Servicenow, Inc. · NYSE:NOW
Servicenow — Investor Day (May 2021)
95 slides from Servicenow's investor day presentation, May 10, 2021
Slide 1: ServiceNow
servicenow
Slide 2: Financial Analyst Day 2021
Financial Analyst Day 2021 Driving durable growth and leverage at scale May 10, 2021
Slide 3: Agenda
Agenda Welcome Darren Yip, Head of Investor Relations Vision Bill McDermott, President & Chief Executive Officer Product Innovation CJ Desai, Chief Product and Engineering Officer John Ball, SVP of Customer Workflows Josh Kahn, SVP of Creator Workflows Customer Experience Jeremy Legg, EVP AT&T Commu
Slide 4: Safe Harbor and Other Information
Safe Harbor and Other Information This presentation contains “forward‐looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. Forward‐looking statements include information concerning our possible or assumed strategy, futur
Slide 5: Statement Regarding Use of Non-GAAP Financial Measures
Statement Regarding Use of Non-GAAP Financial Measures We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Our non-GAAP presentation of sales efficiency represents the change in total revenue in cur
Slide 6: The World Works with ServiceNow
The World Works with ServiceNow Bill McDermott President and Chief Executive Officer
Slide 7: ServiceNow is the control tower for digital transformation
ServiceNow is the control tower for digital transformation Secular Trends C-Suite Priorities Business Model Serve customers Innovation to drive growth Multi-Cloud and Edge Computing Make the world work better for people Application Modernization Hyper-Automation $7.8T Simplify and Integrate everythi
Slide 8: State of the business: leading innovation, culture and results
State of the business: leading innovation, culture and results Best in Class Financials Accelerated Innovation Industry-best Talent and Subscription Revenue 7 9 Culture Accolades $4.3B $1.3B New Products Technology market leadership recognition 13,000+ (+2,700 in 2020) Total Employees 2020 Q1 2021 R
Slide 9: ServiceNow's unprecedented organic path to $10B+
ServiceNow’s unprecedented organic path to $10B+ FY24: $10B+ Subscription Revenue(1 ) 0 1 2 3 4 5 6 7 8 YearsYears since to $2B, $4B, $1B $10B Note: Year 0 based on the FY that each company crosses $1B in revenue. ServiceNow 2021 (Year 5) represents the high-end of subscription revenue guidance as o
Slide 10: Beyond $10B: Strong momentum continues to $15B+
Beyond $10B: Strong momentum continues to $15B+ 15 in 5 + $ Billion of Subscription Revenue Years to Reach Target
Slide 11: Opportunity: a next-generation suite on a clean platform
Opportunity: a next-generation suite on a clean platform Industry Solutions Platform for Digital Workflows Low code No code and Buyer: CEO, CXO Hyper Automation 87% of Enterprises are accelerating Buyer: CIO/CDO IT led digital transformation 65% of enterprise software will be low code by 2022 Platfo
Slide 12: We will be the defining enterprise software company of the 21st century
We will be the defining enterprise software company of the 21st century Leading financial performance Profitable growth Outstanding market leadership Innovative platform Unparalleled customer loyalty Customer centric Broad and engaged ecosystem Global reach Impact-driven ESG mindset Diverse and incl
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Slide 16: Product Innovation
Product Innovation CJ Desai Chief Product and Engineering Officer
Slide 17: We are a platform company
We are a platform company OG
Slide 18: Our platform differentiation provides excellent gross margin and new product unit economics
Our platform differentiation provides us with excellent Gross Margin & New Product Creation Unit Economics 1 Architecture Legend 1 Data Model All Core Services Multi-Instance Scale Native Integrations 1 Architecture Minimal Downtime Native Integrations Organically Built Hub All Core Services Over 50
Slide 19: Platform AI Drives Intelligent Workflows
Platform AI Drives Intelligent Workflows Now Platform®
Slide 20: Platform AI enables intelligence in the workflows
Platform AI enables intelligence in the workflows Content, Conversations, AI: Hello, how may I help you today? Machine Logs, Process Logs... Erin: I would like to request a new 24” monitor for my computer. Thank you. Understand what the employee is requesting Predictions, Reason: Decisions, base
Slide 21: Platform AI powers our Biggest Pro Offerings
Platform AI powers our Biggest Pro Offerings ITSM Pro & ITOM Pro CSM Pro HR Pro Platform AI AI … Solutions Incident Deflection AIOps Agent Assist Chatbots AI Capabilities … Classification Similarity Clustering NLU NLQ AI Search Core AI … Technologies Trainer Predictor Scheduler Workflow Data
Slide 22: Portfolio has expanded beyond IT with significant market opportunities
Portfolio has expanded beyond IT and there are significant market opportunities across our workflows IT Workflows Customer Workflows Employee Workflows Now Platform $114B $175B 2020 2024 Creator Workflows * Industry Solutions, Connected Operations and Performance Analytics Note: Calculations perform
Slide 23: Our Portfolio is benefiting from Accelerated Innovations
Our Portfolio is benefiting from Accelerated Innovations HR Service Delivery ITSM Pro Safe Workplace Full Stack Observability Customer Service Field Service Management Hardware Asset Management Insurance Industry Products Management Integration Hub Telecommunications Industry Products Cloud Service
Slide 24: All Products in the portfolio are built on a Single Platform
All Products in the portfolio are built on a Single Platform IT Workflows Customer Workflows IT Service Management Customer Service Management IT Operations Management Field Service Management Software Asset Management Connected Operations Hardware Asset Management Industry Solutions IT Business Man
Slide 25: IT Workflows
IT Workflows CJ Desai Chief Product and Engineering Officer
Slide 26: TAM and Market Trends
TAM and Market Trends Trends Digital Transformation Software powers the entire value chain Evolving IT Role Strategic partner accountable across $61B decentralized responsibilities Competing Priorities Innovate faster, improve resiliency, $40B $61B control cost TAM for IT Workflows in 2024 2020 2024
Slide 27: IT Workflows Strategy
IT Workflows Strategy Platform for IT Connect the tools, processes and people that deliver software and services to accelerate innovation and strengthen controls Outperform market via Extend solutions to serve Move into more non-tech innovation in current solutions all technology buyers buying cente
Slide 28: Lightstep Acquisition
Lightstep Acquisition Extending the Platform for IT with full-stack observability into cloud-native apps for DevOps and SRE Full-stack observability technology leader Deep, real-time insight into distributed cloud native applications Proven at cloud leaders Spotify, Twilio, Lyft Extends Fabric to ne
Slide 29: Evidence that we are winning
Evidence that we are winning Customer Expansion Market Expansion Analyst Recognition as a Leader 2x customers with 3+ IT Regulated Markets 2021 Magic Quadrant for Enterprise Agile Planning Tools Workflows products • US IL5 2020 Magic Quadrant for IT Service Management Tools over the past 2 years 202
Slide 30: Evidence that we are winning
Evidence that we are winning Customer Expansion Market Expansion Analyst Recognition as a Leader 2x customers with 3+ IT Regulated Markets #1 Gartner ITSM Total Worldwide Revenue Market Share, 2020 Workflows products • US IL5 #2 Gartner IT Operations Total Worldwide Market Share, 2020 over the past
Slide 31: Customer Workflows
Customer Workflows John Ball Senior Vice President Customer Workflows
Slide 32: TAM and Market Trends
TAM and Market Trends Trends Direct-to-Consumer Everything-as-a-service $33B $20B $33B Work from anywhere TAM for Customer Workflows 2020 2024 in 2024 Note: Calculations performed by ServiceNow and graphics created by ServiceNow based on Gartner research. Source: markets defined from Gartner Report:
Slide 33: Customer Workflows Strategy
Customer Workflows Strategy … Extend Horizontal Capabilities Build on NOW Platform Enhance by Industry All common capabilities needed Extend & configure OOTB Even faster time to value for modern customer service and workflows with no/low code Telecoms and Banking GA today, field service Native Integ
Slide 34: Evidence that we are winning
Evidence that we are winning Market Traction Recognition Partner Momentum $400M ACV (2020) A Leader in 2020 Magic 60% Y/Y growth in Quadrant for the CRM partner sourced pipeline 111% 2016-2020 CAGR Customer Engagement >1500 Customers Center GARTNER is a registered trademark and service mark of Gartn
Slide 35: Customers across every industry
Customers across every industry Tech Telecom and Media Financial Services Healthcare 1/2 of F500 1/3 of F500 1/3 of F500 1/3 of F500 Government Transportation Retail and Hospitality Manufacturing State of Tennessee 1/5 of F500 1/5 of F500 State of Delaware Education 200+ customers 70+ customers 1/5
Slide 36: Digital Transformation Requires Customer Engagement AND Customer Operations
Digital Transformation Requires Customer Engagement AND Customer Operations Customer Engagement + Customer Operations
Slide 37: Great Customer Experiences Require Great Engagement
Great Customer Experiences Require Great Engagement
Slide 38: Current Customer Operations is Often a Mess
Current Customer Operations is Often a Mess
Slide 39: ServiceNow Powers Great Experiences by Combining Great Engagement and Operations
ServiceNow Powers Great Experiences by Combining Great Engagement and Operations
Slide 40: Vaccine Administration Management – Extreme Agility
Vaccine Administration Management – Extreme Agility Consumer-grade Contactless and efficient Vaccine site workflow patient experience clinician experience management Developed in a month | Deployed in days by health care organizations
Slide 41: Payment Operations
Payment Operations 16 + 6Steps Systems / Tools Steps 2+1 Systems / Tools Reduced to Create Assign Research Create Assign Research Case Case Case Case Case Case Faster customer response Create/ Create/ Close Close Process Reduced cost Process Case Case Claim Claim Higher payment recovery rates System
Slide 42: We are highly differentiated in a large and growing market
We are highly 1 Digital transformation provides a huge market tailwind for Customer Workflows differentiated in a large and growing 2 We have a complete offering for modern engagement, customer operations, and field service market $33B 3 Our solutions are built on the most flexible platform in the m
Slide 43: Creator Workflows
Creator Workflows Josh Kahn Senior Vice President Creator Workflows
Slide 44: TAM and Market Trends
TAM and Market Trends Trends Business Process Digitization Apps replace unstructured process $36B Scarcity of Software Engineers Scaling application delivery requires enabling departmental citizen developers $25B $36B Fragmented Automation Technologies TAM for Creator Workflows 2020 2024 Multiple au
Slide 45: Creator Workflows Strategy
Creator Workflows Strategy Deliver a Focus on IT as our Win other buyers with Be selective in how consolidated primary customer ServiceNow products we capture TAM automation platform The speed, power, and trust Customer operations with App Engine: Win the app Complete spectrum of IT needs to build b
Slide 46: Evidence that we are winning
Evidence that we are winning Market Traction Analyst Recognition End User Adoption >$450M ACV (2020)(1) A Leader in 2020 Magic 2M+ monthly active users of Quadrant for Enterprise Low- apps, up >35% in 2020 >45% CAGR 2016-2020 Code Application Platforms Integration usage >2000 Customers up >500% in 2
Slide 47: Enterprises are transforming all operations with apps
Enterprises are transforming all operations with apps Complex Simple Request brand materials Packaged Goods trade show Sales Customer Regional Marketing Request event staff $90B+ Workflow of Prescription Benefits Management Drug Pricing $70B+ Fortune 200 Consumer Packaged Goods Company Annual Revenu
Slide 48: Our new low-code foundation: App Engine Studio
Our new low-code foundation: App Engine Studio Quebec release in Q1 2021 raises the bar on low code application development Accelerates IT developers who want to write code by doing the easy stuff fast Empowers citizen developers to build powerful apps with no code Allows IT developers to provide re
Slide 49: Creator Workflows is the complete low-code automation platform
Creator Workflows is the complete low- 1 Workflow and Process Analytics Low-code tools, workflow, predictive analytics, and process mining code automation platform to seize the market opportunity Automation Technologies 2 Integrations, decision management, machine learning, artificial intelligence,
Slide 50: Employee Workflows
Employee Workflows Employee Workflows CJCJDesai Desai Chief Chief Product Product Officer and Engineering Officer
Slide 51: TAM and Market Trends
TAM and Market Trends Trends Because of the pandemic,“the employee” is a C-Level focus Remote, hybrid work has reinforced the necessity of digital employee $20B experiences Future of Work $13B $20B Post pandemic, employees will continue to digitally engage across TAM for Employee Workflows 2020 2024
Slide 52: Employee Workflow Strategy
Employee Workflow Strategy Deliver experiences Enable simple Provide workplace Improve employee across the enterprise and complex services for future journeys employee services of work Meet employees “where Improve employee they are” and deliver Enable AI-driven Assess readiness for experience and e
Slide 53: Simplifying the Employee Experience
Simplifying the Employee Experience “What is the policy?” … “Which system” or “department?” … “Who can help?” Tax Season Employee Payroll Relations Discrepancy Departmental Transfers NDA and Simple Contract Requests Password Change, Reset Off-boarding (voluntary, On-boarding in-voluntary) Desk Troub
Slide 54: Evidence that we are winning
Evidence that we are winning Market Traction Innovation and Velocity Customer Validation $350M ACV (2020) 22 Safe Workplace releases Positive customer feedback 109% 2016-2020 CAGR since launch in May 2020 that employee experience is across the enterprise 50% of Fortune 50 CHROs and Over 100 customer
Slide 55: NowX
NowX CJ Desai Chief Product and Engineering Officer
Slide 56: NowX: Conceptualizing and Delivering Organic Innovation
NowX: Conceptualizing and Delivering Organic Innovation $ $ $ $ $ $ $ $ $ $ $$ $ $ $$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2018 2019 2020 2021 NowX started 2 new products released 5 New products released Deliver ROI 50 Enterprise Customers 2-3 New Products >$100M ACV
Slide 57: Product Portfolio built on a Single Platform
Product Portfolio built on a Single Platform IT Workflows Customer Workflows IT Service Management Customer Service Management IT Operations Management Field Service Management Software Asset Management Connected Operations (NowX) Hardware Asset Management Industry Solutions (NowX) IT Business Manag
Slide 58: NowX is organically innovating industry solutions
NowX is organically innovating industry solutions 2020 2021 2022 And beyond… Telecommunications Manufacturing Cloud Service Providers Banking Healthcare Insurance Telecommunications Manufacturing Banking Healthcare Telecommunications Banking
Slide 59: Financial Overview and Global Impact Strategy
Financial Overview and Global Impact Strategy Gina Mastantuono Chief Financial Officer
Slide 60: Delivering unmatched organic growth at $5B+ run rate
Delivering unmatched Subscription Revenues and Y/Y Growth organic growth at $5B+ 46% 41% 39% 34% 32% run rate 37% US Dollars in Millions ($M) $4,286 $3,255 $2,421 2016 – 2020 CAGR $1,740 Subscription Revenue $1,234 2016 2017 2018 2019 2020 Note: Numbers rounded for presentation purposes
Slide 61: Strong current RPO trends providing insight into sustained revenue growth
Legend With strong current RPO $8.9 Noncurrent RPO trends providing insight Current RPO into sustained revenue growth $6.6 US Dollars in Billions ($B) $4.5 2018 – 2020 CAGR 34% $4.9 $3.3 $2.5 Total RPO 33% Current RPO $2.5 2018 $3.3 2019 $4.4 2020 Note: Numbers rounded for presentation purposes
Slide 62: Organic growth engine fueled by multiple drivers
Organic growth engine fueled by multiple drivers Land And Expand Add new Grow existing Cross sell Upsell to New buying customers deployments new products premium SKUs centers wall-to-wall
Slide 63: Landing larger deals with new customers
Landing larger deals with new customers ~70% 2016 – 2020 Growth ~30% 2016 – 2020 Growth New customer average first year ACV Average number of products purchased in first year
Slide 64: And once they become customers, they continue to grow
And once they become customers, they continue to grow Annual Growth of Initial ACV 77% 68% 74% 85% 90% 74% 84% 91% 127% 132% (1) (1) As an illustrative example, 2010 customer cohort started with a contract of initial ACV (annual contract value) of $100 and grew to ACV of $1,420 as of Q4-20, represen
Slide 65: Expanding existing customer relationships
Legend Expanding existing New customers net new ACV customer relationships Expansion net new ACV 125%+ net expansion rate in 2020 28% 25% 20% 16% 14% 86% 60%+ 84% 75% 80% 72% of our existing customer base spent incremental dollars with NOW in 2020 2016 2017 2018 2019 2020 Note: Revised mapping of cu
Slide 66: Multi-product deals are increasing stickiness
Legend Multi-product deals are 5+ product deals increasing stickiness 2-4 product deals Single product deals 87% of our deals include 3+ products 26% 38% 44% 54% 65% 99% 57% 50% 47% 39% 30% Renewal rate for customers with 17% 3+ products 12% 9% 7% 5% 2016 2017 2018 2019 2020 Note: Numbers rounded fo
Slide 67: Today: AI powered experiences create new upsell opportunities
AI powered experiences create new upsell opportunities Current Pro SKU Penetration 20%+ ITSM Pro SKU now 20% penetrated carrying a 25% realized price uplift CSM Pro SKU now 30% Today penetrated Launched ITSM and CSM Standard Enterprise SKU in Q1 SKU ~75% Note: Penetration defined as the percentage o
Slide 68: Target: AI powered experiences create new upsell opportunities
AI powered experiences create new upsell Enterprise SKU opportunities Standard Penetration SKU 25% Opportunity 20% ITSM Pro SKU now 20% penetrated carrying a 25% realized price uplift CSM Pro SKU now 30% Target penetrated Launched ITSM and CSM Pro SKU Enterprise SKU in Q1 Penetration Opportunity 55%
Slide 69: Average $1M+ Customer Spend Continues to Grow
Average $1M+ Customer Spend Continues to Grow Avg $1M+ Customer ACV ~50% 2016 – 2020 Growth ACV for $1M+ Customers 2016 2020 Note: Previously disclosed number of customers with ACV greater than $1 million is restated to allow for comparability. ACV is calculated based on the foreign exchange rate in
Slide 70: Our largest customers have grown even larger
Our largest customers $1M-$5M $5M-$10M $10M-$20M $20M+ have grown even larger 909 135 # of Customers 1,093 Customers paying $1M+ annually 330 37 12 (33% CAGR between 2016-2020) 18 4 2016 2020 2016 2020 2016 2020 2016 2020 Note: Previously disclosed number of customers with ACV greater than $1 millio
Slide 71: Plenty of runway with existing customers
Plenty of runway with existing customers… ~5x Total ACV Potential Potential ACV (Existing Customers) (Existing Customers and Products) Legend Customers Today – Total Potential ACV Current ACV Customers Today – Total Existing ACV Note: Calculations performed by ServiceNow and based on certain employe
Slide 72: And a massive opportunity still ahead of us
And a massive opportunity still ahead of us ~35x Potential ACV (Whitespace) Total ACV Potential (Total Addressable Market) ~5x Total ACV Potential Potential ACV (Existing Customers) (Existing Customers and Products) Legend Whitespace (Potential New Customers) – Total Potential ACV Current ACV Custom
Slide 73: We're evolving our pricing to ease the buying process
We’re evolving our pricing to ease the buying process 4 Key Outcomes Simplify buying for Facilitate and Improve deal Built to last our customers ease expansion velocity pricing models Portfolio simplification ELAs for digital transformation Built to last Fulfiller Employee Engagement Point products
Slide 74: ServiceNow's Sales Efficiency Continues to Improve
ServiceNow’s Sales Efficiency(1) Continues to Improve Sales Efficiency(1) at Different Total Revenue Milestones 2020 Sales Efficiency(1): ServiceNow vs Peers(2) Legend First FY at $1B+ Revenue (2015)(3) 2.9X NOW Cloud software peers at scale average(2) 3.6X First FY at $2B+ Revenue (2018) 3.5X 2.8X
Slide 75: Disciplined investments drive consistent margin expansion
The efficiency of the Now Platform and Non-GAAP Operating Profit and Margin %(1) disciplined investments 25% US Dollars in Millions ($M)/Operating Margin % 20% 21% drive consistent margin 16% 18% expansion $1,121 50% $740 $528 $352 $221 2016 – 2020 CAGR Non-GAAP Operating Profit 2016 2017 2018 2019
Slide 76: With improving free cash flow leverage
…With improving free Non-GAAP Free Cash Flow and Margin %(1) cash flow leverage US Dollars in Millions ($M)/Free Cash Flow Margin % 32% 28% 28% 26% 23% $1,449 46% 2016 – 2020 CAGR Non-GAAP Free Cash Flow $492 $732 $971 $321 2016 2017 2018 2019 2020 (1) Non-GAAP Free cash flow is defined as net cash
Slide 77: ServiceNow generates an unmatched combination of growth and profitability at scale
Free Cash Flow Margin(1) Plus Total Revenue Growth Rate at Full Year Revenue Milestones Legend NOW(4) Cloud software peers at scale average(2) ServiceNow generates 70% an unmatched 64% 63% combination of growth 56% and profitability 53% at scale 44% First FY at $1B+ revenue(3) First FY at $2B+ reven
Slide 78: And that momentum continues in 2021: Strong Growth
And that momentum continues in 2021: Strong Growth Subscription Revenue Guidance Current RPO Guidance $4.6B $5.5B 27-28% 30% Growth Growth $4.3B $3.5B 2020 2021E Q2 2020 Q2 2021E Note: 2021 estimates based on the mid-point of guidance as of 4/28/21.
Slide 79: Sidebar: cRPO is a better leading indicator than Quarterly Billings
Sidebar: cRPO is a better leading indicator than Quarterly Billings Topline Metrics Comparison Normalized Subscription Billings(2) 45% Subscription Revenue Y/Y Subscription Billings Y/Y(1) cRPO Y/Y $80M of early payments $6.3B 40% 28% Normalized 35% Y/Y Growth 30% $4.9B 29% 25% 20% Q1 2019 Q2 2019 Q
Slide 80: And that momentum continues in 2021: Strong Free Cash Flow
And that momentum continues in 2021: Strong Free Cash Flow $1.7B 2021E Free Cash Flow 30% 2021E Free Cash Flow Margin Note: Free cash flow growth based off the 2021 guidance of 30% free cash flow margin provided on 4/28/21, with the assumption that professional services grows inline with the mid-poi
Slide 81: Priorities: continue to invest for strong, sustainable growth
Priorities: continue to invest for strong, sustainable growth ServiceNow is a market leader, setting the workflow standard for digital transformation 1 Committed to driving continued high growth at scale 2 Balanced with steady margin expansion Making disciplined investments in key areas to ensure th
Slide 82: 2024 Target operating model
2024 Target operating model Subscription Revenues Non-GAAP Operating Margin Non-GAAP Free Cash Flow $10B+ 26.5% 33% $5B of 300 bps 300 bps growth 23.5% 30% $5.5B 2021E 2024E 2021E 2024E 2021E 2024E <2% 19-20% Annual Dilution Non-GAAP Tax Rate Note: 2021 estimates based on the mid-point of guidance a
Slide 83: What do we look like at $10B in revenue
What do we look like at $10B in revenue
Slide 84: Workflow NNACV mix at $10B in revenue
Legend IT Workflows Customer and Employee Workflows Creator Workflows & Others 8% 13% 7% 20% Workflow NNACV mix 24% at $10B in revenue 35% 86% 63% 45% 2016 2020 2024E (1) Historical presentations disclosed net new ACV contribution across products and are not comparable to net new ACV contribution ac
Slide 85: Geo NNACV mix at $10B in revenue
Legend AMS EMEA APJ 8% 9% 13% 25% 24% Geo NNACV mix at 28% $10B in revenue 66% 67% 59% 2016 2020 2024E
Slide 86: Customer Mix at $10B in revenue
Customer Mix at $1M-$5M $5M-$10M $10M-$20M $20M+ $10B in revenue 1,600+ 300+ 2,000+ # of Customers 100+ 909 Customers paying $1M+ 40+ 135 annually by 2024 330 37 12 18 4 2016 2020 2024E 2016 2020 2024E 2016 2020 2024E 2016 2020 2024E Note: Previously disclosed number of customers with ACV greater th
Slide 87: But we aren't stopping at $10B…
But we aren’t stopping at $10B…
Slide 88: Targeting $15B+ by 2026
Targeting $15B+ by 2026 15 in 5 + $ Billion of Subscription Revenue Years to Reach Target
Slide 89: And we will get there doing the right thing
And we will get there doing the right thing
Slide 90: Our Global Impact Strategy: Key initiatives
Our Global Impact Strategy Workflow a better world IT Employee Customer Creator Workflows Workflows Changing the world one workflow at a time on the Now Platform Workflows Workflows Sustaining our planet Creating equitable opportunity Acting with integrity Champion a resource efficient, Make work mo
Slide 91: ServiceNow
servicenow
Slide 92: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation
Slide 93: GAAP to Non-GAAP Reconciliation – Billings and Normalized Billings
GAAP to Non-GAAP Reconciliation – Billings and Normalized Billings Q2-21E 2021E in millions (except %'s) Q1-19 Q2-19 Q3-19 Q4-19 2019 Q1-20 Q2-20 Q3-20 Q4-20 2020 Q1-21 Midpoint Midpoint GAAP Subscription Revenues $ 740 $ 781 $ 835 $ 899 $ 3,255 $ 995 $ 1,016 $ 1,091 $ 1,184 $ 4,286 $ 1,293 $ 1,293
Slide 94: GAAP to Non-GAAP Reconciliation – Sales and Marketing Expense
GAAP to Non-GAAP Reconciliation – Sales and Marketing Expense in millions 2013* 2014* 2015* 2016 2017 2018 2019 GAAP Sales and Marketing 195 341 498 $ 660 $ 895 $ 1,203 $ 1,534 (-) Sales and Marketing SBC 22 54 102 132 171 228 268 (-) Sales and Marketing Amort of Purchased 0 1 1 0 0 - 0 Intangibles
Slide 95: GAAP to Non-GAAP Reconciliation – Other
GAAP to Non-GAAP Reconciliation – Other in millions (except %'s) 2015* Margin* 2016 Margin 2017 Margin 2018 Margin 2019 Margin 2020 Margin Q1-21 Margin 2021E Margin GAAP Income (Loss) from Operations $ (166) (17%) $ (382) (27%) $ (64) (3%) $ (42) (2%) $ 42 1% $ 199 5% $ 97 7% N/A 4% (+) SBC 258 26%