325.07 million as on Sep. 30, 2016, down 6.88 percent or $24.01 million from $349.07 million on Sep. 30, 2015.
Working capital drops significantly
ServiceNow has witnessed a decline in the working capital over the last year. It stood at $228.57 million as at Sep. 30, 2016, down 34.09 percent or $118.22 million from $346.79 million on Sep. 30, 2015. Current ratio was at 1.25 as on Sep. 30, 2016, down from 1.55 on Sep. 30, 2015.
Days sales outstanding went down to 47 days for the quarter compared with 53 days for the same period last year.
At the same time, days payable outstanding went down to 23 days for the quarter from 29 for the same period last year.
Debt moves up
ServiceNow has witnessed an increase in total debt over the last one year. It stood at $499.28 million as on Sep. 30, 2016, up 6.95 percent or $32.45 million from $466.83 million on Sep. 30, 2015. Servicenow has witnessed an increase in long-term debt over the last one year. It stood at $499.28 million as on Sep. 30, 2016, up 6.95 percent or $32.45 million from $466.83 million on Sep. 30, 2015. Total debt was 27.54 percent of total assets as on Sep. 30, 2016, compared with 28.07 percent on Sep. 30, 2015. Debt to equity ratio was at 1.38 as on Sep. 30, 2016, up from 0.90 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
