Revenue of $265 Million, up 5% Year-Over-Year,
up 8% in Constant Currency, Exceeds Guidance
GAAP Operating Margin of 6.8% and Non-GAAP
Operating Margin of 26.6%, Exceeds Guidance
GAAP Net Income Per Share of $0.08 and Non-GAAP
Net Income Per Share of $0.39, Exceeds Guidance
Cash From Operations of $131 Million, Up 5%
Year-Over-Year
Non-GAAP Free Cash Flow of $123 Million, Up 14%
Year-Over-Year
Box, Inc. (NYSE:BOX), the leading Content Cloud, today announced
preliminary financial results for the first quarter of fiscal year
2025, which ended April 30, 2024.
“With the power of AI, the role of unstructured data in
enterprises has exploded and the Box Intelligent Content Cloud is
in a prime position to help companies fully tap into the value of
their content,” said Aaron Levie, co-founder and CEO of Box. “As we
continue to execute on our innovative roadmap with the launch of
Box Hubs and Box AI for Hubs, we are addressing some of the most
significant challenges that our customers face in harnessing the
power of AI and content.”
“We are pleased to have delivered Q1 revenue growth of 5%
year-over-year, or 8% in constant currency. Continued focus on
operational discipline resulted in Q1 operating margin and EPS both
strongly above our guidance, record non-GAAP gross margin of 80%,
and free cash flow growth of 14% year-over-year,” said Dylan Smith,
co-founder and CFO of Box. “We remain focused on delivering revenue
growth while maintaining our commitment to continued cost savings
and driving operating margin expansion.”
Fiscal First Quarter Financial Highlights
- Revenue for the first quarter of fiscal 2025 was a record
$264.7 million, a 5% increase from revenue for the first quarter of
fiscal 2024 of $251.9 million, or 8% growth on a constant currency
basis.
- Remaining performance obligations (“RPO”) as of April 30, 2024
were $1.212 billion, a 3% increase from RPO as of April 30, 2023 of
$1.179 billion, or 8% growth on a constant currency basis.
- Billings for the first quarter of fiscal 2025 were $190.5
million, a 1% decrease from billings for the first quarter of
fiscal 2024 of $191.9 million, or 5% growth on a constant currency
basis.
- GAAP gross profit for the first quarter of fiscal 2025 was a
record $206.4 million, or 78.0% of revenue. This compares to a GAAP
gross profit of $190.2 million, or 75.5% of revenue, in the first
quarter of fiscal 2024.
- Non-GAAP gross profit for the first quarter of fiscal 2025 was
a record $212.2 million, or 80.2% of revenue. This compares to a
non-GAAP gross profit of $196.2 million, or 77.9% of revenue, in
the first quarter of fiscal 2024.
- GAAP operating income in the first quarter of fiscal 2025 was a
record $18.0 million, or 6.8% of revenue. This compares to a GAAP
operating income of $8.3 million, or 3.3% of revenue, in the first
quarter of fiscal 2024.
- Non-GAAP operating income in the first quarter of fiscal 2025
was a record $70.4 million, or 26.6% of revenue. This compares to a
non-GAAP operating income of $57.4 million, or 22.8% of revenue, in
the first quarter of fiscal 2024.
- GAAP diluted net income per share attributable to common
stockholders in the first quarter of fiscal 2025 was $0.08 on 148.8
million weighted-average shares outstanding. This compares to GAAP
diluted net income per share attributable to common stockholders of
$0.02 in the first quarter of fiscal 2024 on 150.4 million
weighted-average shares outstanding. GAAP net income per share
attributable to common stockholders in the first quarter of fiscal
2025 includes a negative impact of $0.04 year-over-year from
unfavorable foreign exchange rates.
- Non-GAAP diluted net income per share attributable to common
stockholders in the first quarter of fiscal 2025 was $0.39. This
compares to non-GAAP diluted net income per share attributable to
common stockholders of $0.32 in the first quarter of fiscal 2024.
Non-GAAP net income per share attributable to common stockholders
in the first quarter of fiscal 2025 includes a negative impact of
$0.04 year-over-year from unfavorable foreign exchange rates.
- Net cash provided by operating activities in the first quarter
of fiscal 2025 was a record $131.2 million, a 5% increase from net
cash provided by operating activities of $124.9 million in the
first quarter of fiscal 2024.
- Non-GAAP free cash flow in the first quarter of fiscal 2025 was
a record $123.2 million, a 14% increase from non-GAAP free cash
flow of $108.2 million in the first quarter of fiscal 2024.
Growth on a constant currency basis and impact from foreign
exchange is determined by comparing current period reported results
with the current results calculated using the equivalent rates in
the prior period.
For more information on the non-GAAP financial measures and key
metrics discussed in this press release, please see the section
titled, “About Non-GAAP Financial Measures and Other Key Metrics,”
and the reconciliations of non-GAAP financial measures and certain
key metrics to their nearest comparable GAAP financial measures at
the end of this press release.
Recent Business Highlights
- Delivered wins or expansions with leading organizations across
a variety of industries and geographies, including Alcon Vision and
Alnylam Pharmaceuticals (Life Sciences); Axiom Space (Aerospace);
Clyde & Co (Professional Services); ABN AMRO Bank N.V.,
EverBank and Pan-American Service Company (Financial Services);
Idaho National Laboratory and U.S. Army Civilian Human Resources
Agency (Public Sector); JTB Corp. (Hospitality); Seiko Group
Corporation (Manufacturing); and Skydance Media (Media and
Entertainment).
- Announced the Box Hubs public beta — a new way to surface
trusted content to users faster. Box Hubs is a new intelligent
portal solution that makes content curation and publishing simple,
no matter the file type or folder.
- Introduced Box AI for Hubs in public beta. With Box AI built
right into enterprise portals, teams can unlock the value stored
across vast amounts of enterprise data. Hubs users can get answers
to critical questions across multiple, curated documents;
automatically summarize vast amounts of information; compare
specific files; and create new content based on Hub content.
- Announced a collaboration between NVIDIA NIM and Box AI to help
provide businesses with a reliable and flexible platform for
supercharging production AI.
- Announced Box for Oracle NetSuite v3 which now includes the
ability to send signature requests directly within the NetSuite UI.
The NetSuite integration embeds Box directly into NetSuite
records.
- Hosted the Box Content Cloud Summit, where Box executives and
customers from leading organizations discussed the latest Box
innovations, including Box AI, Hubs, and Sign.
- Recognized by Great Place to Work® and Fortune® magazine as one
of the 100 Best Companies to Work For. Box earned the #18 spot on
the list for 2024.
- Announced the appointment of Steve Murphy, CEO of Epicor
Software, to the Board of Directors. Murphy was selected to serve
on Box’s Board of Directors because of his extensive career in the
software industry, track record of operational excellence in
leadership roles, and expertise in the content management
market.
Outlook
As a reminder, approximately one third of Box’s revenue is
generated outside of the U.S., of which approximately 60% is in
Japanese Yen. The following guidance includes the expected impact
of FX headwinds, assuming present foreign currency exchange rates.
Due to the strengthening of the U.S. dollar versus the Yen since we
last provided guidance, we now expect FX to be a 250 basis point
headwind to full fiscal year 2025 revenue growth, 80 basis points
higher than our previous expectations. For full fiscal year 2025
GAAP and non-GAAP operating margin, we now expect FX to be a
headwind of 160 basis points, nearly 50 basis points higher than
our previous expectations.
Additionally, as we have become consistently profitable in our
international business, in the fourth quarter of fiscal year 2024
we released the valuation allowance against our deferred tax assets
in the United Kingdom. Accordingly, in fiscal year 2025 we are
recognizing deferred tax expense in the United Kingdom. This
non-cash expense is reflected in our GAAP and non-GAAP diluted net
income per share guidance for the second quarter of fiscal year
2025 and full fiscal year 2025.
Q2 FY25 Guidance
- Revenue is expected to be in the range of $268 million to $270
million, up 3% year-over-year at the high-end of the range, or 6%
growth on a constant currency basis.
- GAAP operating margin is expected to be approximately 6.0%, and
non-GAAP operating margin is expected to be approximately 27%.
- GAAP net income per share attributable to common stockholders
is expected to be in the range of $0.06 to $0.07. GAAP EPS guidance
includes an expected negative impact of $0.04 from unfavorable
exchange rates and $0.01 from the recognition of deferred tax
expenses in international countries.
- Non-GAAP diluted net income per share attributable to common
stockholders is expected to be in the range of $0.40 to $0.41.
Non-GAAP EPS guidance includes an expected negative impact of $0.04
from unfavorable exchange rates and $0.01 from the recognition of
deferred tax expenses in international countries.
- Weighted-average diluted shares outstanding are expected to be
approximately 148 million.
Full Year FY25 Guidance
- Revenue is expected to be in the range of $1.075 billion to
$1.08 billion, up 4% year-over-year at the high-end of the range,
or 7% growth on a constant currency basis. On a constant currency
basis, this represents a $3 million increase from our previous
guidance.
- GAAP operating margin is expected to be approximately 6.5%, and
non-GAAP operating margin is expected to be approximately 27%.
- GAAP net income per share attributable to common stockholders
is expected to be in the range of $0.20 to $0.24. FY25 GAAP EPS
guidance includes an expected negative impact of $0.15 from
unfavorable exchange rates and $0.05 from the recognition of
deferred tax expenses in international countries.
- Non-GAAP diluted net income per share attributable to common
stockholders is expected to be in the range of $1.54 to $1.58. FY25
non-GAAP EPS guidance includes an expected negative impact of $0.15
from unfavorable exchange rates and $0.05 from the recognition of
deferred tax expenses in international countries.
- Weighted-average diluted shares outstanding are expected to be
approximately 150 million.
All forward-looking non-GAAP financial measures contained in
this section titled “Outlook” exclude estimates for stock-based
compensation expense, intangible assets amortization, and as
applicable, other special items. Box has provided a reconciliation
of GAAP to non-GAAP net income per share and operating margin
guidance at the end of this press release.
Webcast and Conference Call Information
Box’s management team will host a conference call today
beginning at 2:00 PM (PT) / 5:00 PM (ET) to discuss Box’s financial
results, business highlights and future outlook. A live audio
webcast of this call will be available through Box’s Investor
Relations website at https://www.boxinvestorrelations.com for a
period of 90 days after the date of the call. Prepared remarks will
be available on the Box Investor Relations website after the call
ends.
The conference call can be accessed by registering online at
https://events.q4inc.com/attendee/868960574 at which time
registrants will receive dial-in information as well as a
conference ID. A telephonic replay of the call will be available
approximately two hours after the call and will run for one week.
The replay can be accessed by dialing:
+ 1-800-770-2030 (toll-free), conference ID: 23531
+1-609-800-9909 (U.S. toll), conference ID: 23531 + 1-647-362-9199
(Canada toll), conference ID: 23531
Box has used, and intends to continue to use, its Investor
Relations website (www.box.com/investors), as well as certain X
accounts (@box, @levie and @boxincir), as a means of disclosing
material non-public information and for complying with its
disclosure obligations under Regulation FD. Information on or that
can be accessed through Box’s Investor Relations website, these X
accounts, or that is contained in any website to which a hyperlink
is provided herein is not part of this press release, and the
inclusion of Box’s Investor Relations website address, these X
accounts, and any hyperlinks are only inactive textual
references.
This press release, the financial tables, as well as other
supplemental information including the reconciliations of non-GAAP
financial measures and certain key metrics to their nearest
comparable GAAP financial measures, are also available on Box’s
Investor Relations website. Box also provides investor information,
including news and commentary about Box’s business and financial
performance, Box’s filings with the Securities and Exchange
Commission, notices of investor events and Box’s press and earnings
releases, on Box’s Investor Relations website.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks, uncertainties, and assumptions, including statements
regarding Box’s expectations regarding its growth and
profitability, the size of its market opportunity, its investments
in go-to-market programs, the demand for its products, the
potential of AI and its impact on Box, the timing of recent and
planned product introductions, enhancements and integrations, the
short- and long-term success, market adoption and retention,
capabilities, and benefits of such product introductions and
enhancements, the success of strategic partnerships, the impact of
macroeconomic conditions on its business, its ability to grow and
scale its business and drive operating efficiencies, the impact of
fluctuations in foreign currency exchange rates on its future
results, its net retention rate, its ability to achieve revenue
targets and billings expectations, its revenue and billings growth
rates, its ability to expand operating margins, its revenue growth
rate plus free cash flow margin in fiscal year 2025 and beyond, its
long-term financial targets, its ability to maintain profitability
on a quarterly or ongoing basis, its free cash flow, its ability to
continue to grow unrecognized revenue and remaining performance
obligations, its revenue, billings, GAAP and non-GAAP gross margin,
GAAP and non-GAAP net income per share, GAAP and non-GAAP operating
margins, the related components of GAAP and non-GAAP net income per
share, weighted-average outstanding share count expectations for
Box’s fiscal second quarter and full fiscal year 2025 in the
section titled “Outlook” above, equity burn rate, any potential
repurchase of its common stock, whether, when, in what amount and
by what method any such repurchase would be consummated, and the
share price of any such repurchase. There are a significant number
of factors that could cause actual results to differ materially
from statements made in this press release, including: (1) adverse
changes in general economic or market conditions, including those
caused by the Hamas-Israel and Russia-Ukraine conflicts, inflation,
and fluctuations in foreign currency exchange rates; (2) delays or
reductions in information technology spending; (3) factors related
to Box’s highly competitive market, including but not limited to
pricing pressures, industry consolidation, entry of new competitors
and new applications and marketing initiatives by Box’s current or
future competitors; (4) the development of the cloud content
management market; (5) the risk that Box’s customers do not renew
their subscriptions, expand their use of Box’s services, or adopt
new products offered by Box on a timely basis, or at all; (6) Box’s
ability to provide timely and successful enhancements,
integrations, new features and modifications to its platform and
services; (7) actual or perceived security vulnerabilities in Box’s
services or any breaches of Box’s security controls; (8) Box’s
ability to realize the expected benefits of its third-party
partnerships; and (9) Box’s ability to successfully integrate
acquired businesses and achieve the expected benefits from those
acquisitions. In addition, the preliminary financial results set
forth in this release are estimates based on information currently
available to Box. While Box believes these estimates are
meaningful, they could differ from the actual amounts that Box
ultimately reports in its Quarterly Report on Form 10-Q for the
fiscal quarter ended April 30, 2024. Box assumes no obligations and
does not intend to update these estimates prior to filing its Form
10-Q for the fiscal quarter ended April 30, 2024.
Additional information on potential factors that could affect
Box’s financial results is included in the reports on Forms 10-K,
10-Q and 8-K and in other filings Box makes with the Securities and
Exchange Commission from time to time, including the Annual Report
on Form 10-K filed for the fiscal year ended January 31, 2024.
These documents are available on the SEC Filings section of Box’s
Investor Relations website located at www.boxinvestorrelations.com.
Box does not assume any obligation to update the forward-looking
statements contained in this press release to reflect events that
occur or circumstances that exist after the date on which they were
made.
About Non-GAAP Financial Measures and Other Key
Metrics
To supplement Box’s consolidated financial statements, which are
prepared and presented in accordance with GAAP, Box provides
investors with certain non-GAAP financial measures and other key
metrics, including non-GAAP gross profit, non-GAAP gross margin,
non-GAAP operating income, non-GAAP operating margin, non-GAAP net
income attributable to common stockholders, non-GAAP net income per
share attributable to common stockholders, billings, remaining
performance obligations, non-GAAP free cash flow and free cash flow
margin. The presentation of these non-GAAP financial measures and
key metrics is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared
and presented in accordance with GAAP. For more information on
these non-GAAP financial measures and key metrics, please see the
reconciliation of these non-GAAP financial measures and certain key
metrics to their nearest comparable GAAP financial measures at the
end of this press release.
Box uses these non-GAAP financial measures and key metrics for
financial and operational decision-making (including for purposes
of determining variable compensation of members of management and
other employees) and as a means to evaluate period-to-period
comparisons. Box’s management believes that these non-GAAP
financial measures and key metrics provide meaningful supplemental
information regarding Box’s performance by excluding certain
expenses that may not be indicative of Box’s recurring core
business operating results. Box believes that both management and
investors benefit from referring to these non-GAAP financial
measures and key metrics in assessing Box’s performance and when
planning, forecasting, and analyzing future periods. These non-GAAP
financial measures and key metrics also facilitate management's
internal comparisons to Box’s historical performance as well as
comparisons to Box’s competitors' operating results. Box believes
these non-GAAP financial measures and key metrics are useful to
investors both because they (1) allow for greater transparency with
respect to key metrics used by management in its financial and
operational decision-making and (2) are used by Box’s institutional
investors and the analyst community to help them analyze the health
of Box’s business.
A limitation of non-GAAP financial measures and key metrics is
that they do not have uniform definitions. Further, Box’s
definitions will likely differ from the definitions used by other
companies, including peer companies, and therefore comparability
may be limited. Thus, Box’s non-GAAP financial measures and key
metrics should be considered in addition to, and not as a
substitute for, or in isolation from, measures prepared in
accordance with GAAP. Additionally, in the case of stock-based
compensation expense, if Box did not pay a portion of compensation
in the form of stock-based compensation expense, the cash salary
expense included in cost of revenue and operating expenses would be
higher, which would affect Box’s cash position. The accompanying
tables have more details on the reconciliations of non-GAAP
financial measures and certain key metrics to their nearest
comparable GAAP financial measures.
Non-GAAP gross profit and non-GAAP gross margin. Box defines
non-GAAP gross profit as GAAP gross profit excluding expenses
related to stock-based compensation (“SBC”) included in cost of
revenue, intangible assets amortization, and as applicable, other
special items. Non-GAAP gross margin is defined as non-GAAP gross
profit divided by revenue. Although SBC is an important aspect of
the compensation of Box’s employees and executives, determining the
fair value of certain of the stock-based instruments Box utilizes
estimation and the expense recorded may bear little resemblance to
the actual value realized upon the vesting or future exercise of
the related stock-based awards. Management believes it is useful to
exclude SBC in order to better understand the long-term performance
of Box’s core business and to facilitate comparison of Box’s
results to those of peer companies. Management also views
amortization of acquired intangible assets, such as the
amortization of the cost associated with an acquired company’s
developed technology and trade names, as items arising from
pre-acquisition activities determined at the time of an
acquisition. While these intangible assets are continually
evaluated for impairment, amortization of the cost of purchased
intangibles is a static expense that is not typically affected by
operations during any particular period. Box also excludes expenses
associated with a non-recurring workforce reorganization from
non-GAAP gross profit as they are considered by management to be
special items outside of Box’s core operating results.
Non-GAAP operating income and non-GAAP operating margin. Box
defines non-GAAP operating income as operating income excluding
expenses related to SBC, intangible assets amortization, and as
applicable, other special items. Non-GAAP operating margin is
defined as non-GAAP operating income divided by revenue. Box
excludes the following expenses as they are considered by
management to be special items outside of Box’s core operating
results: (1) fees related to shareholder activism (2) expenses
related to certain litigation, (3) expenses associated with a
non-recurring workforce reorganization, consisting primarily of
severance and other personnel-related costs, and (4) expenses
related to acquisitions.
Non-GAAP net income attributable to common stockholders and
non-GAAP net income per share attributable to common stockholders.
Box defines non-GAAP net income attributable to common stockholders
as GAAP net income attributable to common stockholders excluding
expenses related to SBC, intangible assets amortization,
amortization of debt issuance costs, the income tax benefit from
the release of a valuation allowance on deferred tax assets,
undistributed earnings attributable to preferred stockholders, and
as applicable, other special items as described in the preceding
paragraph. Box defines non-GAAP net income per share attributable
to common stockholders as non-GAAP net income attributable to
common stockholders divided by the weighted-average outstanding
shares.
Billings. Billings reflect, in any particular period, (1) sales
to new customers, plus (2) subscription renewals and (3) expansion
within existing customers, and represent amounts invoiced for all
products and professional services. Box calculates billings for a
period by adding changes in deferred revenue and contract assets in
that period to revenue. Box believes that billings help investors
better understand sales activity for a particular period, which is
not necessarily reflected in revenue as a result of the fact that
Box recognizes subscription revenue ratably over the subscription
term. Box considers billings a significant performance measure. Box
monitors billings to manage the business, make planning decisions,
evaluate performance and allocate resources. Box believes that
billings offers valuable supplemental information regarding the
performance of the business and helps investors better understand
the sales volumes and performance of the business. Although Box
considers billings to be a significant performance measure, Box
does not consider it to be a non-GAAP financial measure because it
is calculated using exclusively revenue, deferred revenue, and
contract assets, all of which are financial measures calculated in
accordance with GAAP.
Remaining performance obligations. Remaining performance
obligations (“RPO”) represent, at a point in time, contracted
revenue that has not yet been recognized. RPO consists of deferred
revenue and backlog. Backlog is defined as non-cancellable
contracts deemed certain to be invoiced and recognized as revenue
in future periods. Future invoicing is determined to be certain
when we have an executed non-cancellable contract or a significant
penalty that is due upon cancellation. While Box believes RPO is a
leading indicator of revenue as it represents sales activity not
yet recognized in revenue, it is not necessarily indicative of
future revenue growth as it is influenced by several factors,
including seasonality, contract renewal timing, average contract
terms and foreign currency exchange rates. Box monitors RPO to
manage the business and evaluate performance. Box considers RPO to
be a significant performance measure. Box does not consider RPO to
be a non-GAAP financial measure because it is calculated in
accordance with GAAP, specifically under ASC Topic 606.
Non-GAAP free cash flow and free cash flow margin. Box defines
non-GAAP free cash flow as cash flows from operating activities
less purchases of property and equipment, principal payments of
finance lease liabilities, capitalized internal-use software costs,
and other items that did not or are not expected to require cash
settlement and that management considers to be outside of Box’s
core business. Free cash flow margin is calculated as non-GAAP free
cash flow divided by revenue. Box specifically identifies adjusting
items in the reconciliation of GAAP to non-GAAP financial measures.
Box considers non-GAAP free cash flow to be a profitability and
liquidity measure that provides useful information to management
and investors about the amount of cash generated by the business
that can possibly be used for investing in Box's business and
strengthening its balance sheet, but it is not intended to
represent the residual cash flow available for discretionary
expenditures. The presentation of non-GAAP free cash flow is also
not meant to be considered in isolation or as an alternative to
cash flows from operating activities as a measure of liquidity.
About Box
Box (NYSE:BOX) is the leading Content Cloud, a single platform
that enables organizations to fuel collaboration, manage the entire
content lifecycle, secure critical content, and transform business
workflows with enterprise AI. Founded in 2005, Box simplifies work
for leading global organizations, including AstraZeneca, JLL,
Morgan Stanley, and Nationwide. Box is headquartered in Redwood
City, CA, with offices across the United States, Europe, and Asia.
Visit box.com to learn more. And visit box.org to learn more about
how Box empowers nonprofits to fulfill their missions.
BOX, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In Thousands)
(Unaudited)
April 30,
January 31,
2024
2024
ASSETS
Current assets:
Cash and cash equivalents
$
449,507
$
383,742
Short-term investments
116,616
96,948
Accounts receivable, net
143,053
281,487
Deferred commissions
43,922
45,817
Other current assets
35,575
34,186
Total current assets
788,673
842,180
Operating lease right-of-use assets,
net
92,762
99,354
Goodwill
76,416
76,750
Deferred commissions, non-current
59,426
63,541
Deferred tax assets
72,161
75,665
Other long-term assets
86,659
83,673
Total assets
$
1,176,097
$
1,241,163
LIABILITIES, CONVERTIBLE PREFERRED
STOCK AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable, accrued expenses and
other current liabilities
$
51,316
$
52,737
Accrued compensation and benefits
21,590
36,872
Operating lease liabilities
25,529
26,812
Deferred revenue
493,003
562,859
Total current liabilities
591,438
679,280
Debt, net, non-current
371,323
370,822
Operating lease liabilities,
non-current
88,318
94,165
Other long-term liabilities
30,307
35,863
Total liabilities
1,081,386
1,180,130
Series A convertible preferred stock
492,585
492,095
Stockholders’ deficit:
Common stock
15
14
Additional paid-in capital
803,449
785,374
Accumulated other comprehensive loss
(11,796
)
(9,686
)
Accumulated deficit
(1,189,542
)
(1,206,764
)
Total stockholders’ deficit
(397,874
)
(431,062
)
Total liabilities, convertible preferred
stock and stockholders’ deficit
$
1,176,097
$
1,241,163
BOX, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In Thousands, Except Per
Share Data)
(Unaudited)
Three Months Ended
April 30,
2024
2023
Revenue
$
264,658
$
251,898
Cost of revenue (1)
58,252
61,651
Gross profit
206,406
190,247
Operating expenses:
Research and development (1)
62,673
62,518
Sales and marketing (1)
92,673
86,210
General and administrative (1)
33,053
33,184
Total operating expenses
188,399
181,912
Income from operations
18,007
8,335
Interest and other income, net
3,858
2,318
Income before provision for income
taxes
21,865
10,653
Provision for income taxes
4,643
2,303
Net income
$
17,222
$
8,350
Accretion and dividend on series A
convertible preferred stock
(4,240
)
(4,224
)
Undistributed earnings attributable to
preferred stockholders
(1,469
)
(470
)
Net income attributable to common
stockholders
$
11,513
$
3,656
Net income per share attributable to
common stockholders
Basic
$
0.08
$
0.03
Diluted
$
0.08
$
0.02
Weighted-average shares used to compute
net income per share attributable to common stockholders
Basic
145,299
144,739
Diluted
148,757
150,436
(1) Includes stock-based compensation
expense as follows:
Three Months Ended
April 30,
2024
2023
Cost of revenue
$
4,621
$
4,485
Research and development
17,819
17,002
Sales and marketing
17,783
15,318
General and administrative
10,939
10,472
Total stock-based compensation
$
51,162
$
47,277
BOX, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Three Months Ended
April 30,
2024
2023
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income
$
17,222
$
8,350
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
4,688
12,906
Stock-based compensation expense
51,162
47,277
Amortization of deferred commissions
13,360
13,748
Deferred income taxes
2,502
120
Other
(1,685
)
320
Changes in operating assets and
liabilities:
Accounts receivable, net
135,565
129,805
Deferred commissions
(7,850
)
(8,113
)
Operating lease right-of-use assets,
net
8,536
11,086
Other assets
(1,666
)
(1,939
)
Accounts payable, accrued expenses and
other liabilities
(16,186
)
(20,864
)
Operating lease liabilities
(8,937
)
(13,065
)
Deferred revenue
(65,507
)
(54,701
)
Net cash provided by operating
activities
131,204
124,930
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of short-term investments
(47,489
)
(35,438
)
Maturities of short-term investments
24,896
33,000
Sales of short-term investments
3,567
—
Purchases of property and equipment
(1,276
)
(2,952
)
Proceeds from sales of property and
equipment
2,696
631
Capitalized internal-use software
costs
(5,564
)
(3,833
)
Other
—
(190
)
Net cash used in investing activities
(23,170
)
(8,782
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Repurchases of common stock
(32,134
)
(42,371
)
Payments of dividends to preferred
stockholders
(3,750
)
(3,693
)
Proceeds from exercise of stock
options
9,637
760
Proceeds from issuances of common stock
under employee stock purchase plan
15,677
16,045
Employee payroll taxes paid for net
settlement of stock awards
(21,309
)
(20,576
)
Principal payments of finance lease
liabilities
(2,141
)
(9,881
)
Other
(1,675
)
(1,205
)
Net cash used in financing activities
(35,695
)
(60,921
)
Effect of exchange rate changes on
cash, cash equivalents, and restricted cash
(6,211
)
(2,051
)
Net increase in cash, cash equivalents,
and restricted cash
66,128
53,176
Cash, cash equivalents, and restricted
cash, beginning of period
384,257
429,040
Cash, cash equivalents, and restricted
cash, end of period
$
450,385
$
482,216
BOX, INC.
RECONCILIATION OF GAAP TO
NON-GAAP DATA
(In Thousands, Except Per
Share Data and Percentages)
(Unaudited)
Three Months Ended
April 30,
2024
2023
GAAP gross profit
$
206,406
$
190,247
Stock-based compensation
4,621
4,485
Acquired intangible assets
amortization
1,152
1,452
Non-GAAP gross profit
$
212,179
$
196,184
GAAP gross margin
78.0
%
75.5
%
Stock-based compensation
1.8
1.8
Acquired intangible assets
amortization
0.4
0.6
Non-GAAP gross margin
80.2
%
77.9
%
GAAP operating income
$
18,007
$
8,335
Stock-based compensation
51,162
47,277
Acquired intangible assets
amortization
1,152
1,452
Expenses related to litigation
79
292
Non-GAAP operating income
$
70,400
$
57,356
GAAP operating margin
6.8
%
3.3
%
Stock-based compensation
19.3
18.8
Acquired intangible assets
amortization
0.5
0.6
Expenses related to litigation
—
0.1
Non-GAAP operating margin
26.6
%
22.8
%
GAAP net income attributable to common
stockholders
$
11,513
$
3,656
Stock-based compensation
51,162
47,277
Acquired intangible assets
amortization
1,152
1,452
Expenses related to litigation
79
292
Amortization of debt issuance costs
476
474
Undistributed earnings attributable to
preferred stockholders
(5,982
)
(5,632
)
Non-GAAP net income attributable to common
stockholders
$
58,400
$
47,519
GAAP net income per share attributable to
common stockholders, diluted
$
0.08
$
0.02
Stock-based compensation
0.34
0.32
Acquired intangible assets
amortization
0.01
0.01
Expenses related to litigation
—
—
Amortization of debt issuance costs
—
—
Undistributed earnings attributable to
preferred stockholders
(0.04
)
(0.03
)
Non-GAAP net income per share attributable
to common stockholders, diluted
$
0.39
$
0.32
Weighted-average shares used to compute
net income per share attributable to common stockholders,
diluted
148,757
150,436
GAAP net cash provided by operating
activities
$
131,204
$
124,930
Proceeds from sales of property and
equipment, net of purchases
1,420
(2,321
)
Principal payments of finance lease
liabilities
(2,141
)
(9,881
)
Capitalized internal-use software
costs
(7,239
)
(4,480
)
Non-GAAP free cash flow
$
123,244
$
108,248
GAAP net cash used in investing
activities
$
(23,170
)
$
(8,782
)
GAAP net cash used in financing
activities
$
(35,695
)
$
(60,921
)
BOX, INC.
RECONCILIATION OF GAAP REVENUE
TO BILLINGS
(In Thousands)
(Unaudited)
Three Months Ended
April 30,
2024
2023
GAAP revenue
$
264,658
$
251,898
Deferred revenue, end of period
513,572
507,385
Less: deferred revenue, beginning of
period
(586,871
)
(566,630
)
Contract assets, beginning of period
2,452
1,900
Less: contract assets, end of period
(3,345
)
(2,642
)
Billings
$
190,466
$
191,911
BOX, INC.
RECONCILIATION OF GAAP TO
NON-GAAP NET INCOME PER SHARE GUIDANCE
(In Thousands, Except Per
Share Data)
(Unaudited)
Three Months Ended
Fiscal Year Ended
July 31, 2024
January 31, 2025
GAAP net income per share attributable to
common stockholders range, diluted
$
0.06
-
$
0.07
$
0.20
-
$
0.24
Stock-based compensation
0.37
0.37
1.45
1.45
Acquired intangible asset amortization
0.01
0.01
0.03
0.03
Acquisition-related expenses
—
—
0.01
0.01
Expenses related to litigation
—
—
0.01
0.01
Amortization of debt issuance costs
—
—
0.01
0.01
Undistributed earnings attributable to
preferred stockholders
(0.04
)
(0.04
)
(0.17
)
(0.17
)
Non-GAAP net income per share attributable
to common stockholders range, diluted
$
0.40
-
$
0.41
$
1.54
-
$
1.58
Weighted-average shares, diluted
148,500
150,000
BOX, INC.
RECONCILIATION OF GAAP TO
NON-GAAP OPERATING MARGIN GUIDANCE
(Unaudited)
Three Months Ended
Fiscal Year Ended
July 31, 2024
January 31, 2025
GAAP operating margin
6.0
%
6.5
%
Stock-based compensation
20.5
20.0
Acquired intangible assets
amortization
0.5
0.5
Non-GAAP operating margin
27.0
%
27.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240528886744/en/
Investors: Cynthia Hiponia and Elaine Gaudioso +1 650-209-3463
ir@box.com
Media: Denis Roy and Rachel Levine +1 650-543-6926
press@box.com
Grafico Azioni Box (NYSE:BOX)
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