ServiceNow Inc (NOW)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	8,697,000	8,292,000	7,871,000	7,475,000	7,050,000	6,654,000	6,293,000	5,977,000	5,672,000	5,387,000	5,118,000	4,835,000	4,543,000	4,274,000	4,012,000	3,770,000	3,532,000	3,301,529	3,086,569	2,884,326
Revenue (ttm)	US$ in thousands	10,984,000	10,464,000	9,955,000	9,478,000	8,971,000	8,474,000	8,017,000	7,619,000	7,245,000	6,919,000	6,600,000	6,257,000	5,895,000	5,531,000	5,171,000	4,833,000	4,519,000	4,220,337	3,954,170	3,717,074
Gross profit margin		79.18%	79.24%	79.07%	78.87%	78.59%	78.52%	78.50%	78.45%	78.29%	77.86%	77.55%	77.27%	77.07%	77.27%	77.59%	78.01%	78.16%	78.23%	78.06%	77.60%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $8,697,000K ÷ $10,984,000K
= 79.18%

ServiceNow Inc has shown a consistent improvement in its gross profit margin over the analyzed period. The gross profit margin has increased steadily from 77.60% as of March 31, 2020, to 79.18% as of December 31, 2024. This indicates that the company has been effectively managing its cost of goods sold relative to its revenue, resulting in a higher percentage of sales remaining after accounting for production costs. The increasing trend in gross profit margin signifies operational efficiency and potentially increasing profitability for ServiceNow Inc. It is important for investors and stakeholders to monitor this metric to assess the company's ability to generate profits from its core business activities.