But the second reason ServiceNow is being tossed aside is its small profit margins. Granted, on a free-cash-flow (FCF) basis, ServiceNow is highly profitable. Through the first nine months of 2022, FCF was $1.16 billion, a FCF profit margin of 22%. However, unadjusted net income was just $175 million, lowered by noncash expenses like depreciation and amortization of assets and employee stock-based compensation.