The reason is that GAAP accounting treats stock-based compensation (SBC) as a real expense. As a result, GAAP EPS came in at just $0.45, missing the market consensus of $0.53.
Let’s look at the math: at a share price of $85, the trailing GAAP P/E sits around 47x. Even with Google's P/E currently near 31x, ServiceNow is still trading at a massive premium despite significantly lower operational efficiency.
For a company of this size, half a dollar in net profit per share is essentially operating at break-even. The bulk of the profit is siphoned off by employees through bonuses, leaving shareholders with nothing but crumbs.
And GAAP EPS of $0.45 vs $0.44 … made up numbers?
The reason is that GAAP accounting treats stock-based compensation (SBC) as a real expense. As a result, GAAP EPS came in at just $0.45, missing the market consensus of $0.53.
Let’s look at the math: at a share price of $85, the trailing GAAP P/E sits around 47x. Even with Google's P/E currently near 31x, ServiceNow is still trading at a massive premium despite significantly lower operational efficiency.
For a company of this size, half a dollar in net profit per share is essentially operating at break-even. The bulk of the profit is siphoned off by employees through bonuses, leaving shareholders with nothing but crumbs.