ServiceNow, Inc (NOW) saw its loss narrow to $32.59 million, or $0.20 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $37.38 million, or $0.23 a share. On the other hand, adjusted net income for the quarter stood at $42.36 million, or $0.24 a share compared with $32.60 million or $0.19 a share, a year ago. Revenue during the quarter surged 35.01 percent to $385.67 million from $285.65 million in the previous year period. Gross margin for the quarter expanded 462 basis points over the previous year period to 72.79 percent. Operating margin for the quarter stood at negative 6.12 percent as compared to a negative 10.80 percent for the previous year period.
Operating loss for the quarter was $23.60 million, compared with an operating loss of $30.86 million in the previous year period.
However, the adjusted operating income for the quarter stood at $63.76 million compared to $40.25 million in the prior year period. At the same time, adjusted operating margin improved 244 basis points in the quarter to 16.53 percent from 14.09 percent in the last year period.
“We finished 2016 with strong momentum and our business is firing on all cylinders,” said Frank Slootman, chairman and chief executive officer, ServiceNow. “Total revenues in 2016 grew 38% making ServiceNow the fastest growing enterprise software company with more than $1 billion in revenue.”
For the first-quarter, Servicenow forecasts revenue to be in the range of $406 million to $411 million. Servicenow forecasts revenue to be in the range of $1,820 million to $1,850 million for fiscal year 2017. For the first-quarter, Servicenow forecasts adjusted revenue to be in the range of $416 million to $421 million. Servicenow forecasts adjusted revenue to be in the range of $1,860 million to $1,890 million for fiscal year 2017.
Operating cash flow drops significantly
ServiceNow, Inc has generated cash of $159.92 million from operating activities during the year, down 49.67 percent or $157.83 million, when compared with the last year. The company has spent $112.55 million cash to meet investing activities during the year as against cash outgo of $231.74 million in the last year.
The company has spent $51.65 million cash to carry out financing activities during the year as against cash inflow of $80.33 million in the last year period.
Cash and cash equivalents stood at $401.24 million as on Dec. 31, 2016, down 2.68 percent or $11.07 million from $412.30 million on Dec. 31, 2015.
Working capital declines
ServiceNow, Inc has witnessed a decline in the working capital over the last year. It stood at $267.88 million as at Dec. 31, 2016, down 24.33 percent or $86.12 million from $354 million on Dec. 31, 2015. Current ratio was at 1.25 as on Dec. 31, 2016, down from 1.48 on Dec. 31, 2015.
Debt moves up
ServiceNow, Inc has witnessed an increase in total debt over the last one year. It stood at $507.81 million as on Dec. 31, 2016, up 7.01 percent or $33.28 million from $474.53 million on Dec. 31, 2015. Servicenow has witnessed an increase in long-term debt over the last one year. It stood at $507.81 million as on Dec. 31, 2016, up 7.01 percent or $33.28 million from $474.53 million on Dec. 31, 2015. Total debt was 24.97 percent of total assets as on Dec. 31, 2016, compared with 26.26 percent on Dec. 31, 2015. Debt to equity ratio was at 1.31 as on Dec. 31, 2016, up from 0.84 as on Dec. 31, 2015.
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