ServiceNow is an American software technology company. The company develops solutions for companies and corporations with the help of which it will be easier to manage digital workflows. ServiceNow’s business model is platform-as-a-service. That is why, the company’s services are designed to provide remote support, such as IT service management, IT operations of large corporations, etc. #NOW provides its services with a monthly subscription.

Even though this segment has begun to develop relatively recently, the competition in it is quite serious. Some of ServiceNow’s main competitors are such companies as Salesforce, Oracle, Workday and others.

Revenue: $ 1.2B Q3 (+ 7% Q3)

Operating Income: $ 69M Q3 (+ 11% Q3)

Net income: $ 13M for the 3rd quarter (-70 %% for the quarter)

Earnings per share: $ 1.21, which is better than the forecast of $ 1.03

The crisis became an opportunity for the company to strengthen its positions in the sector and build up its client base.

Credit rating – BBB + (stable)

Income by region.

North America – 65.78%

EMEA – 25.02%

Asia and others – 9.20%

EPS forecast for the current quarter: $ 1.06

The company is doing very well under the current market conditions. After all, the pandemic led to the transfer of most of the staff to a remote work format. And #NOW develops solutions to simplify the management of digital business processes. Even after the end of all kinds of restrictions, companies will leave some of their employees remotely. Many tech giants have already announced this intention.

So #NOW is indeed a company with great potential even after the pandemic is over. The low profit margin is due to the fact that the company is growing – at this stage it is much more profitable to invest in research and development than to pay dividends to investors.

Experts of Aravana Capital Management with many years of experience will create for you an individual investment strategy based on your wishes.

Get advice on company shares