ServiceNow vs Twilio

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KIRA’s take AI analyst

I put ServiceNow and Twilio side by side, using each one’s latest annual report. Here is what stands out:

ServiceNow is the larger business, with $13.3B of revenue in fiscal 2025 against $5.1B for Twilio, about 2.6 times as much.
ServiceNow grew revenue faster (20.9%, against 13.7%).
ServiceNow kept more of each dollar of sales as operating profit (13.7% operating margin, against 3.1%).
ServiceNow turned more of its sales into free cash flow (34.5% FCF margin, against 19.7%).
ServiceNow earned a higher return on the capital invested in it (20.9%, against 1.5%).
Investors pay more for each dollar of ServiceNow’s earnings: a P/E of 98.9x against 36.7x for Twilio.

Who comes out ahead

Of the 11 measures where higher (or lower) is clearly better, how many each company leads.

ServiceNow

NOW

8/11

Revenue growth5-year growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equity

Twilio

TWLO

2/11

Net debt / EBITDAShare count change

Side by side

Best in the row

Latest fiscal year	NOW FY25	TWLO FY25
Size
Market cap	$163.6B	$42.1B
Revenue	$13.3B	$5.1B
Free cash flow	$4.6B	$997M
Net income	$1.7B	$33.8M
Growth
Revenue growth	20.9%	13.7%
5-year growth	24.1%	23.5%
Share count change	0.4%	−3.7%
Profitability
Gross margin	77.5%	48.9%
Operating margin	13.7%	3.1%
Net margin	13.2%	0.7%
FCF margin	34.5%	19.7%
Return on capital	20.9%	1.5%
Return on equity	15.5%	0.4%
Balance sheet
Net debt	−$4.8B	−$1.5B
Net debt / EBITDA	−1.9x	−4.2x
Dividends and buybacks	$1.8B	$869M
Valuation & quality
P/E	98.9x	36.7x
Piotroski F-score	6	6

Ten years

Revenue

FY16

NOW $1.4B

TWLO $277M

FY17

NOW $1.9B

TWLO $399M

FY18

NOW $2.6B

TWLO $650M

FY19

NOW $3.5B

TWLO $1.1B

FY20

NOW $4.5B

TWLO $1.8B

FY21

NOW $5.9B

TWLO $2.8B

FY22

NOW $7.2B

TWLO $3.8B

FY23

NOW $9.0B

TWLO $4.2B

FY24

NOW $11.0B

TWLO $4.5B

FY25

NOW $13.3B

TWLO $5.1B

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

NOW TWLO

Operating margin

FY16

NOW −27.5%

TWLO −14.9%

FY17

NOW −3.3%

TWLO −16.6%

FY18

NOW −1.6%

TWLO −17.7%

FY19

NOW 1.2%

TWLO −32.6%

FY20

NOW 4.4%

TWLO −28.0%

FY21

NOW 4.4%

TWLO −32.2%

FY22

NOW 4.9%

TWLO −31.5%

FY23

NOW 8.5%

TWLO −21.1%

FY24

NOW 12.4%

TWLO −1.2%

FY25

NOW 13.7%

TWLO 3.1%

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

NOW TWLO

Free cash flow

FY16

NOW $53.5M

TWLO −$4.1M

FY17

NOW $492M

TWLO −$12.5M

FY18

NOW $587M

TWLO $2.9M

FY19

NOW $971M

TWLO −$31.3M

FY20

NOW $1.4B

TWLO $6.9M

FY21

NOW $1.8B

TWLO −$104M

FY22

NOW $2.2B

TWLO −$289M

FY23

NOW $2.7B

TWLO $403M

FY24

NOW $3.4B

TWLO $709M

FY25

NOW $4.6B

TWLO $997M

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

NOW TWLO

Return on capital

FY16

NOW −47.3%

TWLO —

FY17

NOW —

TWLO −112.6%

FY18

NOW —

TWLO −94.2%

FY19

NOW 6.0%

TWLO −19.3%

FY20

NOW 12.6%

TWLO −9.0%

FY21

NOW 14.2%

TWLO −11.6%

FY22

NOW 13.8%

TWLO −13.5%

FY23

NOW 23.5%

TWLO −9.8%

FY24

NOW 23.4%

TWLO −0.6%

FY25

NOW 20.9%

TWLO 1.5%

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

NOW TWLO

Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.