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Yahoo
14 hours ago
- Business
- Yahoo
SoFi is Playing to Win and Not Backing Down From the Fintech Fight
SoFi Technologies, Inc. SOFI isn't playing defense in the crowded fintech arena; it's going full throttle on scale and innovation to fuel profitability and dominate the next phase of financial services. In the first quarter of 2025, the company clocked a 20% year-over-year jump in net sales and an eye-popping 217% surge in net income, proving its business model is not just working—it's thriving. Now, SoFi is taking the fight deeper into the fintech trenches. The firm recently extended its $2 billion Loan Platform Business agreement with Fortress Investment Group, focusing on personal loans. This bold move isn't just about scale, it's strategic. SoFi is actively shifting toward fee-based revenues that require less capital and offer more flexibility, signaling a deliberate pivot from traditional lending to a more robust, recurring revenue ecosystem. Meanwhile, SoFi is keeping the innovation pedal floored. It launched two new credit cards — SoFi Everyday Cash Rewards and SoFi Essential Credit Card — cementing its footprint in consumer finance and locking users deeper into its ecosystem. It's not just about more products — it's about smarter ones that boost lifetime value and retention. No Safe Zones: SoFi Faces Block and Upstart SoFi isn't alone on this battlefield. It faces stiff competition from fintech peers like Block XYZ and Upstart UPST. Block, the powerhouse behind Square and Cash App, is firing on all cylinders with a well-oiled machine spanning consumer payment, business lending, and crypto. Block's vertically integrated model is a formidable threat to SoFi's expanding empire. Then there's Upstart, armed with AI-driven lending algorithms that are rewriting the rules of credit. With recent moves into auto and small-dollar loans, Upstart is gunning for legacy lenders — and SoFi's turf — with aggressive tech-first strategies. Upstart's AI risk modeling, similar to SoFi's data-driven approach via Nova Credit, adds even more heat to the competition. Bottom line? SoFi is not just surviving, it's swinging hard. In a market full of disruptors, SoFi's combination of smart partnerships, product expansion, and financial discipline makes it a fintech brawler ready to lead. SoFi Stock is Blazing: But is it Too Hot to Touch? SOFI is on a tear in 2025. Shares have soared 40% year to date, torching the industry's modest 7% gain. The market sees momentum. But here's the kicker: the valuation is just as aggressive. < Image Source: Zacks Investment Research SOFI is currently trading at a forward P/E of 53.41, more than double the industry average of 22.08. That kind of premium pricing screams confidence, but also demands flawless execution. No surprise it has a of F; this isn't a bargain-bin stock. < Image Source: Zacks Investment Research Still, there's a silver lining. Earnings estimates for 2025 have been ticking higher over the past 30 days, signaling growing analyst conviction that SoFi's strategy is paying off. Image Source: Zacks Investment Research Despite the bullish run and rising earnings optimism, the stock has a Zacks Rank #3 (Hold), a sign that the rocket ride may cool off in the short term as investors digest the valuation. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Business Wire
2 days ago
- Business
- Business Wire
ServiceNow Reports Second Quarter 2025 Financial Results
SANTA CLARA, Calif.--(BUSINESS WIRE)--ServiceNow (NYSE: NOW), the AI platform for business transformation, today announced financial results for its second quarter ended June 30, 2025, with subscription revenues of $3,113 million in Q2 2025, representing 22.5% year-over-year growth and 21.5% in constant currency. 'ServiceNow's outstanding second quarter results continue our long track record of elite level execution,' said ServiceNow Chairman and CEO Bill McDermott. 'Our beat-and-raise quarter showcases the mission-critical nature of the ServiceNow AI Platform. Every business process in every industry is being refactored for agentic AI. ServiceNow has never been more differentiated as a full stack agentic operating system for the enterprise.' As of June 30, 2025, current remaining performance obligations ('cRPO'), contract revenue that will be recognized as revenue in the next 12 months, was $10.92 billion, representing 24.5% year-over-year growth and 21.5% in constant currency. The company had 89 transactions over $1 million in net new annual contract value ('ACV') in Q2, and ended the quarter with 528 customers with more than $5 million in ACV, representing approximately 19.5% year-over-year growth. 'Q2 was a spectacular quarter across the board, as we significantly beat the high end of our guidance across all topline and profitability metrics,' said ServiceNow President and CFO Gina Mastantuono. 'Now Assist continued to surpass net new ACV expectations, fueled by an increase in both deal volume and size quarter-over-quarter, putting us firmly on track to hit our $1 billion ACV target by 2026. With a robust pipeline and expanding market opportunities, including strong momentum in CRM, we are well-positioned for the second half of the year.' Recent Business Highlights Innovation ServiceNow's annual Knowledge event in May more than doubled its combined in-person and online attendance year-over-year, showcasing 800+ sessions and introducing major innovations across AI, data, CRM, and enterprise operations to drive efficiency and business impact at scale. ServiceNow introduced AI Control Tower and AI Agent Fabric, providing organizations with a centralized system to govern, orchestrate, and scale AI agents across functions, along with new AI Agents for security and risk to help customers proactively resolve issues and maintain compliance. The company expanded its data capabilities with the launch of Workflow Data Network, a new partner ecosystem to unify data, improve governance, and fuel AI-powered decision-making with real-time intelligence. ServiceNow reimagined CRM for the AI era, launching new CRM AI Agents and expanded CPQ capabilities that enable businesses to sell, fulfill, and service customers from a single AI-powered platform to increase productivity and strengthen loyalty. To drive digital transformation across key functions at scale, ServiceNow introduced Core Business Suite, an AI-powered solution that integrates HR, procurement, finance, legal, and facilities operations into one unified experience for improved efficiency and faster time to value. ServiceNow introduced its Autonomous IT vision, powered by agentic AI. This marks a turning point in enterprise technology, where AI-powered autonomy becomes foundational – aimed at delivering zero downtime, zero outages, and greater operational resilience across the enterprise. The company launched ServiceNow University, a dynamic learner experience offering hundreds of courses and assessments to help individuals and teams build essential digital skills for an AI-driven world. ServiceNow today announced agentic workforce management, a new, innovative extension of end-to-end AI agent orchestration that will enable employees and AI agents to seamlessly and securely work together to deliver real business outcomes. Partnerships and Acquisitions Throughout the quarter, ServiceNow announced several partnerships to further strengthen its AI capabilities: ServiceNow and AWS launched a new solution to unify enterprise data through bi-directional data integration and automated workflow orchestration, eliminating silos and providing real-time insights for AI-driven action. ServiceNow and NVIDIA introduced a new class of intelligent AI agents, powered by the high-performance Apriel Nemotron 15B reasoning model which delivers lower latency, lower inference costs, and faster agentic AI. ServiceNow and UKG announced an integration between UKG's AI solutions and ServiceNow's AI Agent Fabric to modernize employee experiences and streamline tasks across HR, payroll, and workforce management. ServiceNow and Cisco deepened their partnership, including the integration of Cisco's AI Defense into ServiceNow's AI Control Tower, to help customers securely and efficiently adopt and scale AI by delivering unified solutions that enhance governance, bolster security and scalability, and reduce risk and complexity. In May 2025, ServiceNow announced its plans to acquire the deal closed in July 2025. powerful data catalog and data governance platform will be brought into the ServiceNow AI Platform to enhance AI agent understanding and deepen enterprise data intelligence and governance. Global and Industry Expansion Today, ServiceNow announced that it is partnering with CapZone Impact Investments to create a national network of next-gen digital solutions to modernize mission-critical manufacturing facilities. The first phase will transform legacy shipbuilding and bolster U.S. naval operations, powered by the ServiceNow AI Platform, in Mobile, Alabama. Earlier this month, ServiceNow announced it had teamed up with Ferrari as the Official Partner of the Ferrari Hypercar team. In addition to powering real-time race operations for Hypercar, Ferrari's One Digital Portal, built on ServiceNow, is connecting over 25,000 employees, dealers, suppliers, and platforms to support Ferrari's global operations. The company also launched the ServiceNow Protected Platform Singapore (SPP-SG), a new secure, regulatory-compliant cloud platform that will accelerate AI innovation and bolster data security for the Singapore government and regulated sectors. In addition, ServiceNow is collaborating with Nanyang Polytechnic (NYP) to fast-track AI skills development, allowing students to build AI solutions on the SPP-SG and contribute to Singapore's digital economy. Investment ServiceNow repurchased approximately 381,000 shares of its common stock for $361 million as part of its share repurchase program 1, with the primary objective of managing the impact of dilution. Of the authorized amount of $4.5 billion, approximately $2.6 billion remains available for future share repurchases. Recognition ServiceNow was named a Leader in The Forrester Wave™: Low-Code Platforms for Professional Developers, Q2 2025 2, achieving the highest scores possible in 12 criteria. For the first time, ServiceNow was recognized as a Leader in the IDC MarketScape: Worldwide Business Automation Platforms 2025 Vendor Assessment 3 and the inaugural IDC MarketScape: Worldwide FinOps Cloud Costs Optimization Multicloud 2025 Vendor Assessment 4, which we believe demonstrates our expansion into new markets. Additionally, ServiceNow was named a Leader in the IDC MarketScape: Worldwide Governance, Risk, and Compliance Software Vendor Assessment, 2025 5. As a testament to ServiceNow's market outperformance, ServiceNow earned a spot on the Fortune 500® list 6 for the third consecutive year. The company was also named to the Forbes Most Trusted and LinkedIn Top Companies lists, and recognized on Ethisphere's 2025 World's Most Ethical Companies. (1) The program does not have a fixed expiration date, may be suspended, or discontinued at any time, and does not obligate ServiceNow to acquire any amount of its common stock. The timing, manner, price, and amount of any repurchases will be determined by ServiceNow at its discretion and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations. (2) Source: The Forrester Wave™: Low-Code Platforms for Professional Developers, Q2 2025, Forrester Research, Inc., May 22, 2025 Forrester Disclaimer Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. For more information, read about Forrester's objectivity at (4) Source: IDC MarketScape: Worldwide FinOps Cloud Costs Optimization Multicloud 2025 Vendor Assessment (doc #US52991225, June 2025) (5) Source: IDC MarketScape: Worldwide Governance, Risk, and Compliance Software Vendor Assessment, 2025 (doc #US53615325, June 2025) (6) From Fortune ©2025 Fortune Media IP Limited. All rights reserved. Fortune and Fortune 500® are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse the products or services of, ServiceNow. Expand Second Quarter 2025 GAAP and Non-GAAP Results: The following table summarizes our financial results for the second quarter 2025: (1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled 'Statement Regarding Use of Non-GAAP Financial Measures' for an explanation of non-GAAP measures. (2) Refer to the table entitled 'GAAP to Non-GAAP Reconciliation' for a reconciliation of GAAP to non-GAAP measures. (3) Non-GAAP subscription revenues and total revenues are adjusted for constant currency by excluding effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts. Professional services and other revenues, cRPO, and RPO are adjusted only for constant currency. See the section entitled 'Statement Regarding Use of Non-GAAP Financial Measures' for an explanation of non-GAAP measures. Note: Numbers rounded for presentation purposes and may not foot. Expand Financial Outlook Our guidance includes GAAP and non‑GAAP financial measures. The non‑GAAP growth rates for subscription revenues are adjusted for constant currency by excluding the effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts, and the non-GAAP growth rates for cRPO are adjusted only for constant currency to provide better visibility into the underlying business trends. ServiceNow has a larger‑than‑average customer cohort scheduled to renew in Q4 2025. As a result, Q3 2025 will experience approximately 2 points of headwinds to cRPO growth as the contractual obligations wind down. We expect that cohort to renew in Q4 2025, at which time those headwinds will subside. As noted last quarter, U.S. Federal agencies are navigating changes, from tightening budgets to evolving mission demands. We expect those dynamics to continue into Q3 2025. We remain confident that our revised guidance appropriately reflects these trends and continues to set us up for success for the remainder of the year. The following table summarizes our guidance for the third quarter 2025: (1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled 'Statement Regarding Use of Non-GAAP Financial Measures' for an explanation of non-GAAP measures. (2) Refer to the table entitled 'Reconciliation of Non-GAAP Financial Guidance' for a reconciliation of GAAP to non-GAAP measures. (3) Guidance for GAAP subscription revenues and GAAP subscription revenues and cRPO growth rates are based on the 30-day average of foreign exchange rates for June 2025 for entities reporting in currencies other than U.S. Dollars. Expand The following table summarizes our guidance for the full-year 2025: (1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled 'Statement Regarding Use of Non-GAAP Financial Measures' for an explanation of non-GAAP measures. (2) Refer to the table entitled 'Reconciliation of Non-GAAP Financial Guidance' for a reconciliation of GAAP to non-GAAP measures. (3) GAAP subscription revenues and related growth rate for the future quarter included in our full-year 2025 guidance are based on the 30-day average of foreign exchange rates for June 2025 for entities reporting in currencies other than U.S. Dollars. Note: Numbers are rounded for presentation purposes and may not foot. Expand Conference Call Details The conference call will begin at 2 p.m. Pacific Daylight Time (21:00 GMT) on July 23, 2025. Interested parties may listen to the call by dialing (888) 330‑2455 (Passcode: 8135305), or if outside North America, by dialing (240) 789‑2717 (Passcode: 8135305). Individuals may access the live teleconference from this webcast. An audio replay of the conference call and webcast will be available two hours after its completion and will be accessible for 30 days. To hear the replay, interested parties may go to the investor relations section of the ServiceNow website or dial (800) 770‑2030 (Passcode: 8135305), or if outside North America, by dialing (647) 362‑9199 (Passcode: 8135305). Investor Presentation Details An investor presentation providing additional information, including forward-looking guidance, and analysis can be found at Upcoming Investor Conferences ServiceNow today announced that it will attend and have executives present at four upcoming investor conferences. These include: ServiceNow President and Chief Financial Officer Gina Mastantuono will participate in a fireside chat at the Stifel Tech Executive Summit on Tuesday, August 26, 2025, at 9:30 a.m. PDT. ServiceNow President, Chief Product Officer, and Chief Operating Officer Amit Zavery will participate in a fireside chat at the Deutsche Bank Technology Conference on Wednesday, August 27, 2025, at 1:15 p.m. PDT. ServiceNow President and Chief Financial Officer Gina Mastantuono will participate in a fireside chat at the Citi Global TMT Conference on Wednesday, September 3, 2025, at 9:50 a.m. PDT. ServiceNow Chairman and Chief Executive Officer Bill McDermott will participate in a keynote at the Goldman Sachs Communacopia + Technology Conference on Wednesday, September 10, 2025, at 11:30 a.m. PDT. The live webcast for each will be accessible on the investor relations section of the ServiceNow website at and archived on the ServiceNow site for a period of 30 days. Statement Regarding Use of Non-GAAP Financial Measures We use the following non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Revenues. We adjust revenues and related growth rates for constant currency to provide a framework for assessing how our business performed excluding the effect of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts that are reported in the current and comparative period. To exclude the effect of foreign currency rate fluctuations, current period results for entities reporting in currencies other than U.S. Dollars ('USD') are converted into USD at the average exchange rates in effect during the comparison period (for Q2 2024, the average exchange rates in effect for our major currencies were 1 USD to 0.93 Euros and 1 USD to 0.79 British Pound Sterling ('GBP')), rather than the actual average exchange rates in effect during the current period (for Q2 2025, the average exchange rates in effect for our major currencies were 1 USD to 0.88 Euros and 1 USD to 0.75 GBP). Guidance for related growth rates is derived by applying the average exchange rates in effect during the comparison period, rather than the exchange rates for the guidance period, adjusted for any foreign currency hedging effects. We believe the presentation of revenues and related growth rates adjusted for constant currency facilitates the comparison of revenues year-over-year. Remaining performance obligations and current remaining performance obligations. We adjust cRPO and remaining performance obligations ('RPO') and related growth rates for constant currency to provide a framework for assessing how our business performed. To present this information, current period results for entities reporting in currencies other than USD are converted into USD at the exchange rates in effect at the end of the comparison period (for Q2 2024, the end of the period exchange rates in effect for our major currencies were 1 USD to 0.93 Euros and 1 USD to 0.79 GBP), rather than the actual end of the period exchange rates in effect during the current period (for Q2 2025, the end of the period exchange rates in effect for our major currencies were 1 USD to 0.85 Euros and 1 USD to 0.73 GBP). Guidance for the related growth rate is derived by applying the end of period exchange rates in effect during the comparison period rather than the exchange rates in effect during the guidance period. We believe the presentation of cRPO and RPO and related growth rates adjusted for constant currency facilitates the comparison of cRPO and RPO year-over-year, respectively. Gross profit, Income from operations, Net income and Net income per share - diluted. Our non-GAAP presentation of gross profit, income from operations, and net income measures exclude certain non-cash or non-recurring items, including stock-based compensation expense, amortization of purchased intangibles, legal settlements, business combination and other related costs including compensation expense, impairment of assets, severance costs, and income tax effects and adjustments. We believe these adjustments provide useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods. Free cash flow. Free cash flow is defined as net cash provided by operating activities plus cash outflows for legal settlements and business combination and other related costs including compensation expense, reduced by purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of total revenues. We believe information regarding free cash flow and free cash flow margin provides useful information to investors because it is an indicator of the strength and performance of our business operations. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP and non-GAAP results for gross profit, income from operations, net income, net income per share, and free cash flow. Use of Forward-Looking Statements This release contains 'forward-looking statements' regarding our performance, including but not limited to statements in the section entitled 'Financial Outlook' and statements regarding the expected benefits of our announced partnerships. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. Factors that may cause actual results to differ materially from those in any forward-looking statements include, among others, experiencing an actual or perceived cyber-security event or weakness; our ability to comply with evolving privacy laws, data transfer restrictions, and other foreign and domestic standards related to data and the Internet; errors, interruptions, delays or security breaches in or of our service or data centers; our ability to maintain and attract key employees and manage workplace culture; alleged violations of laws and regulations, including those relating to anti-bribery and anti-corruption and those relating to public sector contracting requirements; our ability to compete successfully against existing and new competitors; our ability to predict, prepare for and respond promptly to rapidly evolving technological, market and customer developments; our ability to grow our business, including converting remaining performance obligations into revenue, adding and retaining customers, selling additional subscriptions to existing customers, selling to larger enterprises, government and regulated organizations with complex sales cycles and certification processes, and entering new geographies and markets; our ability to develop and gain customer demand for and acceptance of existing, new and improved products and services, including products that incorporate AI technology; our ability to expand and maintain our partnerships and partner programs, including expected market opportunity from such relationships, and realize the anticipated benefits thereof; global macroeconomic and political conditions including tariffs, inflation and armed conflicts; fluctuations in the value of foreign currencies relative to the U.S. Dollar; fluctuations in interest rates; our ability to consummate and realize the benefits of any strategic transactions or acquisitions; our ability to execute share repurchases, including the timing, manner, price, and amount of any repurchase; and fluctuations and volatility in our stock price. Further information on these and other factors that could affect our financial results are included in our Form 10-K for the year ended December 31, 2024, and in other filings we make with the Securities and Exchange Commission from time to time. We undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts' expectations, or to provide interim reports or updates on the progress of the current financial quarter. About ServiceNow ServiceNow (NYSE: NOW) is putting AI to work for people. We move with the pace of innovation to help customers transform organizations across every industry while upholding a trustworthy, human centered approach to deploying our products and services at scale. Our AI platform for business transformation connects people, processes, data, and devices to increase productivity and maximize business outcomes. For more information, visit: © 2025 ServiceNow, Inc. All rights reserved. ServiceNow, the ServiceNow logo, Now, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc. in the United States and/or other countries. Other company names, product names, and logos may be trademarks of the respective companies with which they are associated. ServiceNow, Inc. Condensed Consolidated Balance Sheets (in millions) December 31, 2024 (unaudited) Assets Current assets: Cash and cash equivalents $ 3,124 $ 2,304 Short-term investments 3,008 3,458 Accounts receivable, net 1,696 2,240 Current portion of deferred commissions 551 517 Prepaid expenses and other current assets 896 668 Total current assets 9,275 9,187 Deferred commissions, less current portion 1,017 999 Long-term investments 4,655 4,111 Property and equipment, net 1,985 1,763 Operating lease right-of-use assets 818 693 Intangible assets, net 319 209 Goodwill 1,778 1,273 Deferred tax assets 1,340 1,385 Other assets 864 763 Total assets $ 22,051 $ 20,383 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 211 $ 68 Accrued expenses and other current liabilities 1,378 1,369 Current portion of deferred revenue 6,802 6,819 Current portion of operating lease liabilities 104 102 Total current liabilities 8,495 8,358 Deferred revenue, less current portion 110 95 Operating lease liabilities, less current portion 815 687 Long-term debt, net 1,490 1,489 Other long-term liabilities 209 145 Stockholders' equity 10,932 9,609 Total liabilities and stockholders' equity $ 22,051 $ 20,383 Expand ServiceNow, Inc. Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Cash flows from operating activities: Net income $ 385 $ 262 $ 845 $ 609 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 172 136 332 266 Amortization of deferred commissions 148 132 293 263 Stock-based compensation 499 444 969 866 Deferred income taxes 16 24 48 52 Other 58 (7 ) 62 (25 ) Changes in operating assets and liabilities, net of effect of business combinations: Accounts receivable (302 ) (216 ) 599 499 Deferred commissions (136 ) (141 ) (291 ) (306 ) Prepaid expenses and other assets (83 ) (146 ) (222 ) (252 ) Accounts payable (101 ) 65 133 172 Deferred revenue (116 ) (82 ) (264 ) (92 ) Accrued expenses and other liabilities 176 149 (111 ) (91 ) Net cash provided by operating activities $ 716 $ 620 $ 2,393 $ 1,961 Cash flows from investing activities: Purchases of property and equipment (190 ) (262 ) (395 ) (397 ) Business combinations, net of cash acquired (58 ) (31 ) (76 ) (41 ) Purchases of other intangibles — (9 ) (34 ) (30 ) Purchases of investments (1,182 ) (1,055 ) (2,322 ) (2,660 ) Purchases of non-marketable investments (134 ) (46 ) (138 ) (88 ) Sales and maturities of investments 1,100 1,040 2,281 2,113 Other 41 (8 ) 44 (2 ) Net cash used in investing activities $ (423 ) $ (371 ) $ (640 ) $ (1,105 ) Cash flows from financing activities: Proceeds from employee stock plans — — 153 131 Repurchases of common stock (361 ) — (659 ) (175 ) Taxes paid related to net share settlement of equity awards (185 ) (137 ) (438 ) (352 ) Business combination — — — (184 ) Net cash used in financing activities $ (546 ) $ (137 ) $ (944 ) $ (580 ) Foreign currency effect on cash, cash equivalents and restricted cash 9 (9 ) 14 (13 ) Net change in cash, cash equivalents and restricted cash (244 ) 103 823 263 Cash, cash equivalents and restricted cash at beginning of period 3,377 2,064 2,310 1,904 Cash, cash equivalents and restricted cash at end of period $ 3,133 $ 2,167 $ 3,133 $ 2,167 Expand ServiceNow, Inc. GAAP to Non-GAAP Reconciliation (in millions, except per share data) (unaudited) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Gross profit: GAAP subscription gross profit $ 2,488 $ 2,073 $ 4,932 $ 4,155 Stock-based compensation 76 62 144 120 Amortization of purchased intangibles 23 21 43 42 Severance costs 3 — 3 — Non-GAAP subscription gross profit $ 2,590 $ 2,156 $ 5,122 $ 4,317 GAAP professional services and other gross (loss) profit $ 3 $ 2 $ (4 ) $ 3 Stock-based compensation 11 12 22 24 Severance costs — — — — Non-GAAP professional services and other gross profit $ 14 $ 14 $ 18 $ 27 GAAP gross profit $ 2,491 $ 2,075 $ 4,928 $ 4,158 Stock-based compensation 87 74 166 144 Amortization of purchased intangibles 23 21 43 42 Severance costs 3 — 3 — Non-GAAP gross profit $ 2,604 $ 2,170 $ 5,140 $ 4,344 Gross margin: GAAP subscription gross margin 80 % 81.5 % 80.5 % 82 % Stock-based compensation as % of subscription revenues 2.5 % 2.5 % 2.5 % 2.5 % Amortization of purchased intangibles as % of subscription revenues 0.5 % 1 % 0.5 % 1 % Severance costs as % of subscription revenues — % — % — % — % Non-GAAP subscription gross margin 83 % 85 % 83.5 % 85 % GAAP professional services and other gross margin 3 % 2 % (2.5 %) 1.5 % Stock-based compensation as % of professional services and other revenues 11 % 13.5 % 12 % 14 % Severance costs as % of professional services and other revenues — % — % — % — % Non-GAAP professional services and other gross margin 14 % 15.5 % 9.5 % 15.5 % GAAP gross margin 77.5 % 79 % 78 % 79.5 % Stock-based compensation as % of total revenues 2.5 % 3 % 2.5 % 2.5 % Amortization of purchased intangibles as % of total revenues 0.5 % 1 % 0.5 % 1 % Severance costs as % of total revenues — % — % — % — % Non-GAAP gross margin 81 % 82.5 % 81.5 % 83 % Income from operations: GAAP income from operations $ 358 $ 240 $ 809 $ 572 Stock-based compensation 499 444 969 866 Amortization of purchased intangibles 25 24 46 48 Business combination and other related costs 14 12 25 25 Impairment of assets 30 — 30 — Severance costs 29 — 29 — Non-GAAP income from operations $ 955 $ 720 $ 1,908 $ 1,511 Operating margin: GAAP operating margin 11 % 9 % 13 % 11 % Stock-based compensation as % of total revenues 15.5 % 17 % 15.5 % 16.5 % Amortization of purchased intangibles as % of total revenues 1 % 1 % 0.5 % 1 % Business combination and other related costs as % of total revenues 0.5 % 0.5 % 0.5 % 0.5 % Impairment of assets as % of total revenues 1 % — % 0.5 % — % Severance costs as % of total revenues 1 % — % 0.5 % — % Non-GAAP operating margin 29.5 % 27.5 % 30.5 % 29 % Net income: GAAP net income $ 385 $ 262 $ 845 $ 609 Stock-based compensation 499 444 969 866 Amortization of purchased intangibles 25 24 46 48 Business combination and other related costs 14 12 25 25 Impairment of assets 30 — 30 — Severance costs 29 — 29 — Income tax effects and adjustments (1) (128 ) (91 ) (244 ) (190 ) Non-GAAP net income $ 854 $ 651 $ 1,700 $ 1,358 Net income per share - basic and diluted: GAAP net income per share - basic $ 1.86 $ 1.27 $ 4.08 $ 2.97 GAAP net income per share - diluted $ 1.84 $ 1.26 $ 4.04 $ 2.93 Non-GAAP net income per share - basic $ 4.13 $ 3.16 $ 8.22 $ 6.61 Non-GAAP net income per share - diluted $ 4.09 $ 3.13 $ 8.12 $ 6.54 Weighted-average shares used to compute net income per share - basic 207 206 207 205 Weighted-average shares used to compute net income per share - diluted 209 208 209 208 Free cash flow: GAAP net cash provided by operating activities $ 716 $ 620 $ 2,393 $ 1,961 Purchases of property and equipment (190 ) (262 ) (395 ) (397 ) Business combination and other related costs 9 1 14 20 Non-GAAP free cash flow $ 535 $ 359 $ 2,012 $ 1,584 Free cash flow margin: GAAP net cash provided by operating activities as % of total revenues 22.5 % 23.5 % 38 % 37.5 % Purchases of property and equipment as % of total revenues (6 %) (10 %) (6.5 %) (7.5 %) Business combination and other related costs as % of total revenues 0.5 % — % — % 0.5 % Non-GAAP free cash flow margin 16.5 % 13.5 % 32 % 30.5 % Expand (1) We use a non-GAAP effective tax rate for evaluating our operating results to provide consistency across reporting periods. Based on our long-term projections, we are using a non-GAAP tax rate of 20% for each of the three and six months ended June 30, 2025 and 2024. This non-GAAP tax rate could change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate. Note: Numbers are rounded for presentation purposes and may not foot. Expand
Axios
3 days ago
- Politics
- Axios
Help select 30th Street Station's newest monument
The new monument set for 30th Street Station is coming into focus. Why it matters: The memorial for the station's namesake — deceased U.S. Rep. William H. Gray III — will likely become a landmark and meeting spot inside the busy transit hub. Driving the news: The finalists presented their proposed designs Tuesday at the Cira Centre skyscraper near the station. The memorial will stand just steps inside the station's grand 30th Street entrance, becoming among the first site people see when they enter the massive hall. The public is invited to leave feedback on the designs on the foundation's website. Context: Gray was a congressman between 1979 and 1991 for the 2nd District in Philly. He became the first African American to lead the U.S. House's influential Budget Committee. Gray also served as minister of Philly's Bright Hope Baptist Church for years. The station was named after him in 2020. The big picture: The station is in the midst of a yearslong major overhaul, which is expected to wrap up in 2027. The William H. Gray III Memorial Foundation is leading the statue effort. What's next: The foundation's advisory committee will survey the public feedback and other criteria to select a winning design, which is expected in the fall. Installation could be finished as soon as summer 2026 in time for the city's celebrations and events tied to the nation's 250th birthday. The design options Nekisha Durrett's "Crystal Stair" Nina Cooke John's "Justice Interlaced" Paul Ramírez Jonas' "Our Ancestors Knew We Were Coming" Karyn Olivier's "Platform" Hank Willis Thomas' "Reverence"
RTÉ News
3 days ago
- Entertainment
- RTÉ News
Cillian Murphy-starring Steve to have world premiere at Toronto International Film Festival
The Cillian Murphy-starring Steve is to receive its world premiere at the Toronto International Film Festival (TIFF) in September, where it will compete as part of the festival's Platform programme. The Platform programme is described as "a first glimpse at some of the most compelling cinematic voices on the rise" and champions "bold directorial vision and distinctive storytelling". The Platform Award is the only juried prize at the Toronto International Film Festival, which runs from 4 to 14 September. The school-based drama Steve reunites Murphy with Small Things Like These director Tim Mielants and co-star Emily Watson. The film will be released in selected Irish cinemas in September and will arrive on Netflix on 3 October. Steve is described as "a reimagining" of Max Porter's best-selling novel Shy. The British author has written the screenplay and is also the film's executive producer. "The film follows a pivotal day in the life of headteacher Steve (Academy Award winner Cillian Murphy) and his students at a last-chance reform school amidst a world that has forsaken them," says Netflix. "As Steve fights to protect the school's integrity and impending closure, we witness him grappling with his own mental health. "In parallel to Steve's struggles, we meet Shy (Jay Lycurgo), a troubled teen caught between his past and what lies ahead as he tries to reconcile his inner fragility with his impulse for self-destruction and violence." Joining Murphy, Watson, and newcomer Lycurgo in Steve are Tracey Ullman (The Tracey Ullman Show, Mrs America) and Simbi Ajikawo (Top Boy) aka rapper Little Simz. Having launched their company Big Things Films with the acclaimed adaptation of Claire Keegan's bestseller Small Things Like These, Murphy and his production partner Alan Moloney are releasing Steve as their second feature. Murphy and author Porter previously collaborated on the stage adaptation of Porter's Grief is the Thing with Feathers and the short film All of This Unreal Time. "I just adore Max's writing and the thing his writing does for me, which Claire Keegan's writing does as well - and it's something I've always chased down in writing - is something that has an actual visceral effect on you, an emotional effect," the Cork actor told entertainment trade publication Deadline when Steve was first announced in February 2024. "I remember reading Foster, Claire's short story, I remember actually crying reading the book and having to put my hood up on the train to try to hide, I was so embarrassed. "And then Shy was also that book. Max gave me that book in a proof edition before he finished it, and again it just broke my heart. They're the sorts of things I love as a reader and as a performer, so I really wanted to do something with him."
Winnipeg Free Press
3 days ago
- Entertainment
- Winnipeg Free Press
‘Nino,' ‘The Hen' and other avant-garde films that TIFF programmers are obsessed with
TORONTO – A French film about a young man facing a devastating diagnosis and a portrait of humanity from the perspective of a chicken are among the movies in the Toronto International Film Festival's competitive Platform program. TIFF announced contenders for the $20,000 prize on Tuesday ahead of the festival's 50th edition in September. It's also the 10th anniversary of Platform, which programmer Robyn Citizen says was developed to spotlight 'bold directorial visions' at the vanguard of filmmaking. This year's lineup includes 'Nino,' the Pauline Loquès' directorial debut that had its world premiere at Cannes earlier this year. Citizen describes the film as a character study of a twentysomething, portrayed by Quebec's Théodore Pellerin, who is diagnosed with cancer and reflects on life while wandering around Paris. The program also includes 'Hen,' a live-action film from Hungarian director György Pálfi that follows a chicken that escapes a grisly fate and tries to build a new life. TIFF programmer Dorota Lech says 'Hen' also offers a look at Europe's migration crisis through the hen's eyes. 'This is live action. It's not animated in any way,' Lech said on a video call with reporters last week. 'I honestly have no idea how he made it because there is so much drama in that chicken's eyes and behaviour. I'm obsessed with this film and thrilled that it's in Platform.' An international jury will choose the Platform winner, to be announced at TIFF's closing awards ceremony on Sept. 14. The program also includes a film from Mi'kmaq director Bretten Hannam, 'Sk+te'kmujue'katik (At the Place of Ghosts).' The Canada/Belgium production has elements of horror and magical realism, but Citizen says it's a family drama at heart. It's about two Indigenous brothers who reconnect in the forest near their home to confront someone from their past, who is visualized in the film as a monster. 'Bretten's view of the natural world and how they integrate their characters in it is what makes their work exceptional,' Citizen said. Opening the Platform program this year is 'Steve,' a film from Belgian director Tim Mielants starring Cillian Murphy as the headmaster of a reform school for boys. TIFF runs Sept. 4 to 14. On Monday, festival organizers dropped their most robust announcement to date, touting films from big-name directors including Guillermo del Toro's 'Frankenstein,' Benny Safdie's 'The Smashing Machine' and Scarlett Johansson's feature directorial debut 'Eleanor the Great.' This report by The Canadian Press was first published July 22, 2025.
