ServiceNow (NOW) 8-K ServiceNow Reports Financial Results for Fourth Quarter and Fiscal Year 2015

Exhibit 99.1

ServiceNow Reports Financial Results for Fourth Quarter and Fiscal Year 2015

SANTA CLARA, Calif.--(BUSINESS WIRE)--January 27, 2016--ServiceNow® (NYSE:NOW), the enterprise cloud company, today announced the financial results for its fourth quarter and fiscal year 2015.

Fourth Quarter 2015 Results:

• Total revenues of $285.7 million, an increase of 44% year-over-year and 51% in constant currency.
• GAAP net loss of $37.4 million, or loss of $0.23 per basic and diluted share, compared to a GAAP net loss of $44.7 million, or loss of $0.30 per basic and diluted share, in the fourth quarter of 2014.
• Non-GAAP net income of $32.6 million, or income of $0.20 per basic share and $0.19 per diluted share, compared to a non-GAAP net income of $4.9 million, or income of $0.03 per basic and diluted share, in the fourth quarter of 2014 (see the table entitled "Results of Operations GAAP to Non-GAAP Reconciliation” for a reconciliation of these GAAP and non-GAAP financial measures).
• Billings were $365.7 million, an increase of 33% year-over-year and 39% in constant currency, (see the table entitled "Results of Operations GAAP to Non-GAAP Reconciliation” for a reconciliation of non-GAAP billings to GAAP revenues).
• Free cash flow was $80.2 million, an increase of 107% year-over-year.

Fiscal Year 2015 Results:

• Total revenues of $1.0 billion, an increase of 47% year-over-year and 56% in constant currency.
• GAAP net loss of $198.4 million, or loss of $1.27 per basic and diluted share, compared to a GAAP net loss of $179.4 million, or loss of $1.23 per basic and diluted share, in the prior year.
• Non-GAAP net income of $67.4 million, or income of $0.43 per basic share and $0.40 per diluted share, compared to non-GAAP net loss of $10.0 million, or loss of $0.07 per basic and diluted share, in the prior year (see the table entitled "Results of Operations GAAP to Non-GAAP Reconciliation” for a reconciliation of these GAAP and non-GAAP financial measures).
• Billings were $1.2 billion, an increase of 41% year-over-year and 50% in constant currency (see the table entitled “Results of Operations GAAP to Non-GAAP Reconciliation” for a reconciliation of non-GAAP billings to GAAP revenues).
• Free cash flow was $227.6 million, an increase of 169% year-over-year.

“We marked a huge milestone in 2015, becoming only the second enterprise SaaS company to surpass $1 billion in revenue,” said Frank Slootman, president and chief executive officer, ServiceNow. “This was our largest quarter yet for net new annualized contract value, punctuated by 26 net new Global 2000 customers in the quarter.”

Financial Outlook

The financial guidance discussed below is on a non-GAAP basis, except for revenues and headcount, and excludes stock-based compensation expense, amortization of intangibles, and business combination related expenses (see table which reconciles these non-GAAP financial measures to the related GAAP measures). For the first quarter of 2016, we expect:

• Total revenues between $298 and $303 million, representing year-over-year growth between 41% and 43%, and 42% and 44% in constant currency. Our total revenues estimate consists of subscription revenues between $261 and $265 million and professional services and other revenues between $37 and $38 million.
• Billings between $360 and $365 million, representing year-over-year growth between 34% and 36%, and 36% and 38% in constant currency.
• Subscription gross margin of approximately 83%, professional services and other gross margin of approximately 9% and overall gross margin of approximately 73%.
• Operating margin and free cash flow margin of approximately 5% and 21%, respectively.
• Weighted average shares used to compute diluted net income per share of approximately 173 million shares.

For the full year 2016, we expect:

• Total revenues between $1.34 and $1.37 billion, representing year-over-year growth between 33% and 36%, and 34% and 37% in constant currency. Our total revenues estimate consists of subscription revenues between $1.18 and $1.20 billion and professional services and other revenues between $160 and $170 million.
• Billings of approximately $1.6 billion, representing year-over-year growth of 33% and 34% in constant currency.
• Operating margin and free cash flow margin of approximately 12% and 24%, respectively.
• Weighted average shares used to compute diluted net income per share of approximately 177 million shares.
• Net headcount additions of approximately 1,000.

“We now have 230 customers each paying us more than $1 million in annualized contract value, a 50% increase year-over-year,” said Michael Scarpelli, chief financial officer, ServiceNow. “We expect to continue to show meaningful free cash flow generation at scale, as seen by our 24% free cash flow margin guidance in 2016.”

Conference Call Details

The conference call will begin at 2 p.m. Pacific Time (22:00 GMT) on Wednesday, Jan. 27, 2016. Interested parties may listen to the call by dialing 877.280.4958 (passcode: 88267404), or if outside North America, by dialing + 1.857.244.7315 (passcode: 88267404). Individuals may access the live teleconference from the investor relations section of the ServiceNow website at http://investors.servicenow.com.

An audio replay of the conference call and webcast will be available three 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 888.286.8010 (passcode: 10750035), or if outside North America, by dialing +1.617.801.6888 (passcode: 10750035).

Statement regarding use of non-GAAP financial measures

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.

Our financial measures under GAAP include foreign currency impact, stock-based compensation expense, the amortization of debt discount and issuance costs related to the convertible senior notes, amortization of intangibles and business combination related expenses, and the related income tax effect of these adjustments. We believe the presentation of operating results that exclude these items provides useful supplemental information to investors and facilitates the analysis of our core operating results and comparison of operating results across reporting periods.

Free cash flow, which is a non-GAAP financial measure, is calculated as GAAP net cash provided by operating activities reduced by purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of revenues. We believe information regarding free cash flow and free cash flow margin provide investors with an important perspective on the cash available to invest in our business and fund ongoing operations. However, our calculation of free cash flow and free cash flow margin may not be comparable to similar measures used by other companies.

Billings is calculated as revenue plus the change in total deferred revenue as presented on the statement of cash flows. We believe billings offers investors useful supplemental information regarding the performance of our business, and will help investors better understand the sales volumes and performance of our business.

We present constant currency information to provide a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. To present this information, current period results for entities reporting in currencies other than U.S. Dollars are converted into U.S. Dollars at the exchange rates in effect during the prior period presented, rather than the actual exchange rates in effect during the current period.

The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Please see the tables included at the end of this release for the reconciliation of GAAP and non-GAAP results.

Use of forward-looking statements

This release contains “forward-looking statements” regarding our performance, including but not limited to the section entitled “Financial Outlook.” 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.

Among the important factors that could cause actual results to differ materially from those in any forward-looking statements include: (i) errors, interruptions, delays, or security breaches in or of our service or web hosting, (ii) our ability to grow at our expected rate of growth, including our ability to convert deferred revenue and backlog into revenue, add and retain customers, sell additional subscriptions to existing customers and enter new geographies and markets, (iii) our ability to continue to release, and gain customer acceptance of, improved versions of our services, (iv) our ability to develop and gain customer acceptance of new products and services, including our platform, and (v) our ability to compete successfully against existing and new competitors.

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, 2014 and in other filings we make with the Securities and Exchange Commission from time to time, including our Form 10-K that will be filed for the year ended December 31, 2015.

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 is changing the way people work. With a service-orientation toward the activities, tasks and processes that make up day-to-day work life, we help the modern enterprise operate faster and be more scalable than ever before. Customers use our service model to define, structure and automate the flow of work, removing dependencies on email and spreadsheets to transform the delivery and management of services for the enterprise. ServiceNow enables service management for every department in the enterprise including IT, human resources, facilities, field service and more. We deliver a ‘lights-out, light-speed’ experience through our enterprise cloud – built to manage everything as a service. To find out how, visit www.servicenow.com.

ServiceNow and the ServiceNow logo are registered trademarks of ServiceNow. All other brand and product names are trademarks or registered trademarks of their respective holders.

ServiceNow, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
	Three Months Ended						Twelve Months Ended
	December 31, 2015			December 31, 2014			December 31, 2015			December 31, 2014
	(unaudited)						(unaudited)
Revenues:
Subscription	$	244,702		$	166,751		$	848,278		$	567,217
Professional services and other		40,948			31,253			157,202			115,346
Total revenues		285,650			198,004			1,005,480			682,563
Cost of revenues (1):
Subscription		49,511			40,330			183,400			142,687
Professional services and other		41,398			30,308			146,013			106,089
Total cost of revenues		90,909			70,638			329,413			248,776
Gross profit		194,741			127,366			676,067			433,787
Operating expenses (1):
Sales and marketing		133,909			95,764			498,439			341,119
Research and development		58,443			42,026			217,389			148,258
General and administrative		33,247			26,260			126,604			96,245
Total operating expenses		225,599			164,050			842,432			585,622
Loss from operations		(30,858	)		(36,684	)		(166,365	)		(151,835	)
Interest and other expense, net		(4,796	)		(6,562	)		(26,647	)		(23,705	)
Loss before provision for income taxes		(35,654	)		(43,246	)		(193,012	)		(175,540	)
Provision for income taxes		1,724			1,417			5,414			3,847
Net loss	$	(37,378	)	$	(44,663	)	$	(198,426	)	$	(179,387	)
Net loss per share - Basic and Diluted	$	(0.23	)	$	(0.30	)	$	(1.27	)	$	(1.23	)
Weighted-average shares used to compute net loss per share - Basic and Diluted		159,718,874			148,666,257			155,706,643			145,355,543
(1) Includes total stock-based compensation expense for stock-based awards as follows:
	Three Months Ended						Twelve Months Ended
	December 31, 2015			December 31, 2014			December 31, 2015			December 31, 2014
Cost of revenues:
Subscription	$	6,233		$	4,092		$	23,416		$	14,988
Professional services and other		6,477			3,928			23,265			13,116
Sales and marketing		27,659			17,624			102,349			54,006
Research and development		18,623			12,562			70,326			42,535
General and administrative		9,190			7,790			38,357			29,674

ServiceNow, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
	December 31, 2015		December 31, 2014
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	412,305	$	252,455
Short-term investments		388,945		416,336
Accounts receivable, net		203,333		159,171
Current portion of deferred commissions		51,976		43,232
Prepaid expenses and other current assets		29,076		35,792
Total current assets		1,085,635		906,986
Deferred commissions, less current portion		33,016		29,453
Long-term investments		422,667		266,772
Property and equipment, net		144,714		104,237
Intangible assets, net		43,005		54,526
Goodwill		55,669		55,016
Other assets		22,346		7,762
Total assets	$	1,807,052	$	1,424,752
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	37,369	$	17,829
Accrued expenses and other current liabilities		101,264		79,497
Current portion of deferred revenue		593,003		409,671
Total current liabilities		731,636		506,997
Deferred revenue, less current portion		10,751		12,567
Convertible senior notes, net		474,534		443,437
Other long-term liabilities		23,317		33,076
Stockholders’ equity		566,814		428,675
Total liabilities and stockholders’ equity	$	1,807,052	$	1,424,752

ServiceNow, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
	Three Months Ended						Twelve Months Ended
	December 31, 2015			December 31, 2014			December 31, 2015			December 31, 2014
	(unaudited)						(unaudited)
Cash flows from operating activities:
Net loss	$	(37,378	)	$	(44,663	)	$	(198,426	)	$	(179,387	)
Adjustments to reconcile net loss to net cash provided by operating activities:								—
Depreciation and amortization		16,399			13,325			60,356			42,059
Amortization of premiums on investments		1,684			2,040			7,064			8,084
Amortization of deferred commissions		17,486			14,872			65,541			51,270
Amortization of debt discount and issuance costs		7,973			7,451			31,097			29,059
Stock-based compensation		68,182			45,996			257,713			154,319
Tax benefit from employee stock plans		(1,482	)		(847	)		(2,663	)		(2,037	)
Deferred income tax		(1,282	)		(1,198	)		(1,282	)		(1,198	)
Other		(830	)		(2,496	)		(6,223	)		(4,469	)
Changes in operating assets and liabilities:
Accounts receivable		(45,552	)		(49,850	)		(50,855	)		(56,785	)
Deferred commissions		(25,974	)		(26,671	)		(80,142	)		(73,786	)
Prepaid expenses and other assets		(2,046	)		(3,154	)		(10,961	)		(5,540	)
Accounts payable		6,473			6,331			14,785			10,223
Deferred revenue		80,088			76,042			195,900			168,393
Accrued expenses and other liabilities		21,331			10,446			33,187			(1,305	)
Net cash provided by operating activities		105,072			47,624			315,091			138,900
Cash flows from investing activities:
Purchases of property and equipment		(24,893	)		(8,880	)		(87,481	)		(54,379	)
Business combination, net of cash acquired		—			—			(1,100	)		(99,813	)
Purchase of other intangibles		(1,750	)		—			(1,750	)		—
Purchases of investments		(169,615	)		(160,610	)		(712,782	)		(521,393	)
Purchases of strategic investments		(500	)		—			(10,500	)		—
Sale of investments		34,414			69,190			277,045			166,997
Maturities of investments		101,415			57,097			305,047			191,715
Restricted cash		186			—			(222	)		(55	)
Net cash used in investing activities		(60,743	)		(43,203	)		(231,743	)		(316,928	)
Cash flows from financing activities:
Proceeds from employee stock plans		20,001			14,998			93,348			69,396
Taxes paid related to net share settlement of equity awards		(192	)		(167	)		(12,795	)		(661	)
Tax benefit from employee stock plans		1,482			847			2,663			2,037
Payments on financing obligation		(111	)		—			(223	)		—
Net cash provided by financing activities		21,180			15,678			82,993			70,772
Foreign currency effect on cash and cash equivalents		(2,277	)		(2,730	)		(6,491	)		(6,592	)
Net increase/(decrease) in cash and cash equivalents		63,232			17,369			159,850			(113,848	)
Cash and cash equivalents at beginning of period		349,073			235,086			252,455			366,303
Cash and cash equivalents at end of period	$	412,305		$	252,455		$	412,305		$	252,455
Calculation of free cash flow (a non-GAAP measure):
Net cash provided by operating activities	$	105,072		$	47,624		$	315,091		$	138,900
Purchases of property and equipment		(24,893	)		(8,880	)		(87,481	)		(54,379	)
Free cash flow	$	80,179		$	38,744		$	227,610		$	84,521

ServiceNow, Inc.
Results of Operations GAAP to Non-GAAP Reconciliation
(in thousands, except share and per share data)
(Unaudited)
	Three Months Ended								Twelve Months Ended
	December 31, 2015			December 31, 2014			Growth rates	Constant currency growth rates (1)	December 31, 2015			December 31, 2014			Growth rates	Constant currency growth rates (1)
Revenues:
GAAP subscription revenues	$	244,702		$	166,751				$	848,278		$	567,217
GAAP professional services and other revenues		40,948			31,253					157,202			115,346
GAAP total revenues		285,650			198,004		44%	51%		1,005,480			682,563		47%	56%
Change in deferred revenue from Consolidated Statements of Cash Flows		80,088			76,042					195,900			168,393
Non-GAAP billings	$	365,738		$	274,046		33%	39%	$	1,201,380		$	850,956		41%	50%
Cost of revenues:
GAAP subscription cost of revenues	$	49,511		$	40,330				$	183,400		$	142,687
Add back:
Stock-based compensation		(6,233	)		(4,092	)				(23,416	)		(14,988	)
Amortization of intangibles (2)		(2,762	)		(2,865	)				(11,087	)		(6,225	)
Business combination and other related costs		—			—					—			(2	)
Non-GAAP subscription cost of revenues	$	40,516		$	33,373				$	148,897		$	121,472
GAAP professional services and other cost of revenues	$	41,398		$	30,308				$	146,013		$	106,089
Add back:
Stock-based compensation		(6,477	)		(3,928	)				(23,265	)		(13,116	)
Business combination and other related costs		—			—					—			(9	)
Non-GAAP professional services and other costs of revenues	$	34,921		$	26,380				$	122,748		$	92,964
Gross profit:
Non-GAAP subscription gross profit	$	204,186		$	133,378				$	699,381		$	445,745
Non-GAAP professional services and other gross profit		6,027			4,873					34,454			22,382
Non-GAAP gross profit	$	210,213		$	138,251				$	733,835		$	468,127
Operating expenses:
GAAP sales and marketing expenses	$	133,909		$	95,764				$	498,439		$	341,119
Add back:
Stock-based compensation		(27,659	)		(17,624	)				(102,349	)		(54,006	)
Amortization of intangibles		(145	)		(194	)				(581	)		(480	)
Business combination and other related costs		—			—					—			(13	)
Non-GAAP sales and marketing expenses	$	106,105		$	77,946				$	395,509		$	286,620
GAAP research and development expenses	$	58,443		$	42,026				$	217,389		$	148,258
Add back:
Stock-based compensation		(18,623	)		(12,562	)				(70,326	)		(42,535	)
Business combination and other related costs		—			—					—			(31	)
Non-GAAP research and development expenses	$	39,820		$	29,464				$	147,063		$	105,692
GAAP general and administrative expenses	$	33,247		$	26,260				$	126,604		$	96,245
Add back:
Stock-based compensation		(9,190	)		(7,790	)				(38,357	)		(29,674	)
Amortization of intangibles (2)		(23	)		(28	)				(93	)		(113	)
Business combination and other related costs		—			—					—			(1,117	)
Non-GAAP general and administrative expenses	$	24,034		$	18,442				$	88,154		$	65,341
GAAP total operating expenses	$	225,599		$	164,050				$	842,432		$	585,622
Add back:
Stock-based compensation		(55,472	)		(37,976	)				(211,032	)		(126,215	)
Amortization of intangibles (2)		(168	)		(222	)				(674	)		(593	)
Business combination and other related costs		—			—					—			(1,161	)
Non-GAAP total operating expenses	$	169,959		$	125,852				$	630,726		$	457,653
Income (loss) from operations:
GAAP loss from operations	$	(30,858	)	$	(36,684	)			$	(166,365	)	$	(151,835	)
Add back:
Stock-based compensation		68,182			45,996					257,713			154,319
Amortization of intangibles (2)		2,930			3,087					11,761			6,818
Business combination and other related costs		—			—					—			1,172
Non-GAAP income from operations	$	40,254		$	12,399				$	103,109		$	10,474
Interest and other income (expense)
GAAP interest and other expense, net	$	(4,796	)	$	(6,562	)			$	(26,647	)	$	(23,705	)
Add back:
Amortization of debt discount and issuance costs for the convertible senior notes		7,973			7,451					31,097			29,059
Non-GAAP interest and other income, net	$	3,177		$	889				$	4,450		$	5,354
Income/ (loss) before provision for income taxes
GAAP loss before provision for income taxes	$	(35,654	)	$	(43,246	)			$	(193,012	)	$	(175,540	)
Add back:
Stock-based compensation		68,182			45,996					257,713			154,319
Amortization of intangibles (2)		2,930			3,087					11,761			6,818
Business combination and other related costs		—			—					—			1,172
Amortization of debt discount and issuance costs for the convertible senior notes		7,973			7,451					31,097			29,059
Non-GAAP income before provision for income taxes	$	43,431		$	13,288				$	107,559		$	15,828
Provision for income taxes:
GAAP provision for income taxes	$	1,724		$	1,417				$	5,414		$	3,847
Add back:
Income tax expense effects related to the above adjustments		9,152			6,953					34,750			21,987
Non-GAAP provision for income taxes	$	10,876		$	8,370				$	40,164		$	25,834
Net income (loss):
GAAP net loss	$	(37,378	)	$	(44,663	)			$	(198,426	)	$	(179,387	)
Add back:
Stock-based compensation		68,182			45,996					257,713			154,319
Amortization of intangibles (2)		2,930			3,087					11,761			6,818
Business combination and other related costs		—			—					—			1,172
Amortization of debt discount and issuance costs for the convertible senior notes		7,973			7,451					31,097			29,059
Income tax expense effects related to the above adjustments		(9,152	)		(6,953	)				(34,750	)		(21,987	)
Non-GAAP net income (loss)	$	32,555		$	4,918				$	67,395		$	(10,006	)
Net income (loss) per share - basic and diluted:
GAAP net loss per share - basic and diluted	$	(0.23	)	$	(0.30	)			$	(1.27	)	$	(1.23	)
Non-GAAP net income (loss) per share - basic	$	0.20		$	0.03				$	0.43		$	(0.07	)
Non-GAAP net income (loss) per share - diluted	$	0.19		$	0.03				$	0.40		$	(0.07	)
Weighted-average shares used to compute net income (loss) per share - basic		159,718,874			148,666,257					155,706,643			145,355,543
GAAP weighted-average shares used to compute net loss per share - diluted		159,718,874			148,666,257					155,706,643			145,355,543
Effect of dilutive securities (stock options, restricted stock units and common stock subject to repurchase)		11,047,627			15,260,331					13,056,123			—
Non-GAAP weighted-average shares used to compute net income per share - diluted		170,766,501			163,926,588					168,762,766			145,355,543
(1) Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period.
(2) The Non-GAAP amounts presented for the three and twelve months ended December 31, 2014 have been revised to exclude the amortization of other intangibles.

ServiceNow, Inc.
Reconciliation of Non-GAAP Financial Guidance
The financial guidance provided below is an estimate based on information available as of December 31, 2015. The company’s future performance and financial results are subject to risks and uncertainties, and actual results could differ materially from the guidance set forth below. Some of the factors that could affect the company’s financial results are stated above in this press release. More information on potential factors that could affect the company’s financial results is included from time to time in the company’s public reports filed with the SEC, including the company's Annual Report on Form 10-K filed on February 27, 2015, the company's Form 10-Q for the quarter ended September 30, 2015 filed on November 4, 2015 and the company's Form 10-K for the year ended December 31, 2015 to be filed with the SEC. The company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
	Three Months Ended	Three Months Ended		Constant currency
	March 31, 2016	March 31, 2015	Growth rates	growth rates (1)
Non-GAAP billings	$360 - $365 million	$268 million	34% - 36%	36% - 38%
Change in deferred revenue from Consolidated Statements of Cash Flows	62 million	56 million
GAAP revenue	$298 - $303 million	$212 million	41% - 43%	42% - 44%
Non-GAAP subscription gross margin	83%
Stock-based compensation expense	(3%)
Amortization of intangible assets	(1%)
GAAP subscription gross margin	79%
Non-GAAP professional services and other gross margin	9%
Stock-based compensation expense	(18%)
GAAP professional services and other gross margin	(9%)
Non-GAAP total gross margin	73%
Stock-based compensation expense	(5%)
Amortization of intangible assets	(1%)
GAAP total gross margin	67%
Non-GAAP operating margin	5%
Stock-based compensation expense	(27%)
Amortization of intangible assets	(1%)
GAAP operating margin	(23%)
Non-GAAP free cash flow margin	21%
Purchases of property and equipment as % of revenue	9%
GAAP net cash provided by operating activities as % of revenue	30%
Non-GAAP weighted-average shares used to compute net income per share - diluted	173 million
Effect of dilutive securities (stock options, restricted stock units)	(10 million)
GAAP weighted-average shares used to compute net loss per share - diluted	163 million
	Twelve Months Ended	Twelve Months Ended		Constant currency
	December 31, 2016	December 31, 2015	Growth rates	growth rates (1)
Non-GAAP billings	~$1,600 million	$1,201 million	33%	34%
Change in deferred revenue from cash flow	230 million - 260 million	196 million
GAAP revenue	$1,340 million - $1,370 million	$1,005 million	33% - 36%	34% - 37%
Non-GAAP operating margin	12%
Stock-based compensation expense	(25%)
Amortization of intangible assets	(1%)
GAAP operating margin	(14%)
Non-GAAP free cash flow margin	24%
Purchases of property and equipment as % of revenue	8%
GAAP net cash provided by operating activities as % of revenue	32%
Non-GAAP weighted-average shares used to compute net income per share - diluted	177 million
Effect of dilutive securities (stock options, restricted stock units)	(10 million)
GAAP weighted-average shares used to compute net loss per share - diluted	167 million
(1) Constant currency growth rates presented are derived from converting the current period estimates for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the current period estimated exchange rates.

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