ServiceNow, Inc.

Appendix B

Statement Regarding Use of Non-GAAP

Financial Measures

This Proxy Statement includes the following non-GAAP financial measures, which should be viewed as additions to, and

not substitutes for or superior to, financial measures calculated in accordance with GAAP.

•Income from operations. Our non-GAAP presentation of income from operations measure excludes certain non-cash

or non-recurring items, including stock-based compensation expense, amortization of purchased intangibles, legal

settlements, impairment of assets, severance costs, contract termination costs, and business combination and other

related costs including compensation expense.

•Free cash flow. Free cash flow is defined as net cash provided by operating activities plus cash outflows for legal

settlements and business combination and other related costs including compensation expense, reduced by purchases

of property and equipment.

•Free cash flow margin. Free cash flow margin is calculated as free cash flow as a percentage of total revenues.

Our presentation of non‑GAAP financial measures may not be comparable to similar measures used by other companies.

We encourage shareholders to carefully consider our GAAP results, as well as our supplemental non‑GAAP information

and the reconciliation between these presentations, to more fully understand our business. Please see the table below for

the reconciliation of GAAP and non‑GAAP results.

GAAP to Non-GAAP Reconciliation (in millions)

B-2

APPENDIX B

Numbers rounded for presentation purposes and may not foot.

We believe information regarding the non-GAAP income from operations, non-GAAP operating margin, free cash flow and

free cash flow margin is useful to investors because it is an indicator of the strength and performance of our

business operations.