Skip to content

Instantly share code, notes, and snippets.

@sergeliatko
Last active September 3, 2024 13:36
Show Gist options
  • Save sergeliatko/2990f8ab28f22602b94b7c1c6a3fa2a4 to your computer and use it in GitHub Desktop.
Save sergeliatko/2990f8ab28f22602b94b7c1c6a3fa2a4 to your computer and use it in GitHub Desktop.
10K sample outline
FORM 10-K
FORM 10-K
Filing Information under the Securities Exchange Act of 1934
Annual and Transition Report Filing Information under the Securities Exchange Act of 1934.
DOCUMENTS INCORPORATED BY REFERENCE
Incorporation by Reference of Definitive Proxy Statement for 2020 Annual Meeting of Stockholders.
Exclusion of Proxy Statement from Form 10-K Filing.
TABLE OF CONTENTS
PART I Item 1 Business 1 Item 1A Risk Factors 10 Item 1B Unresolved Staff Comments 28 Item 2 Properties 28 Item 3 Legal Proceedings 28 Item 4 Mine Safety Disclosures 28
PART II Item 5 Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29 Item 6 Selected Consolidated Financial Data 31 Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations 32 Item 7A Quantitative and Qualitative Disclosures About Market Risk 50 Item 8 Consolidated Financial Statements and Supplementary Data 52 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 89 Item 9A Controls and Procedures 89 Item 9B Other Information 90
PART III Item 10 Directors, Executive Officers and Corporate Governance 90 Item 11 Executive Compensation 90 Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 91 Item 13 Certain Relationships and Related Party Transactions and Director Independence 91 Item 14 Principal Accounting Fees and Services 91
PART IV Item 15 Exhibits and Financial Statement Schedules 91 Item 16 Form 10-K Summary 95 Signatures 95 Index to Exhibits 92
PART I
FORWARD-LOOKING STATEMENTS
Forward-Looking Statements Disclaimer in Annual Report.
Identification of Forward-Looking Statements Through Key Phrases.
Disclaimer Regarding Forward-Looking Statements and Potential Discrepancies in Actual Results.
References to Risk Factors and SEC Filings Affecting Forward-Looking Statements.
Disclaimer on Reliance on Forward-Looking Statements.
Disclaimer of Obligation to Update Forward-Looking Statements.
ITEM 1. BUSINESS
ServiceNow's Mission and Application Development for Workflow Automation.
Integration of Workflows Across Departments for Enhanced Efficiency and Experience.
Digital Workflows on the Now Platform®.
Product Portfolio Focused on IT, Employee, and Customer Workflow Solutions.
Customer Use of Now Platform App Engine for Custom Workflow Applications.
Definition and Challenges of Enterprise Workflows.
Example of New Hire Process and Departmental Coordination for Employee Onboarding.
Digital Workflow Platform for Streamlined Employee Onboarding Tasks.
Manager Approval and Subsequent Notifications for New Hire Onboarding Process.
Now Platform Usage Requirement for Workflow Participants.
Explanation of Digital Workflow Management Capabilities and Benefits.
Enterprise-Wide Application of Digital Workflow Management Tools in Complex Workflows.
The Now Platform as the Foundation for IT, Employee, and Customer Workflow Offerings.
Applicability of Enterprise Workflows to Now Platform-Based Applications.
Role of Native Mobile Applications in Automated Workflow Deployment.
Third-party Application Development and Distribution on Now Platform.
Software Delivery via Internet as a Service with User-Friendly Interface for Rapid Deployment and Custom Application Development.
Self-Hosted or Third-Party Hosted Software Option for Customers.
1 Table of Contents
Description of Product and Service Offerings and Sales Channels.
Corporate Formation and Name Change History (2004-2006).
Reincorporation in Delaware as ServiceNow, Inc. in May 2012.
Our Products
Description of the Now Platform and Pre-Packaged Workflow Automation Applications.
Description of the Now Platform's Capabilities in Custom Workflow Creation and Application Development.
Role of Products and Services in Digital Transformation and Workflow Integration.
The Now Platform and Now Platform App Engine
Capabilities of the Now Platform for Workflow Management and Enterprise Service Delivery.
Supported Services on the Now Platform.
Product Integration on the Now Platform for Unified Workflow Management.
Native Mobile Experiences Powered by the Now Platform.
Objective to Simplify and Enhance Customer Work Lives with Mobile-Friendly Solutions.
Description of the Now Platform App Engine Capabilities.
Examples of Customer-Developed Applications Using Now Platform App Engine.
Applications Developed and Deployed Using Now Platform App Engine Available on ServiceNow Store.
Description of the ServiceNow Store and Its Benefits.
IT Workflows
Origin and Purpose of Company's IT Workflow Systems.
Advanced Capabilities of IT Products in Supporting IT Departments.
Bridging Traditional IT Practices with Modern Business Needs through IT Workflows.
Overview of IT Workflow Products and Their Applications in Employee and Customer Workflows.
Now IT Service Management
Overview of IT Service Management (ITSM) Capabilities and Functions.
ITSM Product Suite Capabilities: Incident Recording, Problem Remediation, and Routine Task Automation.
Enhancement of IT Service Experience through ITSM.
Customer Service Portals for IT Service Requests, Software/Hardware Orders, and Incident Submissions.
Now IT Business Management
Overview of IT Business Management (ITBM) Product Suite Capabilities.
Customer Benefits of IT Business Management (ITBM) Product Suite.
Now DevOps
Overview of Enterprise DevOps Product Features and Integration Capabilities.
Benefits of DevOps for Streamlining Software Development and Deployment.
Now IT Operations Management
Description and Benefits of IT Operations Management (ITOM) Product Suite.
Now IT Asset Management
Automation of IT Asset Lifecycles with Detailed Tracking Workflows.
Customer Benefits: Visibility into IT Asset Lifecycle for Cost Optimization and Workflow Automation.
Now Security Operations
Functionality of Security Operations Product in Integrating and Responding to Security Alerts.
Components of Security Operations Product.
Simplification of Incident Response Through Automated Security Orchestration and Prioritization.
Now Integrated Risk Management
Integrated Risk Management Product: Policy Creation, Regulatory Compliance, and Real-Time Risk Monitoring.
Customer Risk Assessment and Strategic Decision-Making with Continuous Monitoring and Prioritization.
Employee Workflows
Overview of Employee Workflow Products and Their Benefits.
Employee Workflows Enabled by Now HR Service Delivery, Finance Operations Management, and ITSM.
Now HR Service Delivery
Overview of HR Service Delivery Product Functions.
HR Service Delivery Capabilities Including Case Management and Lifecycle Event Management.
Automation and Orchestration of Cross-Departmental HR Tasks.
Advantages of HR Service Delivery for Resource Efficiency and Employee Lifecycle Management.
Now Finance Operations Management
Finance Close Automation (FCA) Overview and Integration with ERP Systems.
Centralized Workspace for Enhanced Financial Systems Management with FCA.
Customer Workflows
Purpose and Benefits of Customer Workflow Products.
Enhancing Customer Loyalty and Proactively Resolving Issues Through Customer Workflows.
Customer Workflow Enablement via Now Customer Service Management, Now Field Service Management, and ITOM.
Now Customer Service Management
Functionality and Automation Capabilities of Customer Service Management Product.
Customer Service Management Benefits: Enhanced Efficiency and Service Quality.
Now Field Service Management
Field Service Agent Assignment and Management on Customer Service Platform.
Field Service Management for Efficient Task Scheduling and Dispatch.
Professional Services
Overview of Professional Services and Customer Success Programs.
Definition of Expert Services Including Process Design, Implementation, Configuration, Architecture, and Optimization.
Support for Enterprise Digital Transformations in Service Management Strategy and Roadmap.
Details of Customer Success Programs Including Training, Certification, and Support Resources.
Customer Support
/7 Global Customer Support Availability.
Self-Service Technical Support via Online Support Portal.
Our Technology and Operations
Description of Multi-Instance Architecture and Development Environment.
Composition of Cloud Infrastructure and Database Systems.
Hosting of Software-as-a-Service on Private and Public Clouds for Regulated Customers.
Data Center Locations and High-Availability Configuration.
Option for Customers to Deploy Services on Dedicated Hardware in Data Centers.
Title: Internal or Third-Party Deployment Options for Regulatory and Security Compliance.
Customer Support Equivalence for Self-Hosted and Managed Data Center Deployments.
Sales and Marketing
Primary Sales Channels and Distribution Partnerships.
Marketing and Lead Generation Activities Overview.
Annual Knowledge User Conference and Other Educational User Forums.
Expansion of Sales Capabilities in New Geographies Through Diverse Investments.
Planned Investment Increase in Existing Locations for Sales and Marketing Scale Efficiencies.
Customers
Primary Market and Deployment Services for Large Enterprise Customers.
Customer Base as of December 31, 2019.
Industry Diversity of Customer Base.
Revenue Diversification Among Customers.
Remaining Performance Obligations
Remaining Performance Obligations (RPO) as of December 31, 2019 and 2018.
RPO as Indicator of Firm Customer Backlog Orders Aligned with Revenue Recognition Standard.
Reference to Note 9 for Additional Information on Remaining Performance Obligations.
Research and Development
Research and Development Responsibilities and Focus Areas.
Utilization of Emerging Technologies to Anticipate Customer Demands and Expedite Market Introduction of New Services.
Commitment to Ongoing Research and Development Investments.
Acquisitions and Investments
Strategic Acquisitions and Investments to Complement Technology and Expand Product Reach.
Strategic Platform and Product Development through Acquisitions and Investments to Meet Customer Needs.
Competition
Competitive Market Dynamics and Anticipated Intensification.
List of Current Competitors in the Market :
Customer Reluctance to Migrate Due to Prior Investments in Enterprise Software.
Anticipated Increase in Competition from Platform and Application Development Vendors.
Key Factors Influencing Purchase Decisions and Competitive Positioning.
Competitors' Superior Resources and Agility in Market Response.
Risk of Competitors Introducing or Utilizing Technology to Reduce Demand for Our Services.
Impact of Industry Consolidation on Competitive Position.
Pricing Pressures Due to Competitors' Lower Prices and Bundling Flexibility.
Expectation of Ongoing or Increasing Pricing Competition Due to Market Intensification.
Intellectual Property
Intellectual Property Protection Measures and Legal Frameworks.
Confidentiality and Proprietary Rights Agreements with Stakeholders and Access Control to IP.
Technology Acquisition and Licensing for Product Integration.
Intellectual Property Rights in Partnership-Developed Technology on the Now Platform.
Expansion of Global Patent Portfolio and IP Rights.
Dependence on Protecting Core Technology and Intellectual Property for Success.
Patent Portfolio and Pending Applications Overview.
Assertion of Independence from Individual Patents or IP Rights.
Uncertainty in Patent Application Outcomes and Value.
Potential Challenges and Limitations of Patent Protection Enforcement.
Unauthorized Use and Policing Challenges of Proprietary Technology.
Limited International Legal Protection for Proprietary Technology.
Potential Competitor Developments and Limitations of IP Rights.
Risks of Reverse Engineering, Unauthorized Copying, and Misappropriation of Proprietary Technology.
Frequent Claims and Litigation in the Industry Regarding Patent and IP Rights.
Third-Party IP Claims Against Company and Affiliates.
Increased Risk of IP Infringement Claims Due to Public Company Status and Market Exposure.
Example of Patent Litigation Settlements and Related Financial Impact in 2016.
Employees
Employee Statistics and Labor Union Representation as of December 31, 2019.
Available Information
Availability of SEC Filings and Reports on Company Website.
Reference to SEC Internet Site for Electronic Filings and Reports.
Incorporation Disclaimer for Website Contents and URL References.
ITEM 1A. RISK FACTORS
Risk Disclosure and Considerations for Investors.
Identification of Material Risks and Potential Adverse Effects on Business Operations.
Potential Decline in Stock Price and Investment Loss Due to Identified Risks.
Risks Related to Our Ability to Grow Our Business
Competitive Market Participation and Impact on Business Performance.
Competitive Landscape and Market Entry Barriers for Enterprise Cloud Solutions.
Expected Intensification of Competition in the Maturing Digital Workflow Products Market.
List of Current Competitors in the Digital Workflow Market :
Customer Reluctance Due to Existing Enterprise Software Investments.
Competitive Disadvantage Due to Competitors' Larger Size, Name Recognition, and Resources.
Competitive Threats and Market Responses by Established Competitors.
Expanding Competition from Adjacent Markets and New Service Offerings.
Impact of Smaller Competitors and New Entrants on Pricing Pressure in ITSM Market.
Potential Competitive Disadvantages and Business Impact Risks.
Impact of Privacy Laws, Cloud Computing Regulations, and Data Transfer Restrictions on Business.
Government Regulations Impacting Data Privacy, Internet Usage, AI, and Data Sovereignty for Cloud Services.
Utilization of Product Usage Data for Continuous Improvement.
Impact of Evolving Data Privacy Laws on Service Development and Deployment.
Examples of Recent Regulatory Changes Affecting Data Handling :
- Introduction of GDPR and Interpretation Variability.
EU Proposed e-Privacy Regulation and Right to be Forgotten Requirements.
- Impact of Brexit on Compliance with EU and UK Privacy Regulations and Customer Uncertainty.
- European Court of Justice Ruling on Privacy Shield and Standard Contractual Clauses Impact on Data Transfer.
- Implementation and Impact of the California Consumer Privacy Act (CCPA) in January 2020.
Potential Future Legislation on Data Privacy and Localization by Various Jurisdictions.
- Consideration of AI and Machine Learning Regulation by US and Non-US Governments.
Compliance Costs and Obligations Under Data Privacy and Transfer Regulations.
Potential Consequences of Non-Compliance with Data Privacy Regulations.
Potential Fines for GDPR Non-Compliance and Regulatory Interpretations.
Impact of Product Changes on Compliance Requirements.
Impact of Increased Privacy Regulation Compliance Costs on Innovation and Product Demand.
Additional Obligations from Self-Regulatory Standards by Privacy and Industry Groups.
Customer Expectations for Voluntary Certifications and Third-Party Standards Compliance.
Risk of Competitive Disadvantage Due to Rapid Technological and Market Changes.
Acceleration of Innovation Driven by Digital Technology Adoption.
Customer Decision-Making on Digital Technology Adoption.
Requirements for Competitive Effectiveness in Technology Market :
Potential Risks of Failing to Meet Key Business Requirements.
Impact of Product Release Delays and Defects on Technology Adoption and Customer Satisfaction.
Necessity for Successful Release of New Products and Updates and Associated Risk Management.
Impact of Delayed or Defective Product Releases on Customer Adoption and Business Growth.
Risks Associated with Government and Heavily-Regulated Organizational Contracts.
Provision of Products and Services to Government and Regulated Entities Directly and Through Partners.
Investments in Government Sector Sales and Cloud Security Certifications.
Potential Changes and Challenges in Maintaining Government Certifications.
Impact of Certification Requirements on Government Sector Sales.
Sales to Government Entities Primarily Through Distributors and Resellers.
Risks and Challenges in Government Procurement Process.
Significant Up-Front Costs and Compliance Risks in Government Contract Bidding.
Impact of Public Sector Budgetary Cycles and Federal Government Shutdown on Product and Service Demand.
Potential Challenges to Bid Awards by Competitive Bidders.
Impact of Bid Protests on Contract Award Expenses and Outcomes.
Impact of Unsuccessful Bid Protests on Project Initiation and Financial Results
Termination Rights of Public Sector Customers for Convenience or Default.
Termination for Convenience – Fee Collection Limitations.
Liability for Excess Costs and Business Restrictions Upon Contract Termination Due to Default.
Compliance Requirements and Legal Obligations for Government Contracting Entities.
Government Audits and Potential Penalties for Non-Compliance with Contractual Requirements.
Expansion into Heavily Regulated Industries.
Regulatory Compliance Requirements for Customers in Heavily Regulated Industries.
Regulatory Compliance Challenges for Third-Party Vendors and Our Company.
Customer Audit Rights in Heavily-Regulated Areas.
Regulatory Compliance Determination and Business Continuity Constraints.
Risks Associated with Non-U.S. Government Customers in Emerging Markets.
Compliance Costs and Management Resource Consumption Due to Complex Regulations in Various Jurisdictions.
Impact of Political and Non-Competitive Factors on Business Opportunities in Certain Jurisdictions.
Potential Adverse Impact on Business and Operational Results.
Reliance on Partner Network and Potential Impact on Revenue and Growth.
Revenue Generation through Partner Network, Including Managed Service Providers and Resellers.
Increasing Reliance on Partners for Professional Services and Customer Implementations.
Effectiveness and Consistency of Partner Training Programs.
Extensive Training and Resource Requirements for New Partners.
Partner-Related Legal Risks and Reputational Harm Due to Misrepresentation, Service Failures, or Policy Violations.
Potential Competitive Threats and Intellectual Property Concerns from Partners.
Impact of Partner Network Management and Service Quality on Business Performance.
Impact of Unsuccessful International Market Penetration and Risk Management on Business and Operating Results.
Dependence on Increasing International Sales and Risks of Failing to Grow Internationally.
Risks and Investments Associated with Operating in International Markets.
Investment Uncertainty in New Geographic Markets.
Lower Rate of Acquisition of Large Enterprise Customers in Less Established Markets Due to Regulatory and Operational Risks.
Emerging Markets Presence Among Prospective Large Enterprise Customers.
Challenges in Geographic Expansion and Foreign Operations Management.
Risks Associated with International Market Expansion :
Adverse Effects of Unmanaged International Market Risks on Business and Revenue Growth.
Potential Risks and Downsides of Acquisitions and Investments.
Past and Future Strategic Transactions: Acquisitions and Investments in Businesses, Technologies, Services, Products, and Assets.
Potential Strategic Business Relationships for Expanding Services and International Capabilities.
Limitations of Due Diligence in Strategic Transactions.
Risks Associated with Strategic Transactions :
Potential Financial Impact of Future Acquisition Financing Methods.
Potential Dilution and Financial Constraints from Equity or Debt Financing of Acquisitions.
Potential Negative Impact on Business, Operating Results, and Financial Condition.
Risks Related to the Operation of Our Business
Potential Liabilities and Business Impact of Cyber-Security Events.
Handling and Protection of Confidential and Sensitive Customer Data.
Potential Breach of Security Measures and Unauthorized Data Access.
Fraudulent Inducement and Phishing Risks by Third Parties.
Lack of Control Over Third-Party Data Processing and Security Measures.
Prevalence and Recurrence of Cybersecurity Threats in Industry.
Inability to Anticipate and Prevent Evolving Cybersecurity Threats.
Ongoing Investment in Cyber-Security Measures and Potential Future Expenditures.
Potential Consequences of Security Breaches and Cyber Attacks.
Potential Costs and Operational Consequences of Security Incident Mitigation and Prevention.
Uncertainty of Insurance Coverage for Security Incidents and Breaches.
Customer Responsibility for Data Access and Optional Use of Provided Security Tools and Practices.
Potential Economic, Operational, and Reputational Impact of Customer-Caused Cyber-Security Events.
Dependence on Key Employees and Impact on Business Operations.
Management Team Changes and Potential Impact on Business Operations.
Challenges in Attracting and Retaining Qualified Technology Industry Personnel.
Challenges in Hiring and Retaining Highly-Skilled Employees in Key Geographic Locations.
At-Will Employment and Its Impact on Recruitment and Retention.
Importance of Corporate Culture in Retaining and Recruiting Personnel During Global Expansion.
Impact of Natural Disasters and Catastrophic Events on Business Operations.
Risk of Business Interruption Due to Natural Disasters and Uncontrollable Events.
Insurance Coverage Insufficiency for Potential Losses and Expenses.
Risk of Operational Disruption Due to Proximity to Seismic Faults in California and Washington.
Factors Impacting Product Implementation Success and Business Dependence on Effective Customer Implementation.
Dependence on Partner Network for Implementation Services and Potential Shortage of Qualified Partners.
Potential Causes of Implementation Delays and Inefficiencies.
Potential for Significant Implementation Costs Due to Various Risks.
Customer Implementation Delays and Impact on Sales and Subscription Renewals.
Customer Capacity and Talent Limitations Impacting Digital Transformation Benefits.
Risks of Unsuccessful, Lengthy, or Costly Customer Implementation and Integration Projects.
Potential Liability and Reputational Damage from Service Disruptions or Defects.
Potential for Defects in Services and Impact of Third-Party Software.
Potential Sources of Service Disruptions: Internal Errors and External Incidents.
Current and Future Data Center Management and Service Provision Strategy.
Vulnerability of Data Centers to Natural Disasters, Misconduct, and Operational Failures.
Potential Service Interruptions and Customer Data Loss Due to Data Center Issues.
Customer-Induced Service Disruption Risks.
Impact of Service Reliability on Customer Trust and Business Reputation.
Impact of Service Disruptions or Defects on Revenue, Penalties, Litigation, Customer Retention, and New Customer Acquisition.
Customer-Specific System Resiliency Requirements and Potential Non-Compliance.
Impacts of Claims and Breaches on Financial Liabilities and Litigation Risks.
Insufficient Insurance Coverage for Service Disruption Claims.
Risks Related to the Financial Performance or Financial Position of Our Business
Potential Impact of Financial Performance on Common Stock Price.
Variability of Operating Results Due to Uncontrollable Factors.
Risk of Financial Performance Not Meeting Guidance or Expectations of Analysts and Investors.
Potential Impact on Common Stock Price and Investor Losses Due to Unmet Financial Expectations.
Factors Influencing Financial Performance and Forward-Looking Guidance :
- Ability to Attract, Retain, and Satisfy Customers ;
- Changes in Product and Service Mix, Cloud vs. Self-Hosted Offerings, Market Penetration, and Customer Usage ;
- Ability to Increase Sales of Emerging Products ;
- Volatility in Foreign Currency Exchange Rates and Hedging Ability ;
- Sales Force Expansion, Retention, and Productivity Rate ;
- Number of New Employees Added ;
- Cost, Timing, and Management Effort for Development of New Products and Services ;
- General Economic Conditions Impacting Customer Purchasing Decisions ;
- Operating Costs and Capital Expenditures: Amount and Timing Related to Business Operation and Expansion ;
- Seasonality of Customer Agreement Timings ;
- Length and Complexity of Sales Cycle and Certification Process for Services ;
- Changes in Customer Relationship Size and Complexity ;
- Changes to Management, Sales, and Account Management Teams Due to Scaling and Evolving Business Priorities ;
- Changes in Pricing Policies of Company or Competitors ;
- Significant Security Breaches, Technical Difficulties, or Service Interruptions ;
- Competitor Introductions of New Solutions or Products ;
- Changes in Effective Tax Rates ;
- Changes in Customer Agreement Terms and Billing Durations ;
- Timing of Customer Payments and Payment Defaults ;
- Extraordinary Expenses Including Litigation Costs and Settlement Payments ;
- Costs of Acquiring New Businesses and Technologies, Integration, and Tax Effects of Acquisitions ;
- Changes in Laws or Regulations Impacting Service Delivery ;
- Compliance with Privacy Laws and Regulations, Including GDPR and CCPA ;
- Significant Litigation or Regulatory Actions Regarding Intellectual Property, Privacy Laws, Employment, or Other Significant Matters ;
- Equity Awards and Related Financial Statement Expenses ;
- Impact of New Accounting Pronouncements
- Estimation précise du marché total adressable pour nos produits et services.
Risk of Intellectual Property Infringement Claims by Third Parties.
Disparity in Patent Portfolios and Increased Risk of Infringement Litigation.
Potential Claims of Intellectual Property Infringement by Competitors and Third Parties.
Example of Legal Settlement Charges and Fulfillment of Obligations with BMC and HPE.
Potential Consequences and Costs of Intellectual Property Litigation :
Potential Intellectual Property Litigation Due to Expiration of Third-Party Agreements.
Impact of Litigation and Public Statements on Customer Satisfaction, Sales, and Stock Price.
Impact of Claims or Litigation on Management Focus and Financial Health.
Consequences of Non-Compliance with Anti-Corruption Laws and Trade Regulations.
Compliance with FCPA, 18 U.S.C. §201, UK Bribery Act, and Other International Anti-Bribery Laws.
Risks of Non-Compliance with FCPA and Anti-Corruption Laws.
Liability for Third-Party Intermediaries' Corrupt Activities.
Anti-Corruption Compliance Program and Associated Risks of Employee and Agent Violations.
Increased Scrutiny and Liability Due to Business Expansion in Countries with High Corruption Levels.
Compliance with International Trade Regulations and Restrictions.
Consequences of Violating FCPA, Anti-Corruption Laws, or Trade Regulations.
Impact of Enforcement Action Response on Management Focus and Defense Costs.
Potential Lack of Competitive Advantage and Significant Costs in Defending Intellectual Property.
Dependence on Intellectual Property Protections for Success.
Potential Limitations and Risks of Patent Protection.
Uncertainty of Legal Standards for Intellectual Property Rights Validity and Enforceability.
Challenges and Invalidations of Intellectual Property Rights Through Administrative Processes or Litigation.
Availability of Intellectual Property Protection Across Different Countries.
Differences in Intellectual Property Protection and Enforcement in Foreign Countries.
Monitoring and Protection of Intellectual Property Rights Expenditure.
Potential Claims or Litigation for Infringement and Validation of Proprietary Rights.
Potential Impact of Litigation on Company Resources and Risk of Counter-Claims.
Risk of Adverse Effects on Business Due to Intellectual Property Infringement and Defense Costs.
Risks Associated with Open Source Software Use.
Incorporation of Third-Party Open Source Software in Products and Services.
Efforts to Monitor Open Source Software Usage and Mitigate Adverse Licensing Conditions.
Uncertainty and Lack of Legal Precedent in Open Source License Interpretation.
Potential Obligations Under Various Open Source Licenses.
Potential Legal Risks of Non-Compliance with Open Source Software Licenses.
Revenue Recognition and Impact of Subscription Fluctuations on Operating Results.
Impact of Decline in Subscriptions and Renewals on Future Revenues.
Impact of Subscription Model on Revenue Recognition and Growth.
Revenue Recognition Variability Due to Contract Complexity Under ASC 606.
Impact of Subscription and Contract Variability on Period Billings.
Expected Decline in Revenue Growth Rate and Potential Impact on Stock Price.
Impact of Changes in Effective Tax Rate and Tax Position Rejection on Financial Results.
Impact of Changes in Accounting Principles and Tax Laws on Future Effective Tax Rate.
Authority of the U.S. Department of Treasury to Issue Regulations and Interpretative Guidance Affecting Operational Results.
Consideration and Enactment of New Tax Laws by Various Countries and International Organizations.
Impact of Recent Global Tax Developments and Increased Scrutiny on Multinational Businesses.
Impact of Changes in Tax Laws or Rulings on Effective Tax Rate and Financial Results.
Potential for Global Income Tax Audits and Ambiguities in Cloud Computing Tax Treatment.
Potential Impact of Adverse Resolution of Uncertain Tax Positions on Operational Results.
Potential Tax Liabilities from International Intangible Assets and Inter-Company Agreements.
Potential GAAP Losses Despite Historical Profitability.
Potential Future GAAP Losses Due to Increased Costs and Unforeseen Expenses.
Market Uncertainty and Competitive Dynamics Impacting Business Performance Predictability.
Potential Negative Impact on Future Profitability and Cash Flow.
Impact of Insufficient Revenue Growth on Business and Financial Performance.
Impact of Ineffective Internal Control on Financial Reporting Accuracy and Timeliness.
Sarbanes-Oxley Act Annual and Quarterly Reporting Requirements for Internal Control and Disclosure Controls.
Annual Audit Requirement of Internal Control Effectiveness by Independent Accounting Firm under Section 404(b) of Sarbanes-Oxley Act.
Adverse Report Issuance by Independent Registered Public Accounting Firm Due to Unsatisfactory Control Levels.
Potential Discovery of Material Weaknesses or Significant Deficiencies Through Testing.
Potential Consequences of Identifying Material Weaknesses or Non-Compliance with Section 404.
Potential Delays in Implementing System and Process Changes for New Standards.
Risks Related to General Economic Conditions
Impact of Global Economic Conditions on Business and Operations.
Impact of Global Macroeconomic Conditions on Business and Revenues.
Impact of 2020 Geopolitical and Economic Events on Business Operations.
Potential Impact of Brexit on UK and EU Economies and Businesses
Impact of Global Financial Conditions on Business and Operational Judgments.
Impact of Foreign Currency Exchange Rate Fluctuations on Financial Results.
Risk of Unpredictable Currency Fluctuations on Financial Results.
Impact of Brexit Announcement and Uncertainty on Global Markets and Currency Volatility.
Expected Continued Volatility in Exchange Rates and Global Financial Markets Due to Brexit and Global Uncertainty.
Initiation of Derivative Instruments for Currency Exchange Rate Hedging in 2018.
Risk of Unanticipated Currency Exchange Rate Changes on Financial Performance.
Risk of Imperfect Correlation in Hedging Due to Limited Experience.
Risk of Loss Due to Imperfect Correlation in Hedging.
Risks Related to Our Convertible Senior Notes
Potential Inability to Fund Cash Settlements or Repurchases of 2022 Convertible Senior Notes.
Repurchase Rights of Holders Upon Fundamental Change.
Adjustment to Conversion Rate upon Make-Whole Fundamental Change.
Cash Settlement Requirement and Potential Liquidity Constraints upon Conversion of 2022 Notes.
Future Incurrence of Additional Debt by Company and Subsidiaries Subject to Future Debt Instrument Restrictions.
No Restrictions on Incurring Additional Debt or Recapitalizing Existing Debt Under the Indenture.
Acquisition Prohibition and Obligations Assumption Clause.
Limitations on Repurchase or Cash Payment upon Conversion of 2022 Notes Due to Legal and Regulatory Constraints.
Failure to Repurchase or Pay Cash Upon Conversion of 2022 Notes Constitutes Default.
Consequential Default Under Future Indebtedness Agreements.
Impact of Fundamental Change on Default and Indebtedness Repayment Obligations.
Potential Adverse Impact of Conditional Conversion Feature on Financial Condition and Operating Results.
Conditions for Conversion of 2022 Notes Prior to February 1, 2022.
Conversion Eligibility of 2022 Notes Based on Conversion Condition Compliance.
Cash Settlement of Immaterial Principal Amount of 2022 Notes for Year Ended December 31, 2019.
Expected Cash Settlement of 2022 Notes Conversion Requests for Q1 and Q2 2020.
Potential Liquidity Impact of Future 2022 Notes Conversions.
Recording a Loss on Early Conversions of 2022 Notes.
Impact of Convertible Note Hedge and Warrant Transactions on 2022 Notes and Common Stock Value.
Convertible Note Hedge and Warrant Transactions with Option Counterparties.
Purpose and Effect of the 2022 Note Hedge Transactions.
Potential Dilutive Effect and Share Issuance Mechanics of the 2022 Warrants.
Expected Issuance of Additional Shares Upon Automatic Exercise of 2022 Warrants.
Potential Impact of Hedge Position Adjustments by Option Counterparties on Stock and 2022 Notes Prices.
Market Condition Dependency on Stock and Note Price Effects.
Potential Adverse Effects on Common Stock and 2022 Notes Value and Conversion Ability.
Disclaimer on Potential Effects of Transactions on 2022 Notes and Common Stock Prices.
Non-Representation of Option Counterparties' Engagement and Continuity of Transactions.
Counterparty Risk and Credit Exposure in the 2022 Note Hedge.
Impact of Recent Global Economic Conditions on Financial Institutions' Stability.
Unsecured Creditor Status in Option Counterparty Insolvency Proceedings.
Correlation Between Exposure and Stock Price/Volatility.
Potential Adverse Tax Consequences and Increased Dilution Due to Option Counterparty Default.
No Assurance on Financial Stability or Viability of Option Counterparties.
Risks Related to Ownership of Our Common Stock
Potential Litigation Due to Stock Price Volatility.
Stock Price Volatility Due to Uncontrollable Factors.
Technology Sector Stock Price and Trading Volume Volatility Disproportionate to Financial Performance.
Factors Influencing Stock Price Volatility Beyond Company Control :
Potential Impact of Securities Class Action Litigation Due to Market Price Volatility.
Dividend Policy and Return on Stock Price.
Anti-Takeover Provisions and Their Impact on Stock Price.
Provisions in Restated Certificate of Incorporation and Bylaws Potentially Affecting Stock Price by Discouraging Changes in Control or Management.
{
"index": 0,
"title": "FORM 10-K",
"name": "",
"content": "",
"type": "container",
"path": "000",
"children": [
{
"index": 0,
"title": "FORM 10-K",
"name": "",
"content": "",
"type": "container",
"path": "000:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Filing Information under the Securities Exchange Act of 1934",
"content": "",
"type": "container",
"path": "000:001",
"children": [
{
"index": 0,
"title": "",
"name": "Annual and Transition Report Filing Information under the Securities Exchange Act of 1934",
"content": "\u2612Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934\nFor the fiscal year ended December 31, 2019\nOR\n\u2610Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934\nCommission File Number: 001-35580\nSERVICENOW, INC. (Exact name of registrant as specified in its charter)\nDelaware 20-2056195\n(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)\nServiceNow, Inc.\n2225 Lawson Lane\nSanta Clara, California 95054\n(408) 501-8550\n(Address, including zip code, and telephone number, including area code, of registrant\u2019s principal executive offices)\nSecurities registered pursuant to Section 12(b) of the Act:\nTitle of each class Trading Symbol Name of each exchange on which registered\nCommon stock, par value $0.001 per share NOW The New York Stock Exchange\nSecurities registered pursuant to Section 12(g) of the Act:\nNot applicable\nIndicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.\nYes \u2612 No \u2610\nIndicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of Act.\nYes \u2610 No \u2612\nIndicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:\nYes \u2612 No \u2610\nIndicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (\u00a7232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).\nYes \u2612 No \u2610\nIndicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of \u201clarge accelerated filer,\u201d \u201caccelerated filer,\u201d \u201csmaller reporting company\u201d and \u201cemerging growth company\u201d in Rule 12b-2 of the Exchange Act.\nLarge Accelerated Filer \u2612\nAccelerated Filer \u2610\nNon-Accelerated Filer \u2610\nSmaller Reporting Company \u2610\nEmerging Growth Company \u2610\nIf an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.\n\u2610\nIndicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).\nYes \u2610 No \u2612\nBased on the closing price of the Registrant\u2019s Common Stock on the last business day of the Registrant\u2019s most recently completed second fiscal quarter, which was June 28, 2019, the aggregate market value of its shares (based on a closing price of $274.57 per share on June 28, 2019 as reported on the New York Stock Exchange) held by non-affiliates was approximately $37.7 billion. As of January 31, 2020, there were approximately 189.8 million shares of the Registrant\u2019s Common Stock outstanding.",
"type": "body",
"path": "000:001:000",
"children": []
}
]
},
{
"index": 2,
"title": "DOCUMENTS INCORPORATED BY REFERENCE",
"name": "",
"content": "",
"type": "container",
"path": "000:002",
"children": [
{
"index": 0,
"title": "",
"name": "Incorporation by Reference of Definitive Proxy Statement for 2020 Annual Meeting of Stockholders",
"content": "Portions of the Registrant\u2019s definitive proxy statement for its 2020 Annual Meeting of Stockholders (Proxy Statement) to be filed within 120 days of the Registrant\u2019s fiscal year ended December 31, 2019, are incorporated by reference in Part III of this Report on Form 10-K.",
"type": "body",
"path": "000:002:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Exclusion of Proxy Statement from Form 10-K Filing",
"content": "Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as part of this Form 10-K.",
"type": "body",
"path": "000:002:001",
"children": []
}
]
},
{
"index": 3,
"title": "TABLE OF CONTENTS",
"name": "",
"content": "",
"type": "container",
"path": "000:003",
"children": []
},
{
"index": 4,
"title": "PART I Item 1 Business 1 Item 1A Risk Factors 10 Item 1B Unresolved Staff Comments 28 Item 2 Properties 28 Item 3 Legal Proceedings 28 Item 4 Mine Safety Disclosures 28",
"name": "",
"content": "",
"type": "container",
"path": "000:004",
"children": []
},
{
"index": 5,
"title": "PART II Item 5 Market for Registrant\u2019s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29 Item 6 Selected Consolidated Financial Data 31 Item 7 Management\u2019s Discussion and Analysis of Financial Condition and Results of Operations 32 Item 7A Quantitative and Qualitative Disclosures About Market Risk 50 Item 8 Consolidated Financial Statements and Supplementary Data 52 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 89 Item 9A Controls and Procedures 89 Item 9B Other Information 90",
"name": "",
"content": "",
"type": "container",
"path": "000:005",
"children": []
},
{
"index": 6,
"title": "PART III Item 10 Directors, Executive Officers and Corporate Governance 90 Item 11 Executive Compensation 90 Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 91 Item 13 Certain Relationships and Related Party Transactions and Director Independence 91 Item 14 Principal Accounting Fees and Services 91",
"name": "",
"content": "",
"type": "container",
"path": "000:006",
"children": []
},
{
"index": 7,
"title": "PART IV Item 15 Exhibits and Financial Statement Schedules 91 Item 16 Form 10-K Summary 95 Signatures 95 Index to Exhibits 92",
"name": "",
"content": "",
"type": "container",
"path": "000:007",
"children": []
},
{
"index": 8,
"title": "PART I",
"name": "",
"content": "",
"type": "container",
"path": "000:008",
"children": []
},
{
"index": 9,
"title": "FORWARD-LOOKING STATEMENTS",
"name": "",
"content": "",
"type": "container",
"path": "000:009",
"children": [
{
"index": 0,
"title": "",
"name": "Forward-Looking Statements Disclaimer in Annual Report",
"content": "This Annual Report on Form 10-K, including the \u201cManagement\u2019s Discussion and Analysis of Financial Condition and Results of Operations,\u201d contains forward-looking statements regarding future events and our future results that are based on our current expectations, estimates, forecasts and projections about our business, our results of operations, the industry in which we operate and the beliefs and assumptions of our management.",
"type": "body",
"path": "000:009:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Identification of Forward-Looking Statements Through Key Phrases",
"content": "Words such as \u201cbelieve,\u201d \u201cmay,\u201d \u201cwill,\u201d \u201cestimate,\u201d \u201ccontinue,\u201d \u201canticipate,\u201d \u201cwould,\u201d \u201ccould,\u201d \u201cshould,\u201d \u201cintend\u201d and \u201cexpect,\u201d variations of these words, and similar expressions are intended to identify those forward-looking statements.",
"type": "body",
"path": "000:009:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Disclaimer Regarding Forward-Looking Statements and Potential Discrepancies in Actual Results",
"content": "These forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict.Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements.",
"type": "body",
"path": "000:009:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "References to Risk Factors and SEC Filings Affecting Forward-Looking Statements",
"content": "Factors that might cause or contribute to such differences include, but are not limited to, those discussed in this Report under the section entitled \u201cRisk Factors\u201d in Item 1A of Part I and elsewhere herein, and in other reports we file with the Securities and Exchange Commission (SEC).",
"type": "body",
"path": "000:009:003",
"children": []
},
{
"index": 4,
"title": "",
"name": "Disclaimer on Reliance on Forward-Looking Statements",
"content": "While forward-looking statements are based on the reasonable expectations of our management at the time that they are made, you should not rely on them.",
"type": "body",
"path": "000:009:004",
"children": []
},
{
"index": 5,
"title": "",
"name": "Disclaimer of Obligation to Update Forward-Looking Statements",
"content": "We undertake no obligation to revise or update publicly any forward-looking statements for any reason, whether as a result of new information, future events or otherwise, except as may be required by law.",
"type": "body",
"path": "000:009:005",
"children": []
}
]
},
{
"index": 10,
"title": "ITEM 1. BUSINESS",
"name": "",
"content": "",
"type": "container",
"path": "000:010",
"children": [
{
"index": 0,
"title": "",
"name": "ServiceNow's Mission and Application Development for Workflow Automation",
"content": "ServiceNow\u2019s purpose is to make the world of work, work better for people. We believe that people should work the way they want to, so we build applications that help automate existing processes and create efficient, digitized workflows.",
"type": "body",
"path": "000:010:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Integration of Workflows Across Departments for Enhanced Efficiency and Experience",
"content": "Our products and services enable the steps of a job to flow naturally across disparate departments, systems and processes of a business. When work flows naturally, great experiences follow.",
"type": "body",
"path": "000:010:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Digital Workflows on the Now Platform\u00ae",
"content": "We deliver digital workflows on a single enterprise cloud platform called the Now Platform\u00ae.",
"type": "body",
"path": "000:010:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "Product Portfolio Focused on IT, Employee, and Customer Workflow Solutions",
"content": "Our product portfolio is currently focused on providing Information Technology (IT), Employee and Customer workflows in pre-packaged product offerings.",
"type": "body",
"path": "000:010:003",
"children": []
},
{
"index": 4,
"title": "",
"name": "Customer Use of Now Platform App Engine for Custom Workflow Applications",
"content": "We also enable our customers to use the Now Platform App Engine to design and build workflow applications that are purpose built for their own business.",
"type": "body",
"path": "000:010:004",
"children": []
},
{
"index": 5,
"title": "",
"name": "Definition and Challenges of Enterprise Workflows",
"content": "Getting a job done in an enterprise (what we call a \u201cworkflow\u201d) usually requires different people in various functions of an organization to work together. Often they rely on different technology systems and inefficient, manual processes.",
"type": "body",
"path": "000:010:005",
"children": []
},
{
"index": 6,
"title": "",
"name": "Example of New Hire Process and Departmental Coordination for Employee Onboarding",
"content": "One example, to illustrate, is the new hire process. When a new employee is hired, he or she needs to be set up in the employer\u2019s HR system of record and payroll, have a desk assigned, get a computer, get access to necessary internal systems, and perform other tasks. Successfully onboarding the new employee requires different departments of the business, utilizing different systems and databases, to coordinate and complete their specific tasks.",
"type": "body",
"path": "000:010:006",
"children": []
},
{
"index": 7,
"title": "",
"name": "Digital Workflow Platform for Streamlined Employee Onboarding Tasks",
"content": "Our digital workflow platform transforms the old, manual ways of completing these tasks.",
"type": "body",
"path": "000:010:007",
"children": []
},
{
"index": 8,
"title": "",
"name": "Manager Approval and Subsequent Notifications for New Hire Onboarding Process",
"content": "A new employee\u2019s manager approves the new hire\u2019s specifics in the HR systems; that approval triggers a notification to the facilities team so they can assign a desk to the new employee; that assignment triggers a notification to the IT group for computer and systems access configuration, etc.",
"type": "body",
"path": "000:010:008",
"children": []
},
{
"index": 9,
"title": "",
"name": "Now Platform Usage Requirement for Workflow Participants",
"content": "Each person acting in this workflow only needs to use the Now Platform.",
"type": "body",
"path": "000:010:009",
"children": []
},
{
"index": 10,
"title": "",
"name": "Explanation of Digital Workflow Management Capabilities and Benefits",
"content": "The digital management of this workflow is possible because our technology platform hides the complexity of working across multiple, siloed departments and systems of record to make work flow more seamlessly. This enables our customers to deliver their employees the experiences they want and their customers the service they expect.",
"type": "body",
"path": "000:010:010",
"children": []
},
{
"index": 11,
"title": "",
"name": "Enterprise-Wide Application of Digital Workflow Management Tools in Complex Workflows",
"content": "Our digital workflow management tools are applied across an enterprise and in complex and sophisticated workflows.",
"type": "body",
"path": "000:010:011",
"children": []
},
{
"index": 12,
"title": "",
"name": "The Now Platform as the Foundation for IT, Employee, and Customer Workflow Offerings",
"content": "The Now Platform is the foundation of our IT, Employee and Customer workflow offerings. The Now Platform has one code base and one data model, which allows our applications and those developed by our customers to work seamlessly with each other.",
"type": "body",
"path": "000:010:012",
"children": []
},
{
"index": 13,
"title": "",
"name": "Applicability of Enterprise Workflows to Now Platform-Based Applications",
"content": "Any workflow used in an enterprise is a candidate for a Now Platform-based application.",
"type": "body",
"path": "000:010:013",
"children": []
},
{
"index": 14,
"title": "",
"name": "Role of Native Mobile Applications in Automated Workflow Deployment",
"content": "Our native mobile applications greatly assist in the roll-out of automated workflows to our customer\u2019s employees.",
"type": "body",
"path": "000:010:014",
"children": []
},
{
"index": 15,
"title": "",
"name": "Third-party Application Development and Distribution on Now Platform",
"content": "Third-party developers can also build applications on the Now Platform App Engine and can make them available for download at our ServiceNow Store.",
"type": "body",
"path": "000:010:015",
"children": []
},
{
"index": 16,
"title": "",
"name": "Software Delivery via Internet as a Service with User-Friendly Interface for Rapid Deployment and Custom Application Development",
"content": "We primarily deliver our software via the Internet as a service through a simple and easy-to-use interface so that we can rapidly deploy our packaged offerings, and customers can easily build their custom applications.",
"type": "body",
"path": "000:010:016",
"children": []
},
{
"index": 17,
"title": "",
"name": "Self-Hosted or Third-Party Hosted Software Option for Customers",
"content": "In a minority of cases, customers choose to host our software by themselves or through a third-party service provider.",
"type": "body",
"path": "000:010:017",
"children": []
}
]
},
{
"index": 11,
"title": "1 Table of Contents",
"name": "",
"content": "",
"type": "container",
"path": "000:011",
"children": [
{
"index": 0,
"title": "",
"name": "Description of Product and Service Offerings and Sales Channels",
"content": "We market and sell our products and services to enterprises across industries, including government, financial services, healthcare, telecommunications, manufacturing, IT services, technology, oil and gas, education and consumer products. We sell our products through subscription services and primarily through direct sales. We also offer professional services, both directly and through partners, to help our customers deploy and utilize our products and platform.",
"type": "body",
"path": "000:011:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Corporate Formation and Name Change History (2004-2006)",
"content": "We were incorporated as Glidesoft, Inc. in California in June 2004 and changed our name to Service-now.com in February 2006.",
"type": "body",
"path": "000:011:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Reincorporation in Delaware as ServiceNow, Inc. in May 2012",
"content": "In May 2012, we reincorporated in Delaware as ServiceNow, Inc.",
"type": "body",
"path": "000:011:002",
"children": []
},
{
"index": 3,
"title": "Our Products",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003",
"children": [
{
"index": 0,
"title": "",
"name": "Description of the Now Platform and Pre-Packaged Workflow Automation Applications",
"content": "Our portfolio includes the Now Platform, and pre-packaged applications specifically designed for automating IT, Employee and Customer workflows.",
"type": "body",
"path": "000:011:003:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Description of the Now Platform's Capabilities in Custom Workflow Creation and Application Development",
"content": "The Now Platform supports custom workflow creation and application development (the Now Platform App Engine) and a third-party application marketplace (the ServiceNow Store).",
"type": "body",
"path": "000:011:003:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Role of Products and Services in Digital Transformation and Workflow Integration",
"content": "Each of our products and services helps in critical aspects of our customers\u2019 digital transformation process, and some of these products and services, as captured in the graphic and described below, are used in multiple workflows.",
"type": "body",
"path": "000:011:003:002",
"children": []
},
{
"index": 3,
"title": "The Now Platform and Now Platform App Engine",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:003",
"children": [
{
"index": 0,
"title": "",
"name": "Capabilities of the Now Platform for Workflow Management and Enterprise Service Delivery",
"content": "The Now Platform allows our customers to manage workflows across all of their systems using a common user interface. This allows us to deliver specific enterprise applications and services (e.g., employee on-boarding as described above), which spans multiple departments, back-end systems and processes across an organization.",
"type": "body",
"path": "000:011:003:003:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Supported Services on the Now Platform",
"content": "Among the many services that our platform supports are workflow automation, electronic service catalogs and portals, configuration management systems, data benchmarking, performance analytics, encryption and collaboration and development tools.",
"type": "body",
"path": "000:011:003:003:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Product Integration on the Now Platform for Unified Workflow Management",
"content": "All of our products are built on the Now Platform, which allows our customers to create a common user experience to manage workflows across all of their systems.",
"type": "body",
"path": "000:011:003:003:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "Native Mobile Experiences Powered by the Now Platform",
"content": "The Now Platform also powers three native mobile experiences for everyday work across the enterprise: Virtual Agent, Now Mobile and Mobile Onboarding. Enterprises can take advantage of consumer-like, mobile experiences, such as getting help from human resources or ordering a computer, from our platform.",
"type": "container",
"path": "000:011:003:003:003",
"children": [
{
"index": 0,
"title": "",
"name": "Objective to Simplify and Enhance Customer Work Lives with Mobile-Friendly Solutions",
"content": "Our goal is to make our customers\u2019 work lives as simple, easy and mobile-friendly as their personal lives.",
"type": "body",
"path": "000:011:003:003:003:000",
"children": []
}
]
},
{
"index": 4,
"title": "",
"name": "Description of the Now Platform App Engine Capabilities",
"content": "Our platform also features the Now Platform App Engine, which enables customers and third-party developers to create, test and deploy their own applications. They can do so within an integrated development environment while leveraging the single data model and common services of the Now Platform.",
"type": "body",
"path": "000:011:003:003:004",
"children": []
},
{
"index": 5,
"title": "",
"name": "Examples of Customer-Developed Applications Using Now Platform App Engine",
"content": "Examples of applications our customers have developed include: an application developed by a company with a large network of seasonal retail stores and offices to track progress and identify issues in opening and closing their seasonal retail stores and offices, which enabled significant cost savings; an application developed by the IT office of a university that allocated and billed costs associated with IT maintenance, allowing the university to retire multiple legacy software systems; and an application developed by a mortgage company to ensure that loan files were complete and accurate prior to packaging and selling the loans to investors.",
"type": "container",
"path": "000:011:003:003:005",
"children": [
{
"index": 0,
"title": "",
"name": "Applications Developed and Deployed Using Now Platform App Engine Available on ServiceNow Store",
"content": "These types of applications which extend the automation of our customers\u2019 workflows have been developed and deployed by our customers and third-party developers using the Now Platform App Engine, and many are available through our marketplace (ServiceNow Store).",
"type": "body",
"path": "000:011:003:003:005:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Description of the ServiceNow Store and Its Benefits",
"content": "The ServiceNow Store has hundreds of certified, ready to use applications from a growing independent software vendor ecosystem. The ServiceNow Store enables departments across an enterprise to do more with the Now Platform with certified applications that complement and extend the Now Platform into new use cases.",
"type": "body",
"path": "000:011:003:003:005:001",
"children": []
}
]
}
]
},
{
"index": 4,
"title": "IT Workflows",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:004",
"children": [
{
"index": 0,
"title": "",
"name": "Origin and Purpose of Company's IT Workflow Systems",
"content": "Our company\u2019s roots are in IT workflows. Our founder initially saw a need for an integrated system in IT that identified issues, assigned those issues to the right people for resolution and remediated any systemic problems that created the issues.",
"type": "body",
"path": "000:011:003:004:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Advanced Capabilities of IT Products in Supporting IT Departments",
"content": "Our IT products have become increasingly sophisticated in assisting IT departments to serve their customers, manage their networks, identify and remediate threats and develop and build their products.",
"type": "body",
"path": "000:011:003:004:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Bridging Traditional IT Practices with Modern Business Needs through IT Workflows",
"content": "With our IT workflows, we help customers bridge the gap between traditional IT practices and the needs of modern businesses.",
"type": "body",
"path": "000:011:003:004:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "Overview of IT Workflow Products and Their Applications in Employee and Customer Workflows",
"content": "The following is an overview of the IT workflow products we offer; many of these products are also used in our Employee and Customer workflows.",
"type": "body",
"path": "000:011:003:004:003",
"children": []
},
{
"index": 4,
"title": "Now IT Service Management",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:004:004",
"children": [
{
"index": 0,
"title": "",
"name": "Overview of IT Service Management (ITSM) Capabilities and Functions",
"content": "As our flagship product suite, IT Service Management (ITSM) defines, structures, consolidates, manages and automates the IT services an enterprise offers its employees, customers and partners.",
"type": "body",
"path": "000:011:003:004:004:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "ITSM Product Suite Capabilities: Incident Recording, Problem Remediation, and Routine Task Automation",
"content": "Among the ITSM product suite\u2019s capabilities are recording incidents, remediating problems and automating routine tasks and requests.",
"type": "body",
"path": "000:011:003:004:004:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Enhancement of IT Service Experience through ITSM",
"content": "With ITSM, our customers can elevate their IT service experience by improving IT productivity, achieving new insights and consolidating IT services.",
"type": "body",
"path": "000:011:003:004:004:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "Customer Service Portals for IT Service Requests, Software\/Hardware Orders, and Incident Submissions",
"content": "For example, we enable our customers to provide service portals where their employees can request IT services, order software and hardware and submit IT incidents all in one place.",
"type": "body",
"path": "000:011:003:004:004:003",
"children": []
}
]
},
{
"index": 5,
"title": "Now IT Business Management",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:004:005",
"children": [
{
"index": 0,
"title": "",
"name": "Overview of IT Business Management (ITBM) Product Suite Capabilities",
"content": "Our IT Business Management (ITBM) product suite enables customers to manage their IT priorities, including the scope and cost of IT projects, the development of software related to those projects and the overall management of the customer\u2019s IT project portfolio.",
"type": "body",
"path": "000:011:003:004:005:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Customer Benefits of IT Business Management (ITBM) Product Suite",
"content": "With ITBM, we help our customers gain visibility, track progress, and continuously plan and optimize resources as priorities shift.",
"type": "body",
"path": "000:011:003:004:005:001",
"children": []
}
]
},
{
"index": 6,
"title": "Now DevOps",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:004:006",
"children": [
{
"index": 0,
"title": "",
"name": "Overview of Enterprise DevOps Product Features and Integration Capabilities",
"content": "Our enterprise DevOps product provides visibility across a product development toolchain. It integrates with the leading DevOps toolchains to provide automated change management, information gathering and collecting and a single dashboard across planning, development, testing, deployment and operations.",
"type": "body",
"path": "000:011:003:004:006:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Benefits of DevOps for Streamlining Software Development and Deployment",
"content": "With DevOps, our customers can streamline their software development and deployment processes.",
"type": "body",
"path": "000:011:003:004:006:001",
"children": []
}
]
},
{
"index": 7,
"title": "Now IT Operations Management",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:004:007",
"children": [
{
"index": 0,
"title": "",
"name": "Description and Benefits of IT Operations Management (ITOM) Product Suite",
"content": "Our IT Operations Management (ITOM) product suite connects a customer\u2019s physical and cloud-based IT infrastructure with our applications and platform. It identifies a customer\u2019s IT infrastructure components (e.g., servers) and associated business services (e.g., email) which are dependent upon that infrastructure. It also maintains a single data record for all IT configurable items, which allows our customers to exercise control over their on-premises or cloud-based infrastructures and orchestrate key processes and tasks. With ITOM, our customers can enhance visibility of IT resources, manage service health and optimize cloud delivery and spend.",
"type": "body",
"path": "000:011:003:004:007:000",
"children": []
}
]
},
{
"index": 8,
"title": "Now IT Asset Management",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:004:008",
"children": [
{
"index": 0,
"title": "",
"name": "Automation of IT Asset Lifecycles with Detailed Tracking Workflows",
"content": "Our IT Asset Management (ITAM) product automates customers\u2019 IT asset lifecycles with workflows to track the financial, contractual and inventory details of IT and non-IT assets throughout their lifecycles.",
"type": "container",
"path": "000:011:003:004:008:000",
"children": [
{
"index": 0,
"title": "",
"name": "Customer Benefits: Visibility into IT Asset Lifecycle for Cost Optimization and Workflow Automation",
"content": "With ITAM, our customers gain visibility into the full IT asset lifecycle to help optimize costs and automate workflows.",
"type": "body",
"path": "000:011:003:004:008:000:000",
"children": []
}
]
}
]
},
{
"index": 9,
"title": "Now Security Operations",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:004:009",
"children": [
{
"index": 0,
"title": "",
"name": "Functionality of Security Operations Product in Integrating and Responding to Security Alerts",
"content": "Our security operations product connects with internal and third-party security alerts from a customer\u2019s infrastructure to prioritize and respond to incidents and vulnerabilities according to their potential impact on a customer\u2019s business.",
"type": "body",
"path": "000:011:003:004:009:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Components of Security Operations Product",
"content": "Our security operations product includes security incident management, threat enrichment intelligence, vulnerability response management and security incident intelligence sharing.",
"type": "body",
"path": "000:011:003:004:009:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Simplification of Incident Response Through Automated Security Orchestration and Prioritization",
"content": "With our security operations product, we help simplify our customers\u2019 incident response by allowing them to replace manual tasks with automated security orchestration and to prioritize and remediate vulnerabilities and security incidents.",
"type": "body",
"path": "000:011:003:004:009:002",
"children": []
}
]
},
{
"index": 10,
"title": "Now Integrated Risk Management",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:004:010",
"children": [
{
"index": 0,
"title": "",
"name": "Integrated Risk Management Product: Policy Creation, Regulatory Compliance, and Real-Time Risk Monitoring",
"content": "Our integrated risk management product creates a common set of policies and controls to help our customers meet the requirements of an ever-expanding regulatory environment. It also allows our customers to be more resilient and monitor risk and compliance events in real time to take action to remediate and mitigate risks.",
"type": "body",
"path": "000:011:003:004:010:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Customer Risk Assessment and Strategic Decision-Making with Continuous Monitoring and Prioritization",
"content": "With our integrated risk management product, customers can assess risk and make strategic decisions with confidence by being able to continuously monitor and prioritize risks.",
"type": "body",
"path": "000:011:003:004:010:001",
"children": []
}
]
}
]
},
{
"index": 5,
"title": "Employee Workflows",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:005",
"children": [
{
"index": 0,
"title": "",
"name": "Overview of Employee Workflow Products and Their Benefits",
"content": "Our Employee workflow products provide service at every stage of an employee\u2019s engagement with an employer. With our Employee Workflows, our customers can simplify how their employees get the services they need, to help improve employee satisfaction and boost productivity.",
"type": "body",
"path": "000:011:003:005:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Employee Workflows Enabled by Now HR Service Delivery, Finance Operations Management, and ITSM",
"content": "We enable Employee workflows through our Now HR Service Delivery and Now Finance Operations Management products, in addition to ITSM.",
"type": "body",
"path": "000:011:003:005:001",
"children": []
},
{
"index": 2,
"title": "Now HR Service Delivery",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:005:002",
"children": [
{
"index": 0,
"title": "",
"name": "Overview of HR Service Delivery Product Functions",
"content": "Our HR service delivery product defines, structures, consolidates, manages and automates HR services related to employee requests.",
"type": "body",
"path": "000:011:003:005:002:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "HR Service Delivery Capabilities Including Case Management and Lifecycle Event Management",
"content": "HR service delivery capabilities include HR case management, employee self-service, knowledge management and management of employee lifecycle events across multiple departments, such as onboarding, transfers and off-boarding.",
"type": "body",
"path": "000:011:003:005:002:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Automation and Orchestration of Cross-Departmental HR Tasks",
"content": "For example, tasks that start in HR but require action from other departments, such as new hire equipment selection and fulfillment, can be easily automated and orchestrated.",
"type": "body",
"path": "000:011:003:005:002:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "Advantages of HR Service Delivery for Resource Efficiency and Employee Lifecycle Management",
"content": "With HR service delivery, we make it easy for our customers\u2019 employees to get the services they need, allowing our customers to use fewer resources to serve more employees, streamline employee lifecycle events, and increase visibility, staffing efficiency and delivery of services.",
"type": "body",
"path": "000:011:003:005:002:003",
"children": []
}
]
},
{
"index": 3,
"title": "Now Finance Operations Management",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:005:003",
"children": [
{
"index": 0,
"title": "",
"name": "Finance Close Automation (FCA) Overview and Integration with ERP Systems",
"content": "Our finance operations management product and its first application, Finance Close Automation (FCA), are built for the office of the CFO. FCA is designed to complement enterprise resource planning (ERP) systems and digitize workflows to accelerate the financial statement close process and reduce financial close risks.",
"type": "body",
"path": "000:011:003:005:003:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Centralized Workspace for Enhanced Financial Systems Management with FCA",
"content": "With FCA, our customers can connect their finance teams, tasks and systems in a centralized workspace and manage their financial systems more effectively.",
"type": "body",
"path": "000:011:003:005:003:001",
"children": []
}
]
}
]
},
{
"index": 6,
"title": "Customer Workflows",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:006",
"children": [
{
"index": 0,
"title": "",
"name": "Purpose and Benefits of Customer Workflow Products",
"content": "Our Customer workflow products help enterprises create a seamless experience for their customers - from identifying a customer issue to resolving that issue and its underlying cause.",
"type": "container",
"path": "000:011:003:006:000",
"children": [
{
"index": 0,
"title": "",
"name": "Enhancing Customer Loyalty and Proactively Resolving Issues Through Customer Workflows",
"content": "With our Customer workflows, we help our customers increase customer loyalty and, in some cases, fix issues before they are known to their customers.",
"type": "body",
"path": "000:011:003:006:000:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Customer Workflow Enablement via Now Customer Service Management, Now Field Service Management, and ITOM",
"content": "We enable Customer workflows through Now Customer Service Management and Now Field Service Management products, in addition to ITOM.",
"type": "body",
"path": "000:011:003:006:000:001",
"children": []
}
]
},
{
"index": 1,
"title": "Now Customer Service Management",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:006:001",
"children": [
{
"index": 0,
"title": "",
"name": "Functionality and Automation Capabilities of Customer Service Management Product",
"content": "Our customer service management product defines, structures, consolidates, manages and automates customer service cases and requests. It allows common customer requests, such as password resets, to be automated with out-of-the-box self-service, and for other cases it routes work from the customer service agent to field service, engineering, operations, finance or legal personnel to resolve the underlying issues.",
"type": "body",
"path": "000:011:003:006:001:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Customer Service Management Benefits: Enhanced Efficiency and Service Quality",
"content": "With customer service management, we help our customers elevate their customer service by boosting resolution efficiency and improving service quality through service automation and management.",
"type": "body",
"path": "000:011:003:006:001:001",
"children": []
}
]
},
{
"index": 2,
"title": "Now Field Service Management",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:006:002",
"children": [
{
"index": 0,
"title": "",
"name": "Field Service Agent Assignment and Management on Customer Service Platform",
"content": "Our field service management product allows field service agents to be effectively assigned, deployed and managed on the same underlying customer service management platform that created and managed the customer incident.",
"type": "body",
"path": "000:011:003:006:002:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Field Service Management for Efficient Task Scheduling and Dispatch",
"content": "With field service management, we help our customers efficiently manage location-based work tasks, including dynamic scheduling and visual dispatch.",
"type": "body",
"path": "000:011:003:006:002:001",
"children": []
}
]
}
]
},
{
"index": 7,
"title": "Professional Services",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:007",
"children": [
{
"index": 0,
"title": "",
"name": "Overview of Professional Services and Customer Success Programs",
"content": "Our professional services include expert services and customer success programs, offered by ServiceNow alone and in a co-delivery model with our network of partners, to help customers become proficient in the use of our platform and to maximize the value of their ServiceNow investment.",
"type": "body",
"path": "000:011:003:007:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Definition of Expert Services Including Process Design, Implementation, Configuration, Architecture, and Optimization",
"content": "Expert services include process design (including identifying inefficiencies in existing workflows), implementation, configuration, architecture and optimization services.",
"type": "body",
"path": "000:011:003:007:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Support for Enterprise Digital Transformations in Service Management Strategy and Roadmap",
"content": "Our focus is on supporting customers as they embark on enterprise digital transformations to reimagine their service management strategy and roadmap.",
"type": "body",
"path": "000:011:003:007:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "Details of Customer Success Programs Including Training, Certification, and Support Resources",
"content": "Customer success programs include training and certification programs for all of our products, expertise from support professionals and our Customer Success Center, an online resource.",
"type": "body",
"path": "000:011:003:007:003",
"children": []
}
]
},
{
"index": 8,
"title": "Customer Support",
"name": "",
"content": "",
"type": "container",
"path": "000:011:003:008",
"children": [
{
"index": 0,
"title": "",
"name": "24\/7 Global Customer Support Availability",
"content": "As part of their subscription, customers receive support 24 hours a day, seven days a week around the globe, from technical resources located in the United States and internationally.",
"type": "body",
"path": "000:011:003:008:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Self-Service Technical Support via Online Support Portal",
"content": "We also offer self-service technical support through our support portal, which provides access to documentation, knowledge base articles, online training, online support forums and online incident filing.",
"type": "body",
"path": "000:011:003:008:001",
"children": []
}
]
}
]
},
{
"index": 4,
"title": "Our Technology and Operations",
"name": "",
"content": "",
"type": "container",
"path": "000:011:004",
"children": [
{
"index": 0,
"title": "",
"name": "Description of Multi-Instance Architecture and Development Environment",
"content": "We operate a multi-instance architecture that provides each customer with its own dedicated application logic and database. This architecture is designed to deliver high-availability, scalability, performance, security and ease of upgrading. We have a standardized, Java-based development environment, with the majority of our software written in industry-standard software programming languages.",
"type": "body",
"path": "000:011:004:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Composition of Cloud Infrastructure and Database Systems",
"content": "Our cloud infrastructure primarily consists of industry-standard servers, networks and storage components. Our operating system is Linux and databases are MySQL and MariaDB.",
"type": "body",
"path": "000:011:004:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Hosting of Software-as-a-Service on Private and Public Clouds for Regulated Customers",
"content": "We host our full software-as-a-service experience on our own private cloud and intend to host it using public cloud service providers for certain highly regulated customers.",
"type": "body",
"path": "000:011:004:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "Data Center Locations and High-Availability Configuration",
"content": "Our data centers operate in paired configurations to enable replication for high-availability and redundancy. We currently operate data centers in Australia, Brazil, Canada, Germany, Hong Kong, Japan, the Netherlands, Singapore, Switzerland, the United Kingdom and the United States, and we continuously evaluate our data center operations and capacity in existing and new geographies.",
"type": "body",
"path": "000:011:004:003",
"children": []
},
{
"index": 4,
"title": "",
"name": "Option for Customers to Deploy Services on Dedicated Hardware in Data Centers",
"content": "We offer customers the option to deploy our services on dedicated hardware in our data centers.",
"type": "body",
"path": "000:011:004:004",
"children": []
},
{
"index": 5,
"title": "",
"name": "Title: Internal or Third-Party Deployment Options for Regulatory and Security Compliance",
"content": "Our architecture also gives us the added flexibility to allow customers the option of deploying our services internally or under contract with a third party to host the software in order to support unique regulatory or security requirements, and, while there are some limitations on agility and flexibility as compared to our cloud offering, a minority of our customers have elected this alternative.",
"type": "container",
"path": "000:011:004:005",
"children": [
{
"index": 0,
"title": "",
"name": "Customer Support Equivalence for Self-Hosted and Managed Data Center Deployments",
"content": "The customer support we provide for self-hosted customers is similar to the support we provide to customers deployed in our managed data centers.",
"type": "body",
"path": "000:011:004:005:000",
"children": []
}
]
}
]
},
{
"index": 5,
"title": "Sales and Marketing",
"name": "",
"content": "",
"type": "container",
"path": "000:011:005",
"children": [
{
"index": 0,
"title": "",
"name": "Primary Sales Channels and Distribution Partnerships",
"content": "We sell our product offerings and services primarily through our global direct sales organization. We also sell services through managed services providers and resale partners.",
"type": "body",
"path": "000:011:005:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Marketing and Lead Generation Activities Overview",
"content": "Our marketing efforts and lead generation activities consist primarily of customer referrals, digital advertising (including via our website), trade shows, industry events, brand campaigns and press releases.",
"type": "body",
"path": "000:011:005:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Annual Knowledge User Conference and Other Educational User Forums",
"content": "We also host our annual Knowledge user conference, webinars and other user forums, including regional forums which we call Now@Work, where customers and partners both participate in and present on a variety of programs designed to educate them on industry best practices and help accelerate their success with our services.",
"type": "body",
"path": "000:011:005:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "Expansion of Sales Capabilities in New Geographies Through Diverse Investments",
"content": "We continue to expand our sales capabilities in new geographies, including through investments in direct and indirect sales channels, professional services capabilities, customer support resources, post-sales customer support resources and strategic alliance and implementation partners.",
"type": "body",
"path": "000:011:005:003",
"children": []
},
{
"index": 4,
"title": "",
"name": "Planned Investment Increase in Existing Locations for Sales and Marketing Scale Efficiencies",
"content": "We also plan to increase our investment in our existing locations in order to achieve scale efficiencies in our sales and marketing efforts.",
"type": "body",
"path": "000:011:005:004",
"children": []
}
]
},
{
"index": 6,
"title": "Customers",
"name": "",
"content": "",
"type": "container",
"path": "000:011:006",
"children": [
{
"index": 0,
"title": "",
"name": "Primary Market and Deployment Services for Large Enterprise Customers",
"content": "We primarily sell our services to large enterprise customers, and we host and support large, enterprise-wide deployments for our customers.",
"type": "body",
"path": "000:011:006:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Customer Base as of December 31, 2019",
"content": "As of December 31, 2019, we had approximately 6,200 enterprise customers.",
"type": "body",
"path": "000:011:006:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Industry Diversity of Customer Base",
"content": "Our customers operate in a wide variety of industries, including government, financial services, healthcare, manufacturing, IT services, technology, oil and gas, telco, education and consumer products.",
"type": "body",
"path": "000:011:006:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "Revenue Diversification Among Customers",
"content": "No single customer accounted for more than 10% of our revenues for any of the periods presented.",
"type": "body",
"path": "000:011:006:003",
"children": []
}
]
},
{
"index": 7,
"title": "Remaining Performance Obligations",
"name": "",
"content": "",
"type": "container",
"path": "000:011:007",
"children": [
{
"index": 0,
"title": "",
"name": "Remaining Performance Obligations (RPO) as of December 31, 2019 and 2018",
"content": "Our remaining performance obligations (RPO) were $6.6 billion and $4.9 billion as of December 31, 2019 and 2018, respectively. RPO represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancelable amounts that will be invoiced and recognized as revenue in future periods.",
"type": "body",
"path": "000:011:007:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "RPO as Indicator of Firm Customer Backlog Orders Aligned with Revenue Recognition Standard",
"content": "We believe RPO, which excludes customer deposits and time and materials contracts, is an indicator of customer backlog orders believed to be firm that is aligned with the current revenue recognition standard.",
"type": "body",
"path": "000:011:007:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Reference to Note 9 for Additional Information on Remaining Performance Obligations",
"content": "Refer to Note 9 in the notes to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K for additional information on remaining performance obligations.",
"type": "body",
"path": "000:011:007:002",
"children": []
}
]
},
{
"index": 8,
"title": "Research and Development",
"name": "",
"content": "",
"type": "container",
"path": "000:011:008",
"children": [
{
"index": 0,
"title": "",
"name": "Research and Development Responsibilities and Focus Areas",
"content": "Our research and development organization is responsible for the design, development, testing and validation of our solutions. We focus on innovating and developing new services and core technologies and further enhancing the functionality, reliability and performance of our existing solutions.",
"type": "container",
"path": "000:011:008:000",
"children": [
{
"index": 0,
"title": "",
"name": "Utilization of Emerging Technologies to Anticipate Customer Demands and Expedite Market Introduction of New Services",
"content": "Using emerging technologies, we can anticipate customer demands and then bring new services and new versions of existing services to market quickly in order to remain competitive in the marketplace.",
"type": "body",
"path": "000:011:008:000:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Commitment to Ongoing Research and Development Investments",
"content": "We have made, and will continue to make, significant investments in research and development to strengthen our existing applications, expand the number of applications on our platform, enhance our user experience and develop additional mobile, automation and machine intelligence technologies.",
"type": "body",
"path": "000:011:008:000:001",
"children": []
}
]
}
]
},
{
"index": 9,
"title": "Acquisitions and Investments",
"name": "",
"content": "",
"type": "container",
"path": "000:011:009",
"children": [
{
"index": 0,
"title": "",
"name": "Strategic Acquisitions and Investments to Complement Technology and Expand Product Reach",
"content": "In addition to continuing to invest in our own research and development efforts, we have made acquisitions and investments in the past and will continue to assess opportunities for strategic acquisitions and investments to complement our technology and skill sets and expand our product reach.",
"type": "body",
"path": "000:011:009:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Strategic Platform and Product Development through Acquisitions and Investments to Meet Customer Needs",
"content": "Our focus is on building out our platform and products through both acquisitions and investments to support customer needs.",
"type": "body",
"path": "000:011:009:001",
"children": []
}
]
},
{
"index": 10,
"title": "Competition",
"name": "",
"content": "",
"type": "container",
"path": "000:011:010",
"children": [
{
"index": 0,
"title": "",
"name": "Competitive Market Dynamics and Anticipated Intensification",
"content": "We compete in markets that are rapidly evolving and highly competitive, with relatively low barriers to entry. As these markets continue to mature and new technologies and competitors enter such markets, we expect competition to intensify.",
"type": "body",
"path": "000:011:010:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "List of Current Competitors in the Market",
"content": "Our current competitors include:\n- large, well-established, enterprise application software vendors and large integrated systems vendors;\n- new entrants to the market developing technologies to solve similar problems in different ways;\n- solutions developed in-house by our potential customers or using integrations with other tools;\n- vendors of infrastructure-as-a-service, platform-as-a-service providers and development operations; and\n- established and emerging cloud vendors.",
"type": "body",
"path": "000:011:010:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Customer Reluctance to Migrate Due to Prior Investments in Enterprise Software",
"content": "Many prospective customers have invested substantial personnel and financial resources to implement and integrate their current enterprise software into their businesses and therefore may be reluctant or unwilling to migrate away from their current solution to ours. Accordingly, we compete with both cloud-based and traditional, enterprise-application, software vendors.",
"type": "body",
"path": "000:011:010:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "Anticipated Increase in Competition from Platform and Application Development Vendors",
"content": "Our competitors vary in size and in the breadth and scope of the products and services they offer. As we continue to expand the breadth of our services to include offerings in new markets, we expect increasing competition from platform and application development vendors focused on these markets.",
"type": "body",
"path": "000:011:010:003",
"children": []
},
{
"index": 4,
"title": "",
"name": "Key Factors Influencing Purchase Decisions and Competitive Positioning",
"content": "Various factors influence purchase decisions in our industry, including total cost of ownership, level of customer satisfaction, breadth and depth of product functionality, security, adherence to industry standards, brand awareness, flexibility and performance. We believe that we compete favorably with our competitors on each of these factors.",
"type": "body",
"path": "000:011:010:004",
"children": []
},
{
"index": 5,
"title": "",
"name": "Competitors' Superior Resources and Agility in Market Response",
"content": "However, many of our competitors have substantially greater financial, technical and other resources. They may be able to respond more quickly and effectively than we can to new or changing opportunities, technologies, standards, customer requirements and buying practices.",
"type": "body",
"path": "000:011:010:005",
"children": []
},
{
"index": 6,
"title": "",
"name": "Risk of Competitors Introducing or Utilizing Technology to Reduce Demand for Our Services",
"content": "An existing competitor or potential competitor could introduce new technology, or more effectively utilize existing technology, that reduces demand for our services.",
"type": "body",
"path": "000:011:010:006",
"children": []
},
{
"index": 7,
"title": "",
"name": "Impact of Industry Consolidation on Competitive Position",
"content": "Acquisitions, integrations and consolidation by and among other companies in our industry may allow potential competitors to offer integrated or bundled products, enhanced functionality, or other advantages, which may impact our competitive position.",
"type": "body",
"path": "000:011:010:007",
"children": []
},
{
"index": 8,
"title": "",
"name": "Pricing Pressures Due to Competitors' Lower Prices and Bundling Flexibility",
"content": "In addition, some of our competitors offer their products or services at a lower price, which has resulted in pricing pressures. Larger competitors may also have the operating flexibility to bundle competing products and services with other offerings, which may enable them to offer their products and services at a lower price.",
"type": "body",
"path": "000:011:010:008",
"children": []
},
{
"index": 9,
"title": "",
"name": "Expectation of Ongoing or Increasing Pricing Competition Due to Market Intensification",
"content": "As competition intensifies, we expect pricing competition to continue or increase.",
"type": "body",
"path": "000:011:010:009",
"children": []
}
]
},
{
"index": 11,
"title": "Intellectual Property",
"name": "",
"content": "",
"type": "container",
"path": "000:011:011",
"children": [
{
"index": 0,
"title": "",
"name": "Intellectual Property Protection Measures and Legal Frameworks",
"content": "We rely upon a combination of U.S. and international copyright, trade secret, patent and trademark laws and confidentiality procedures and contractual restrictions, such as confidentiality and license agreements, to establish, protect and grow our intellectual property (IP) rights.",
"type": "body",
"path": "000:011:011:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Confidentiality and Proprietary Rights Agreements with Stakeholders and Access Control to IP",
"content": "In addition, we enter into confidentiality and proprietary rights agreements with our employees, partners, vendors, consultants and other third parties and control access to our IP and other proprietary information.",
"type": "body",
"path": "000:011:011:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Technology Acquisition and Licensing for Product Integration",
"content": "We also purchase or license technology that we incorporate into our products or services.",
"type": "body",
"path": "000:011:011:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "Intellectual Property Rights in Partnership-Developed Technology on the Now Platform",
"content": "In certain of our partnership arrangements, our partners may develop technology on the Now Platform that may be subject to copyright or other intellectual property rights that we may agree to with the partner.",
"type": "body",
"path": "000:011:011:003",
"children": []
},
{
"index": 4,
"title": "",
"name": "Expansion of Global Patent Portfolio and IP Rights",
"content": "We continue to grow our global patent portfolio and IP rights that relate to our platform, applications, services, research and development and other activities.",
"type": "body",
"path": "000:011:011:004",
"children": []
},
{
"index": 5,
"title": "",
"name": "Dependence on Protecting Core Technology and Intellectual Property for Success",
"content": "Our success depends in part upon our ability to protect our core technology and IP.",
"type": "body",
"path": "000:011:011:005",
"children": []
},
{
"index": 6,
"title": "",
"name": "Patent Portfolio and Pending Applications Overview",
"content": "We have over 700 U.S. and foreign patents, including patents acquired from third parties, and over 780 pending patent applications.",
"type": "body",
"path": "000:011:011:006",
"children": []
},
{
"index": 7,
"title": "",
"name": "Assertion of Independence from Individual Patents or IP Rights",
"content": "We do not believe that our proprietary technology is dependent on any single patent or other IP right or group of related patents or IP rights.",
"type": "body",
"path": "000:011:011:007",
"children": []
},
{
"index": 8,
"title": "",
"name": "Uncertainty in Patent Application Outcomes and Value",
"content": "We file patent applications to protect our IP and have and may continue to acquire additional patents, patent portfolios, or patent applications. However, we cannot be certain that any of our patent applications will result in the issuance of a patent or whether the examination process will result in patents of value or applicability.",
"type": "body",
"path": "000:011:011:008",
"children": []
},
{
"index": 9,
"title": "",
"name": "Potential Challenges and Limitations of Patent Protection Enforcement",
"content": "In addition, any patents that have been or may be issued or acquired may be contested, circumvented, found unenforceable or invalidated, and we may not be able to prevent third parties from infringing upon them.",
"type": "body",
"path": "000:011:011:009",
"children": []
},
{
"index": 10,
"title": "",
"name": "Unauthorized Use and Policing Challenges of Proprietary Technology",
"content": "Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to copy or obtain and use our technology to develop products and services that provide features and functionality similar to ours. Policing unauthorized use of our technology is difficult.",
"type": "body",
"path": "000:011:011:010",
"children": []
},
{
"index": 11,
"title": "",
"name": "Limited International Legal Protection for Proprietary Technology",
"content": "The laws of the countries in which we operate may offer little or no effective protection of our proprietary technology.",
"type": "body",
"path": "000:011:011:011",
"children": []
},
{
"index": 12,
"title": "",
"name": "Potential Competitor Developments and Limitations of IP Rights",
"content": "Our competitors could also independently develop services equivalent to ours, and our IP rights may not be broad enough for us to prevent competitors from utilizing their developments to compete with us.",
"type": "body",
"path": "000:011:011:012",
"children": []
},
{
"index": 13,
"title": "",
"name": "Risks of Reverse Engineering, Unauthorized Copying, and Misappropriation of Proprietary Technology",
"content": "Reverse engineering, unauthorized copying or other misappropriation of our proprietary technology could enable third parties to benefit from our technology without paying us for it, which would significantly harm our business.",
"type": "body",
"path": "000:011:011:013",
"children": []
},
{
"index": 14,
"title": "",
"name": "Frequent Claims and Litigation in the Industry Regarding Patent and IP Rights",
"content": "Our industry is characterized by frequent claims and related litigation regarding patent and other IP rights.",
"type": "body",
"path": "000:011:011:014",
"children": []
},
{
"index": 15,
"title": "",
"name": "Third-Party IP Claims Against Company and Affiliates",
"content": "From time to time, third parties may assert patent, copyright, trademark and other IP rights against us, our channel partners or our customers.",
"type": "body",
"path": "000:011:011:015",
"children": []
},
{
"index": 16,
"title": "",
"name": "Increased Risk of IP Infringement Claims Due to Public Company Status and Market Exposure",
"content": "In addition, based on our greater visibility, expanding solutions footprint, and market exposure as a public company, we face a higher risk of being the subject of IP infringement claims.",
"type": "body",
"path": "000:011:011:016",
"children": []
},
{
"index": 17,
"title": "",
"name": "Example of Patent Litigation Settlements and Related Financial Impact in 2016",
"content": "For example, in 2016 we settled two patent-related litigation matters and recorded a one-time charge of $270.0 million related to aggregate legal settlements. See \u201cRisk Factors\u2014Lawsuits against us by third parties that allege we infringe their intellectual property rights could harm our business and operating results\u201d for additional information.",
"type": "body",
"path": "000:011:011:017",
"children": []
}
]
},
{
"index": 12,
"title": "Employees",
"name": "",
"content": "",
"type": "container",
"path": "000:011:012",
"children": [
{
"index": 0,
"title": "",
"name": "Employee Statistics and Labor Union Representation as of December 31, 2019",
"content": "As of December 31, 2019, we had 10,371 full-time employees worldwide. None of our U.S. employees are represented by a labor union. Employees in certain European countries are represented by workers\u2019 councils and have the benefits of collective bargaining arrangements at the national level.We have not experienced interruptions of operations or work stoppages due to labor disagreements.",
"type": "body",
"path": "000:011:012:000",
"children": []
}
]
},
{
"index": 13,
"title": "Available Information",
"name": "",
"content": "",
"type": "container",
"path": "000:011:013",
"children": [
{
"index": 0,
"title": "",
"name": "Availability of SEC Filings and Reports on Company Website",
"content": "You can obtain copies of our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the SEC, and all amendments to these filings, free of charge from our website at www.servicenow.com\/company\/investor-relations\/sec-filings.html as soon as reasonably practicable following our filing of any of these reports with the SEC.",
"type": "body",
"path": "000:011:013:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Reference to SEC Internet Site for Electronic Filings and Reports",
"content": "The SEC maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC at www.sec.gov.",
"type": "body",
"path": "000:011:013:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Incorporation Disclaimer for Website Contents and URL References",
"content": "The contents of these websites are not incorporated into this filing and our references to the URLs for these websites are intended to be inactive textual references only.",
"type": "body",
"path": "000:011:013:002",
"children": []
}
]
}
]
},
{
"index": 12,
"title": "ITEM 1A. RISK FACTORS",
"name": "",
"content": "",
"type": "container",
"path": "000:012",
"children": [
{
"index": 0,
"title": "",
"name": "Risk Disclosure and Considerations for Investors",
"content": "Investing in our securities involves a high degree of risk. You should consider carefully the risks and uncertainties described below, together with all of the other information in this Annual Report on Form 10-K, including our consolidated financial statements and related notes, before making an investment decision.",
"type": "body",
"path": "000:012:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Identification of Material Risks and Potential Adverse Effects on Business Operations",
"content": "We have identified the following risks and uncertainties that may have a material adverse effect on our business, financial condition, results of operations and future prospects. Our business could be harmed by any of these risks.",
"type": "body",
"path": "000:012:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Potential Decline in Stock Price and Investment Loss Due to Identified Risks",
"content": "Our stock price could decline due to any of these risks, and you may lose all or part of your investment.",
"type": "body",
"path": "000:012:002",
"children": []
},
{
"index": 3,
"title": "Risks Related to Our Ability to Grow Our Business",
"name": "",
"content": "",
"type": "container",
"path": "000:012:003",
"children": [
{
"index": 0,
"title": "",
"name": "Competitive Market Participation and Impact on Business Performance",
"content": "We participate in intensely competitive markets, and if we do not compete effectively, our business and operating results will be harmed.",
"type": "container",
"path": "000:012:003:000",
"children": [
{
"index": 0,
"title": "",
"name": "Competitive Landscape and Market Entry Barriers for Enterprise Cloud Solutions",
"content": "The markets for our enterprise cloud solutions are rapidly evolving and highly competitive, with relatively low barriers to entry.",
"type": "body",
"path": "000:012:003:000:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Expected Intensification of Competition in the Maturing Digital Workflow Products Market",
"content": "As the market for digital workflow products matures and new technologies and competitors enter the market, we expect competition to intensify.",
"type": "body",
"path": "000:012:003:000:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "List of Current Competitors in the Digital Workflow Market",
"content": "Our current competitors include:\n- large, well-established, enterprise application software vendors and large integrated systems vendors;\n- new entrants to the market developing technologies to solve similar problems in different ways;\n- solutions developed in-house by our potential customers or using integrations with other tools;\n- vendors of infrastructure-as-a-service, platform-as-a-service and development operations; and\n- established and emerging cloud vendors.",
"type": "container",
"path": "000:012:003:000:002",
"children": [
{
"index": 0,
"title": "",
"name": "Customer Reluctance Due to Existing Enterprise Software Investments",
"content": "Many prospective customers have invested substantial personnel and financial resources to implement and integrate their current enterprise software into their businesses and therefore may be reluctant or unwilling to migrate away from their current solution to ours.",
"type": "body",
"path": "000:012:003:000:002:000",
"children": []
}
]
},
{
"index": 3,
"title": "",
"name": "Competitive Disadvantage Due to Competitors' Larger Size, Name Recognition, and Resources",
"content": "Many of our competitors and potential competitors are larger and have greater name recognition, longer operating histories, more established customer relationships (including at the executive level of large enterprises where decision-making authority is held), larger marketing budgets and greater resources than we do.",
"type": "body",
"path": "000:012:003:000:003",
"children": []
},
{
"index": 4,
"title": "",
"name": "Competitive Threats and Market Responses by Established Competitors",
"content": "While we believe that our platform and products can largely be complementary to large and established systems that traditionally operate as \u201csystems of record,\u201d competitors may try to enter our space. They may be able to respond more quickly and effectively than we can to new or changing opportunities, technologies, standards, customer requirements and buying practices. They may utilize acquisitions, integrations or consolidations to offer integrated or bundled products, enhanced functionality or other advantages. They may reduce the price of products or subscriptions that compete with ours or may bundle them with other products and subscriptions, causing our products to appear relatively more expensive. They may also invest in industry-specific solutions that purport to provide a unique solution for that industry.",
"type": "body",
"path": "000:012:003:000:004",
"children": []
},
{
"index": 5,
"title": "",
"name": "Expanding Competition from Adjacent Markets and New Service Offerings",
"content": "Other potential competitors not currently offering competitive products may expand their services to compete with our services, or we may shift our products and services to compete with current and future competitors in adjacent markets. We have in the past expanded, and we expect to continue to expand the breadth of our services to include offerings in new markets and the use of our platform by developers of custom applications. As a result, we expect increasing competition from platform vendors and application development vendors focused on these other markets.",
"type": "body",
"path": "000:012:003:000:005",
"children": []
},
{
"index": 6,
"title": "",
"name": "Impact of Smaller Competitors and New Entrants on Pricing Pressure in ITSM Market",
"content": "Smaller competitors and new entrants may accelerate pricing pressures, including in the ITSM market, which is our more mature offering and from which we derive a large portion of our revenues.",
"type": "body",
"path": "000:012:003:000:006",
"children": []
},
{
"index": 7,
"title": "",
"name": "Potential Competitive Disadvantages and Business Impact Risks",
"content": "For all of these reasons, we may not be able to compete successfully, and competition could result in reduced sales, reduced margins, losses or the failure of our products to achieve or maintain market acceptance, any of which could harm our business.",
"type": "body",
"path": "000:012:003:000:007",
"children": []
},
{
"index": 8,
"title": "",
"name": "Impact of Privacy Laws, Cloud Computing Regulations, and Data Transfer Restrictions on Business",
"content": "Privacy laws and concerns, evolving regulation of cloud computing, cross-border data transfer restrictions, other foreign and domestic regulations and standards related to data and the Internet may adversely affect our business.",
"type": "body",
"path": "000:012:003:000:008",
"children": []
}
]
},
{
"index": 1,
"title": "",
"name": "Government Regulations Impacting Data Privacy, Internet Usage, AI, and Data Sovereignty for Cloud Services",
"content": "National and local governments or agencies have in the past adopted, and may in the future adopt, laws and regulations affecting data privacy, the use of the Internet as a commercial medium, the use of data in contexts referred to as artificial intelligence and machine learning, and data sovereignty requirements concerning the location of data centers that store and process data. As a cloud based service provider, we optimize performance of our products and services by utilizing data centers that may be located in different political jurisdictions.",
"type": "container",
"path": "000:012:003:001",
"children": [
{
"index": 0,
"title": "",
"name": "Utilization of Product Usage Data for Continuous Improvement",
"content": "In addition, we utilize data concerning the use of our products and services to continually improve our offering.",
"type": "body",
"path": "000:012:003:001:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Impact of Evolving Data Privacy Laws on Service Development and Deployment",
"content": "Changing laws, regulations and standards applying to the collection, transfer, processing, storage or use of data, including personal data, could affect our ability to develop our products and services to maximize their utility, as well as our customers\u2019 ability to use and share data, potentially restricting our ability to store, process and share data with our customers in connection with providing our services. In some cases, this could impact our ability to offer our services in certain locations or our customers\u2019 ability to deploy our services globally.",
"type": "body",
"path": "000:012:003:001:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Examples of Recent Regulatory Changes Affecting Data Handling",
"content": "Examples of recent changes include:",
"type": "body",
"path": "000:012:003:001:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "Introduction of GDPR and Interpretation Variability",
"content": "- In 2016, the European Union (the EU) adopted the General Data Protection Regulation (the GDPR), which took effect in May 2018 and established new requirements applicable to the handling of personal data. The particular obligations imposed by GDPR are subject to interpretation, and different regulators may interpret requirements inconsistently.",
"type": "container",
"path": "000:012:003:001:003",
"children": [
{
"index": 0,
"title": "",
"name": "EU Proposed e-Privacy Regulation and Right to be Forgotten Requirements",
"content": "Further, laws such as the EU\u2019s proposed e-Privacy Regulation are increasingly aimed at the use of personal information , the tracking of individuals\u2019 online activities and the \u201cright to be forgotten,\u201d requiring a company to delete certain information about individuals upon their request in certain circumstances.",
"type": "body",
"path": "000:012:003:001:003:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Impact of Brexit on Compliance with EU and UK Privacy Regulations and Customer Uncertainty",
"content": "- In January 2020, Britain exited the EU (Brexit). Although we do not believe Brexit will require us to alter our operations in any material way to comply with privacy regulations in the EU and the United Kingdom (the UK), Brexit has and may continue to cause uncertainty for our customers.",
"type": "body",
"path": "000:012:003:001:003:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "European Court of Justice Ruling on Privacy Shield and Standard Contractual Clauses Impact on Data Transfer",
"content": "- In early 2020, the European Court of Justice is expected to give its ruling on a case regarding the validity of the Privacy Shield framework and the Standard Contractual Clauses (the SCCs), which are lawful transfer mechanisms for transferring personal data from the EU to the US (under the Privacy Shield framework) and other third countries deemed to have inadequate protection by the European Commission (under the SCCs). While we do not believe there will be any material impact to our business if the Privacy Shield is invalidated, there may be an impact to our ability to process personal data in certain jurisdictions where we operate if the SCCs are invalidated by the European Court of Justice.",
"type": "body",
"path": "000:012:003:001:003:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "Implementation and Impact of the California Consumer Privacy Act (CCPA) in January 2020",
"content": "- In January 2020, the California Consumer Privacy Act (the CCPA) in the US took effect and broadly defines personal information and provides California consumers increased privacy rights and protections. The CCPA, among other things, affords California consumers new abilities to opt out of certain sales of personal information. Legislators have amended the CCPA since it passed in 2018 and implementing regulations are yet to be finalized by the California Attorney General.",
"type": "body",
"path": "000:012:003:001:003:003",
"children": []
}
]
},
{
"index": 4,
"title": "",
"name": "Potential Future Legislation on Data Privacy and Localization by Various Jurisdictions",
"content": "In addition, other nations and U.S. states and the federal government have discussed, are passing or may pass, future legislation similar to the GDPR and\/or the CCPA, or with other data localization or sovereignty requirements.",
"type": "container",
"path": "000:012:003:001:004",
"children": [
{
"index": 0,
"title": "",
"name": "Consideration of AI and Machine Learning Regulation by US and Non-US Governments",
"content": "- Both US and non-US governments are considering the use of artificial intelligence and machine learning in both consumer and business contexts and whether there is any need for regulation in these areas.",
"type": "body",
"path": "000:012:003:001:004:000",
"children": []
}
]
},
{
"index": 5,
"title": "",
"name": "Compliance Costs and Obligations Under Data Privacy and Transfer Regulations",
"content": "The costs of compliance with, and other obligations imposed by, the GDPR, the e-Privacy Regulation, the CCPA and other privacy, data residency and data transfer laws, regulations and standards may cause us to incur substantial operational costs or require us to modify our data handling practices and\/or policies, may limit the development, use and adoption of our services and reduce overall demand for our services.",
"type": "body",
"path": "000:012:003:001:005",
"children": []
},
{
"index": 6,
"title": "",
"name": "Potential Consequences of Non-Compliance with Data Privacy Regulations",
"content": "In addition, non-compliance could result in proceedings or investigations against us by regulatory authorities or others, lead to significant fines or reputational harm and may otherwise adversely impact our business, financial condition and operating results.",
"type": "body",
"path": "000:012:003:001:006",
"children": []
},
{
"index": 7,
"title": "",
"name": "Potential Fines for GDPR Non-Compliance and Regulatory Interpretations",
"content": "For example, the GDPR imposes significant new obligations and compliance with these obligations depends in part on how particular regulators interpret and apply them. If we fail to comply with the GDPR or if regulators assert that we have failed to comply with the GDPR, we may be subject to fines of up to 4% of our worldwide annual revenue.",
"type": "body",
"path": "000:012:003:001:007",
"children": []
},
{
"index": 8,
"title": "",
"name": "Impact of Product Changes on Compliance Requirements",
"content": "Changes in our developed or acquired products and how such products utilize data could alter or increase our compliance requirements.",
"type": "body",
"path": "000:012:003:001:008",
"children": []
},
{
"index": 9,
"title": "",
"name": "Impact of Increased Privacy Regulation Compliance Costs on Innovation and Product Demand",
"content": "As a result, the cost of compliance with and other obligations imposed by privacy regulations could increase and our innovation and business drivers in developing or acquiring new and emerging technologies and the demand for our products could be impacted.",
"type": "body",
"path": "000:012:003:001:009",
"children": []
},
{
"index": 10,
"title": "",
"name": "Additional Obligations from Self-Regulatory Standards by Privacy and Industry Groups",
"content": "In addition to government activity, privacy advocacy groups and other technology and industry groups have established or may establish various new or different self-regulatory standards that may place additional obligations on us.",
"type": "body",
"path": "000:012:003:001:010",
"children": []
},
{
"index": 11,
"title": "",
"name": "Customer Expectations for Voluntary Certifications and Third-Party Standards Compliance",
"content": "Our customers may expect us to meet voluntary certifications or adhere to other standards established by third parties. If we are unable to maintain these certifications or meet these standards, it could reduce demand for our products and adversely affect our business.",
"type": "body",
"path": "000:012:003:001:011",
"children": []
}
]
},
{
"index": 2,
"title": "",
"name": "Risk of Competitive Disadvantage Due to Rapid Technological and Market Changes",
"content": "If we do not accurately predict, prepare for, and respond promptly to rapidly evolving technological, market and customer developments, our competitive position and business prospects may be harmed. We compete in markets that continue to evolve rapidly.",
"type": "container",
"path": "000:012:003:002",
"children": [
{
"index": 0,
"title": "",
"name": "Acceleration of Innovation Driven by Digital Technology Adoption",
"content": "The pace of innovation will continue to accelerate as customers increasingly base their purchases on digital technologies and capabilities, including public and private cloud solutions and infrastructure, massively scalable databases, mobile, consumer product-like user experiences, social, collaboration, machine learning, artificial intelligence, Internet-connected devices, high-velocity robotic automation, security, cryptography, internal software development operations, and application and service awareness.",
"type": "body",
"path": "000:012:003:002:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Customer Decision-Making on Digital Technology Adoption",
"content": "Our customers and prospective customers must choose among competing imperatives to adopt digital technologies, or have been built on fully-digital, modern, dynamic IT technologies.",
"type": "body",
"path": "000:012:003:002:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Requirements for Competitive Effectiveness in Technology Market",
"content": "Accordingly, to compete effectively, we must:\n- identify and innovate in the right emerging technologies, knowing that we cannot make substantial investments in all of them;\n- accurately predict our customers\u2019 changing business needs, priorities and adoption practices, including their technology infrastructures and buying and budgetary practices;\n- invest in and continually optimize our own technology platform so that it continues to meet the very high performance expectations of our customers;\n- successfully deliver new, scalable platform and database technologies and products to meet these needs and priorities;\n- efficiently integrate with other technologies within our customers\u2019 digital environments;\n- expand our offerings into industries and to buyers who are not familiar with our offerings;\n- profitably market and sell products to companies and buyers in markets where our sales and marketing teams have less experience, including to companies built on fully-digital, modern, dynamic IT technologies that have not been strong buyers of ITSM and ITOM products; and\n- effectively deliver, either directly or through our partner ecosystem, the business process planning, IT systems architecture planning, and product implementation services that our customers require to be successful.",
"type": "body",
"path": "000:012:003:002:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "Potential Risks of Failing to Meet Key Business Requirements",
"content": "If we fail to meet any of these requirements, our competitive position, strategic relevance and business prospects may be harmed.",
"type": "body",
"path": "000:012:003:002:003",
"children": []
},
{
"index": 4,
"title": "",
"name": "Impact of Product Release Delays and Defects on Technology Adoption and Customer Satisfaction",
"content": "Delays in the release of, or actual or perceived defects in, new or updated products may slow the adoption of our most recent technologies, reduce our ability to efficiently provide our services, decrease customer satisfaction, and adversely impact sales of additional products to our customers.",
"type": "body",
"path": "000:012:003:002:004",
"children": []
},
{
"index": 5,
"title": "",
"name": "Necessity for Successful Release of New Products and Updates and Associated Risk Management",
"content": "We must successfully continue to release new products and updates to existing products. The success of any release depends on a number of factors, including our ability to manage the risks associated with quality or other defects or deficiencies, delays in the timing of releases or the adoption of releases by customers, and other complications that may arise during the early stages of introduction.",
"type": "body",
"path": "000:012:003:002:005",
"children": []
},
{
"index": 6,
"title": "",
"name": "Impact of Delayed or Defective Product Releases on Customer Adoption and Business Growth",
"content": "If releases are delayed or if customers perceive that our releases contain bugs or other defects or are difficult to implement, customer adoption of our new products or updates may be adversely impacted, customer satisfaction may decrease, our ability to efficiently provide our services may be reduced, and our growth prospects may be harmed.",
"type": "body",
"path": "000:012:003:002:006",
"children": []
}
]
},
{
"index": 3,
"title": "",
"name": "Risks Associated with Government and Heavily-Regulated Organizational Contracts",
"content": "We do business with federal, state and local governments and agencies, and heavily-regulated U.S. and foreign organizations; as a result, we face risks related to the procurement process, budget decisions driven by statutory and regulatory determinations, termination of contracts, and compliance with government contracting requirements.",
"type": "container",
"path": "000:012:003:003",
"children": [
{
"index": 0,
"title": "",
"name": "Provision of Products and Services to Government and Regulated Entities Directly and Through Partners",
"content": "We provide products and services to the U.S. government, state and local governments and heavily-regulated organizations directly and through our partners.",
"type": "body",
"path": "000:012:003:003:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Investments in Government Sector Sales and Cloud Security Certifications",
"content": "We have made, and may continue to make, significant investments to support future sales opportunities in the federal, state and local government sectors. This includes obtaining additional cloud security certification requirements for the ServiceNow GovCommunityCloud, such as the U.S. Federal Risk and Authorization Management Program (FedRAMP) High Impact Provisional Authority to Operate (P-ATO) from the Joint Authorization Board, and the U.S. Department of Defense Impact Level 4 P-ATO in the Security Requirements Guide for cloud computing by the Defense Information Systems Agency.",
"type": "body",
"path": "000:012:003:003:001",
"children": []
},
{
"index": 2,
"title": "",
"name": "Potential Changes and Challenges in Maintaining Government Certifications",
"content": "However, government certification requirements may change, or we may be unable to achieve or sustain one or more government certifications, including those mentioned above.",
"type": "body",
"path": "000:012:003:003:002",
"children": []
},
{
"index": 3,
"title": "",
"name": "Impact of Certification Requirements on Government Sector Sales",
"content": "As a result, our ability to sell into the government sector could be restricted until we obtain such certifications.",
"type": "body",
"path": "000:012:003:003:003",
"children": []
},
{
"index": 4,
"title": "",
"name": "Sales to Government Entities Primarily Through Distributors and Resellers",
"content": "A substantial majority of our sales to date to government entities have been made indirectly through our distribution and reseller partners.",
"type": "body",
"path": "000:012:003:003:004",
"children": []
},
{
"index": 5,
"title": "",
"name": "Risks and Challenges in Government Procurement Process",
"content": "Doing business with government entities presents a variety of risks. The procurement process for governments and their agencies is highly competitive, time-consuming and may, in certain circumstances, be subject to political influence.",
"type": "body",
"path": "000:012:003:003:005",
"children": []
},
{
"index": 6,
"title": "",
"name": "Significant Up-Front Costs and Compliance Risks in Government Contract Bidding",
"content": "We incur significant up-front time and expense, such as through engaging lobbyists, which subjects us to additional compliance risks and costs, without any assurance that we (or a third-party distributor or reseller) will win a contract.",
"type": "body",
"path": "000:012:003:003:006",
"children": []
},
{
"index": 7,
"title": "",
"name": "Impact of Public Sector Budgetary Cycles and Federal Government Shutdown on Product and Service Demand",
"content": "Beyond this, demand for our products and services may be adversely impacted by public sector budgetary cycles and funding availability that in any given fiscal cycle may be reduced or delayed, including in connection with an extended federal government shutdown.",
"type": "body",
"path": "000:012:003:003:007",
"children": []
},
{
"index": 8,
"title": "",
"name": "Potential Challenges to Bid Awards by Competitive Bidders",
"content": "Further, if we are or our partner is successful in receiving a bid award, that award could be challenged by one or more competitive bidders.",
"type": "body",
"path": "000:012:003:003:008",
"children": []
},
{
"index": 9,
"title": "",
"name": "Impact of Bid Protests on Contract Award Expenses and Outcomes",
"content": "Bid protests may result in an increase in expenses related to obtaining contract awards or an unfavorable modification or loss of an award.",
"type": "body",
"path": "000:012:003:003:009",
"children": []
},
{
"index": 10,
"title": "",
"name": "Impact of Unsuccessful Bid Protests on Project Initiation and Financial Results",
"content": "In the event a bid protest is unsuccessful, the resulting delay in the startup and funding of the work under these contracts may cause our actual results to differ materially and adversely from those anticipated.12Table of Contents",
"type": "body",
"path": "000:012:003:003:010",
"children": []
},
{
"index": 11,
"title": "",
"name": "Termination Rights of Public Sector Customers for Convenience or Default",
"content": "In addition, public sector customers may have contractual, statutory or regulatory rights to terminate current contracts with us or our third-party distributors or resellers for convenience or due to a default, though such risk may be assumed by such third-party distributor or reseller.",
"type": "body",
"path": "000:012:003:003:011",
"children": []
},
{
"index": 12,
"title": "",
"name": "Termination for Convenience \u2013 Fee Collection Limitations",
"content": "If a contract is terminated for convenience, we may only be able to collect fees for products or services delivered prior to termination and settlement expenses.",
"type": "body",
"path": "000:012:003:003:012",
"children": []
},
{
"index": 13,
"title": "",
"name": "Liability for Excess Costs and Business Restrictions Upon Contract Termination Due to Default",
"content": "If a contract is terminated due to a default, we may be liable for excess costs incurred by the customer for procuring alternative products or services or be precluded from doing further business with government entities.",
"type": "body",
"path": "000:012:003:003:013",
"children": []
},
{
"index": 14,
"title": "",
"name": "Compliance Requirements and Legal Obligations for Government Contracting Entities",
"content": "Further, entities providing services to governments are required to comply with a variety of complex laws, regulations, and contractual provisions relating to the formation, administration, or performance of government contracts that give public sector customers substantial rights and remedies, many of which are not typically found in commercial contracts. These may include rights with respect to price protection, the accuracy of information provided to the government, contractor compliance with supplier diversity policies, and other terms that are particular to government contracts, such as termination rights. These rules may apply to us and\/or third-party resellers or distributors whose practices we may not control. Such parties\u2019 non-compliance could impose repercussions with respect to contractual and customer satisfaction issues.",
"type": "body",
"path": "000:012:003:003:014",
"children": []
},
{
"index": 15,
"title": "",
"name": "Government Audits and Potential Penalties for Non-Compliance with Contractual Requirements",
"content": "In addition, federal, state, and local governments routinely investigate and audit contractors for compliance with these requirements. If, as a result of an audit, it is determined that we have failed to comply with these requirements, we may be subject to civil and criminal penalties and administrative sanctions, including termination of contracts, forfeiture of profits, cost associated with the triggering of price reduction clauses, fines, and suspensions or debarment from future government business, and we may suffer reputational harm.",
"type": "body",
"path": "000:012:003:003:015",
"children": []
}
]
},
{
"index": 4,
"title": "",
"name": "Expansion into Heavily Regulated Industries",
"content": "Further, we are increasingly doing business in heavily regulated industries, such as the financial services and health care industries.",
"type": "container",
"path": "000:012:003:004",
"children": [
{
"index": 0,
"title": "",
"name": "Regulatory Compliance Requirements for Customers in Heavily Regulated Industries",
"content": "Current and prospective customers, such as those in these industries, may be required to comply with more stringent regulations in connection with subscribing to and implementing our services or particular regulations regarding third-party vendors that may be interpreted differently by different customers.",
"type": "body",
"path": "000:012:003:004:000",
"children": []
},
{
"index": 1,
"title": "",
"name": "Regulatory Compliance Challenges for Third-Party Vendors and Our Company",
"content": "In addition, regulatory agencies may impose requirements toward third-party vendors generally, or our company in particular, that we may not be able to, or may not choose to, meet.",
"type": "body",
"path": "000:012:003:004:001",