ServiceNow (NOW) is set to report Q4 results tonight after the close with a conference call to follow at 5pm ET. NOW reported Q3 results at 4:01pm. Current Capital IQ consensus stands at EPS of $0.23 on Revenue of $379 mln

Guidance

• Co issued in-line guidance for Q4, seeing Q4 revenues in the range of $376-381 mln vs. $377.5 mln Capital IQ Consensus Estimate.
  • Subscription revenues between $335 and $340 million, representing year-over-year growth between 37% and 39%. 
  • Professional services and other revenues of $41 million, representing year-over-year growth of 0%. 
• Q4 billings guidance: Total billings is expected to run between $474-479 mln, up 30-31% YoY.
  • Subscription billings between $427 and $431 million, representing year-over-year growth between 34% and 36%. 
  • Professional services and other billings between $47 and $48 million, representing year-over-year growth between -2% and 0%.
• Subscription gross margin of approximately 84%, professional services and other gross margin of approximately 16%, and overall gross margin of approximately 77%. 
• Operating margin of approximately 16%. 
• Free cash flow margin of approximately 30%. 

TECHS:

CRM Should see a residual impact from this report as well as their shares have been ticking up quietly the last couple of weeks.