ServiceNow Inc (NOW)

Net profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	1,731,000	1,586,000	1,424,000	400,000	325,000	201,000	184,000	223,000	230,000	221,145	171,003	153,003	119,003	700,884	728,624	676,545	627,000	34,989	2,796	-38,871
Revenue (ttm)	US$ in thousands	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	3,460,000	3,224,104	3,011,368	2,808,520
Net profit margin		19.30%	18.72%	17.76%	5.25%	4.49%	2.91%	2.79%	3.56%	3.90%	4.00%	3.31%	3.17%	2.63%	16.61%	18.43%	18.20%	18.12%	1.09%	0.09%	-1.38%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $1,731,000K ÷ $8,971,000K
= 19.30%

To analyze ServiceNow Inc's net profit margin, we can observe the trend over the past few quarters. The net profit margin represents the percentage of each dollar of revenue that results in net income.

From the data provided, we observe that the net profit margin has been gradually increasing over the recent quarters. In the most recent quarter, ending December 31, 2023, the net profit margin reached 19.30%, showing a consistent improvement compared to the previous quarters.

This positive trend suggests that ServiceNow Inc has been effectively managing its expenses and generating higher profits in relation to its revenue. This could be attributed to factors such as cost control measures, revenue growth, and operational efficiencies.

The significant improvement in net profit margin over the quarters indicates an enhanced profitability and financial performance for ServiceNow Inc, which may instil confidence in investors and stakeholders regarding the company's ability to generate sustainable profits.