ServiceNow Inc (NOW)
Net 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,425,000 | 1,336,000 | 1,146,000 | 1,928,000 | 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 |
| 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 |
| Net profit margin | 12.97% | 12.77% | 11.51% | 20.34% | 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% |
December 31, 2024 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $1,425,000K ÷ $10,984,000K
= 12.97%
The net profit margin of ServiceNow Inc has shown some fluctuations over the quarters. Starting from a relatively strong position of 18.20% in March 2020, the margin improved slightly to 18.43% in June 2020. However, it then experienced a decline to 16.61% in September 2020.
The net profit margin plummeted significantly to 2.63% in December 2020, which may have been a cause for concern among stakeholders. Subsequent quarters saw a gradual increase in the margin, reaching 3.17% in March 2021 and further improving to 3.31% in June 2021.
There was a notable uptick to 4.00% in September 2021, indicating a positive trend in profitability. However, the margin decreased slightly to 3.90% in December 2021.
Throughout 2022, the net profit margin fluctuated within a narrow range, ranging from 2.79% to 4.49%, suggesting a period of stability but without significant growth.
In the first quarter of 2023, there was a significant increase in the net profit margin to 5.25%, which continued to soar to 17.76% and 18.72% in the subsequent quarters. The margin rose further to 19.30% in December 2023 and peaked at 20.34% in March 2024.
However, the net profit margin experienced a noticeable decline in the following quarters, dropping to 11.51% in June 2024 and 12.77% in September 2024, before settling at 12.97% in December 2024.
Overall, the net profit margin of ServiceNow Inc exhibited varying trends, with periods of both growth and decline. It is important for the company to closely monitor and manage its profitability to sustain long-term financial health and meet the expectations of investors and other stakeholders.
Peer comparison
Dec 31, 2024