3 Must-See Items From ServiceNow's Earnings Report
Would you pay 77 times forward earnings, or 80 times free cash flow for a publicly traded company? In some cases, what may seem like exorbitant multiples are justified by the strength and quality of cash flow and earnings, plus the promise of further growth ahead.
ServiceNow (NYSE: NOW) is one of the largest players in the Software-as-a-Service (SaaS) space, sporting a market capitalization of $106 billion, and annual revenue of $4.5 billion. The company sells digital workflow software that facilitates task automation, with a focus on IT, customer, and employee workflows. Its fourth-quarter and full-year 2020 results, released on Jan. 27, illustrate many of the characteristics that caused investors to push shares up by 95% last year, despite lofty valuation metrics. Below, let's review three key items from the fourth-quarter report that support the long-term investment thesis for ServiceNow.
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Source Fool.com
