ServiceNow Inc., adjustment to net income

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income (as reported)	1,425)	1,731)	325)	230)	119)
Add: Unrealized gains (losses) on investments, net of tax	12)	38)	(66)	(19)	3)
Net income (adjusted)	1,437)	1,769)	259)	211)	121)

Download chart

ServiceNow Inc., adjusted profitability ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	12.97%	19.30%	4.49%	3.90%	2.62%
Adjusted net profit margin	13.08%	19.72%	3.57%	3.58%	2.68%
Return on Equity (ROE)
Reported ROE	14.83%	22.69%	6.46%	6.22%	4.18%
Adjusted ROE	14.95%	23.19%	5.15%	5.71%	4.28%
Return on Assets (ROA)
Reported ROA	6.99%	9.96%	2.44%	2.13%	1.36%
Adjusted ROA	7.05%	10.17%	1.95%	1.95%	1.39%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	ServiceNow Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	ServiceNow Inc. adjusted ROE improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	ServiceNow Inc. adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Download chart

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	1,425)	1,731)	325)	230)	119)
Revenues	10,984)	8,971)	7,245)	5,896)	4,519)
Profitability Ratio
Net profit margin¹	12.97%	19.30%	4.49%	3.90%	2.62%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	1,437)	1,769)	259)	211)	121)
Revenues	10,984)	8,971)	7,245)	5,896)	4,519)
Profitability Ratio
Adjusted net profit margin²	13.08%	19.72%	3.57%	3.58%	2.68%

2024 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × 1,425 ÷ 10,984 = 12.97%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 1,437 ÷ 10,984 = 13.08%

Download chart

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	ServiceNow Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	1,425)	1,731)	325)	230)	119)
Stockholders’ equity	9,609)	7,628)	5,032)	3,695)	2,834)
Profitability Ratio
ROE¹	14.83%	22.69%	6.46%	6.22%	4.18%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	1,437)	1,769)	259)	211)	121)
Stockholders’ equity	9,609)	7,628)	5,032)	3,695)	2,834)
Profitability Ratio
Adjusted ROE²	14.95%	23.19%	5.15%	5.71%	4.28%

2024 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,425 ÷ 9,609 = 14.83%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 1,437 ÷ 9,609 = 14.95%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	ServiceNow Inc. adjusted ROE improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	1,425)	1,731)	325)	230)	119)
Total assets	20,383)	17,387)	13,299)	10,798)	8,715)
Profitability Ratio
ROA¹	6.99%	9.96%	2.44%	2.13%	1.36%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	1,437)	1,769)	259)	211)	121)
Total assets	20,383)	17,387)	13,299)	10,798)	8,715)
Profitability Ratio
Adjusted ROA²	7.05%	10.17%	1.95%	1.95%	1.39%

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,425 ÷ 20,383 = 6.99%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 1,437 ÷ 20,383 = 7.05%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	ServiceNow Inc. adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

ServiceNow Inc. (NYSE:NOW)

Analysis of Investments