NOWServiceNow, Inc.
Services-Prepackaged Software
- Revenue
- $13.3B
- 21% YoY
- Operating margin
- 13.7%
- 11% YoY
- EBITDA
- $2.6B
- 33% YoY
- Market cap
- $109.1B
- Employees
- 50,000
- $266K revenue each
- Net debt / EBITDA
- 1.2×
- $3.0B net debt
- AI in 10-K
- 25.2
- mentions per 10K words
Takeover score 5 of 13
Fixable underperformance 4 of 7
- TSR below peersYes5 of 5 years3+ of last 5 years
- High CEO pay despite TSRYes$39M medianMedian CEO pay ≥ $15M while TSR trails
- Earnings not backed by cashNo311% of net incomeCash flow under 80% of net income
- Dilutive SBCYes15% of revenueOver 10% of revenue
- Payouts exceed cash flowNo34% of cash flowBuybacks + dividends over cash flow
- Goodwill-heavyNo31% of assetsOver 40% of assets
- Shareholder dissentYes77% lowest supportAny vote under 80% support
Buyer economics 1 of 4
- Low revenue per employeeYes$266K · 17th pctBottom quartile of its SIC industry
- Quiet on AINo25.2 per 10K words · 99th pctBottom quartile of AI mentions in 10-Ks
- Net cashNo1.2× EBITDA net debtMore cash than debt, positive EBITDA
- Buyout-sizedNo$109.1B market capMarket cap $500M–$5B
Catalysts 0 of 2
- Active 13DNo0 filingsActive-intent 13D in 18 months
- Net insider sellingNo−$6M netNet sales over $10M in 12 months
Financials
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|---|---|
| Revenue | $5.9B | $7.2B | $9.0B | $11.0B | $13.3B | 21% |
| Operating income | $257M | $355M | $762M | $1.4B | $1.8B | 34% |
| Net income | $230M | $325M | $1.7B | $1.4B | $1.7B | 23% |
| Operating cash flow | $2.2B | $2.7B | $3.4B | $4.3B | $5.4B | 28% |
| Capex | $392M | $550M | $694M | $852M | $868M | 1.9% |
| Stock-based comp | $1.1B | $1.4B | $1.6B | $1.7B | $2.0B | 12% |
| Buybacks | $0 | $0 | $538M | $696M | $1.8B | 164% |
Deal filings
None.
13D filers
None on file.
Insider trading
- Open-market buys, 12 mo
- $3M · 2
- Open-market sells, 12 mo
- $9M · 29
- Net
- −$6M
Pay vs performance
| Year | CEO total comp | Comp actually paid | TSR (indexed) | Peer TSR |
|---|---|---|---|---|
| FY2025 | $52M | −$83M | 139 | 227 |
| FY2024 | $38M | $202M | 193 | 202 |
| FY2023 | $38M | $185M | 128 | 171 |
| FY2022 | $39M | −$76M | 71 | 109 |
| FY2021 | $166M | $136M | 118 | 150 |