- GAAP Operating Margin Up 4 Percentage Points and Delivered
Positive Non-GAAP Operating Margin, Up 5 Percentage Points
Year-Over-Year
- Deals Over $100,000 Up 36% Year-Over-Year
- Strong Add-On Product Attach Rates of Over 80% Across
Six-Figure Deals
Box, Inc. (NYSE:BOX), a leader in cloud content management,
today announced financial results for the second quarter of fiscal
year 2020, which ended July 31, 2019.
“We made significant progress on our key objectives in Q2, as we
continued to deliver more products to our customers that enable
higher value use cases, while executing on the most compelling
product roadmap in our history,” said Aaron Levie, co-founder and
CEO of Box. “We drove strong add-on product attach rates of more
than 80% across our six-figure deals in Q2. Customers are
increasingly adopting Box’s comprehensive Cloud Content Management
solutions to protect their most important information with
frictionless security and compliance, streamline internal and
external collaboration and workflows, and enable a more productive
workplace by leveraging a best-of-breed IT stack.”
“We remain focused on driving long-term growth as enterprises
implement our more robust product portfolio,” said Dylan Smith,
co-founder and CFO of Box. “We continued to deliver operational
efficiencies in the second quarter on our path to achieving our
first full year of non-GAAP profitability in FY20, and we are
committed to delivering meaningful operating margin improvements in
FY21 and beyond.”
Adoption of the New Lease Standard - ASC Topic 842
Box adopted the new lease standard, Accounting Standards
Codification Topic 842 (“ASC 842”), on a modified retrospective
basis, effective February 1, 2019. Financial results for reporting
periods in Box’s fiscal year ending January 31, 2020 are presented
in compliance with the new lease standard. Historical financial
results for reporting periods prior to fiscal year 2020 are
presented in conformity with amounts previously disclosed under the
prior lease standard, Accounting Standards Codification Topic 840
(“ASC 840”). The adoption of ASC 842 did not have a material effect
on Box’s condensed consolidated statements of operations and cash
flows, however, did materially increase Box’s assets and
liabilities on the condensed consolidated balance sheet.
Fiscal Second Quarter Financial Highlights
- Revenue for the second quarter of fiscal year 2020 was $172.5
million, an increase of 16% from the second quarter of fiscal year
2019.
- Remaining performance obligations as of July 31, 2019 were
$640.5 million, an increase of 9% from the second quarter of fiscal
year 2019.
- Deferred revenue as of July 31, 2019 was $330.8 million, an
increase of 10% from the second quarter of fiscal year 2019.
- Billings for the second quarter of fiscal year 2020 were $172.9
million, an increase of 6% from the second quarter of fiscal year
2019.
- GAAP operating loss in the second quarter of fiscal year 2020
was $36.3 million, or 21% of revenue. This compares to a GAAP
operating loss of $37.2 million, or 25% of revenue, in the second
quarter of fiscal year 2019.
- Non-GAAP operating income in the second quarter of fiscal year
2020 was $0.5 million, or 0% of revenue. This compares to a
non-GAAP operating loss of $6.5 million, or 4% of revenue, in the
second quarter of fiscal year 2019.
- GAAP net loss per share, basic and diluted, in the second
quarter of fiscal year 2020 was $0.25 on 147.0 million weighted
average shares outstanding. This compares to a GAAP net loss per
share of $0.27 in the second quarter of fiscal year 2019 on 140.7
million weighted average shares outstanding.
- Non-GAAP net income per share, diluted, in the second quarter
of fiscal year 2020 was $0.00 on 153.2 million weighted average
diluted shares outstanding. This compares to a non-GAAP net loss
per share of $0.05 in the second quarter of fiscal year 2019.
- Net cash used in operating activities in the second quarter of
fiscal year 2020 totaled $4.7 million. This compares to net cash
used in operating activities of $1.3 million in the second quarter
of fiscal year 2019.
- Free cash flow in the first quarter of fiscal year 2020 was
negative $19.0 million. This compares to negative $10.3 million in
the second quarter of fiscal year 2019.
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.
Business Highlights since Last Earnings Release
- Delivered wins and expansions with leading organizations such
as City of Philadelphia, City National Corporation, IQVIA, and LPL
Financial.
- Recognized as a Leader in the “The Forrester New Wave™: Cloud
Content Platforms — Multitenant SaaS, Q3 2019” report. Box was the
only company to receive differentiated ratings in vision, roadmap,
and market approach.
- Announced the upcoming general availability of Box Shield, a
set of new security controls and intelligent threat detection
capabilities that enables enterprises to power secure collaboration
and workflows around their most valuable content.
- Announced the general availability of Box Relay, Box’s powerful
workflow engine that automates critical business processes across
an organization’s extended enterprise.
- Announced the general availability of Cascading Folder Level
Metadata, making it easier for users to add additional context to
content, structure business-centric data, and trigger workflows and
retention policies based on metadata.
- Launched updates to the Box Tasks and Notifications experience,
including an all new Task Center to view work and an enhanced
Notification Center to more easily track all relevant activities in
Box.
- Hosted Box World Tour Tokyo with thousands of customers,
partners, and IT industry leaders from across Japan.
- Welcomed Mark Wayland as chief revenue officer, leading Box’s
global sales organization. Mr. Wayland brings more than 25 years of
enterprise sales experience having held leadership roles at
Salesforce, Gartner, and most recently as chief revenue officer at
Tanium.
Outlook
- Q3 FY20 Guidance: Revenue is expected to be in the range
of $174 million to $175 million. GAAP basic and diluted net loss
per share are expected to be in the range of $0.28 to $0.27.
Non-GAAP basic and diluted net (loss) income per share are expected
to be in the range of $(0.01) to $0.00. Weighted average basic and
diluted shares outstanding are expected to be approximately 149
million and 153 million, respectively.
- Full Year FY20 Guidance: Revenue is expected to be in
the range of $690 million to $692 million. GAAP basic and diluted
net loss per share are expected to be in the range of $1.03 to
$1.01. Non-GAAP basic and diluted net income per share are expected
to be in the range of $0.00 to $0.02. The weighted average basic
and diluted shares outstanding are expected to be approximately 148
million and 153 million, respectively.
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, certain legal settlement and related costs. Box has
provided a reconciliation of GAAP to non-GAAP net income (loss) per
share 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 www.box.com/investors for a period of 90 days
after the date of the call.
The access details for the live conference call are: +
1-833-231-7240 (U.S. and Canada), conference ID: 1857832 +
1-647-689-4084 (international), conference ID: 1857832
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: + 1-800-585-8367 (U.S. and Canada),
conference ID: 1857832 + 1-416-621-4642 (international), conference
ID: 1857832
Box has used, and intends to continue to use, its Investor
Relations website (www.box.com/investors), as well as certain
Twitter 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 Twitter 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 Twitter 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 and uncertainties, including statements regarding
Box’s expectations regarding the size of its market opportunity,
expectations regarding its leadership position in the cloud content
management market, the demand for its products, its ability to
scale its business and drive operating efficiencies, its ability to
achieve revenue targets, expectations regarding its ability to
achieve profitability on a quarterly or ongoing basis, its
expectations regarding free cash flow, its ability to continue to
grow unrecognized revenue and remaining performance obligations,
the timing of recent and planned product introductions and
enhancements, the short- and long-term success, market adoption and
retention, capabilities, and benefits of such product introductions
and enhancements, and the success of strategic partnerships, as
well as expectations regarding its revenue, gross margin, GAAP and
non-GAAP net income (loss) per share, non-GAAP operating margins
for future periods, the related components of GAAP and non-GAAP net
income (loss) per share, and weighted average outstanding share
count expectations for Box’s fiscal third quarter and full fiscal
year 2020 in the section titled “Outlook” above. 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; (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, 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; and (8) Box’s ability to realize the expected benefits of
its third-party partnerships.
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 Quarterly
Report on Form 10-Q filed for the fiscal quarter ended April 30,
2019. These documents are available on the SEC Filings section of
Box’s Investor Relations website located at www.box.com/investors.
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 operating income (loss), non-GAAP
operating margin, non-GAAP net income (loss), non-GAAP net income
(loss) per share, billings, remaining performance obligations, and
free cash flow. 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 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 (1) they allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision-making and (2) they 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.
Non-GAAP operating income (loss) and non-GAAP operating margin.
Box defines non-GAAP operating income (loss) as operating loss
excluding expenses related to stock-based compensation (“SBC”),
intangible assets amortization, and as applicable, other special
items. Non-GAAP operating margin is defined as non-GAAP operating
income (loss) 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 involves a high degree of judgment and
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. Furthermore, unlike cash
compensation, the value of stock options, which is an element of
Box’s ongoing stock-based compensation expense, is determined using
a complex formula that incorporates factors, such as market
volatility, that are beyond Box’s control. For restricted stock
unit awards, the amount of stock-based compensation expenses is not
reflective of the value ultimately received by the grant
recipients. 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
acquisition-related 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, one that is
not typically affected by operations during any particular period.
Box further excludes expenses related to certain litigation because
they are considered by management to be special items outside Box’s
core operating results.
Non-GAAP net income (loss) and non-GAAP net income (loss) per
share. Box defines non-GAAP net income (loss) as GAAP net income
(loss) excluding expenses related to SBC, intangible assets
amortization, and as applicable, other special items. Box defines
non-GAAP net income (loss) per share as non-GAAP net income (loss)
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 will help 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 given that 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, offset by contract assets. 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 and invoicing is not dependent on a future event such as
the delivery of a specific new product or feature, or the
achievement of contractual contingencies. 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 as it is calculated in accordance
with GAAP, specifically under ASC Topic 606.
Free cash flow. Box defines 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. Box specifically
identifies adjusting items in the reconciliation of GAAP to
non-GAAP financial measures. Box considers 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.
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.
About Box
Box (NYSE:BOX) is a leading Cloud Content Management platform
that enables organizations to accelerate business processes, power
workplace collaboration and protect their most valuable
information, all while working with a best-of-breed enterprise IT
stack. Founded in 2005, Box works with 69 percent of the Fortune
500, including AstraZeneca, General Electric, JLL, and Nationwide,
to drive business outcomes. Box is headquartered in Redwood City,
California, with offices across the United States, Europe and Asia.
To learn more about Box, visit http://www.box.com.
BOX, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In Thousands)
July 31,
January 31,
2019
*
2019
**
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
201,489
$
217,518
Accounts receivable, net
117,903
175,130
Prepaid expenses and other current
assets
20,268
14,223
Deferred commissions
24,581
21,683
Total current assets
364,241
428,554
Property and equipment, net
161,868
137,703
Operating lease right-of-use assets,
net
211,917
—
Goodwill
18,740
18,740
Restricted cash
—
238
Deferred commissions, non-current
54,226
53,880
Other long-term assets
16,324
11,046
Total assets
$
827,316
$
650,161
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
18,831
$
15,431
Accrued compensation and benefits
21,921
34,484
Accrued expenses and other current
liabilities
28,189
31,378
Finance lease liabilities
36,241
28,317
Operating lease liabilities
37,784
—
Deferred revenue
315,057
353,590
Total current liabilities
458,023
463,200
Debt, non-current
40,000
40,000
Finance lease liabilities, non-current
62,254
44,597
Operating lease liabilities,
non-current
222,264
—
Deferred revenue, non-current
15,777
21,451
Other long-term liabilities
6,732
49,508
Total liabilities
805,050
618,756
Stockholders’ equity:
Common stock (1)
15
14
Additional paid-in capital
1,230,441
1,166,443
Treasury stock
(1,177
)
(1,177
)
Accumulated other comprehensive (loss)
income
(53
)
23
Accumulated deficit
(1,206,960
)
(1,133,898
)
Total stockholders’ equity
22,266
31,405
Total liabilities and stockholders’
equity
$
827,316
$
650,161
(1)
As of July 31, 2019, there were 147,722
shares of Box’s Class A common stock outstanding.
*
As reported and disclosed under ASC Topic
842
**
As reported and disclosed under ASC Topic
840
BOX, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In Thousands, Except Per
Share Data)
(Unaudited)
Three Months Ended
Six Months Ended
July 31,
July 31,
2019
*
2018
**
2019
*
2018
**
Revenue
$
172,549
$
148,222
$
335,523
$
288,729
Cost of revenue(2)
53,872
42,605
102,556
81,673
Gross profit
118,677
105,617
232,967
207,056
Operating expenses:
Research and development(2)
49,693
41,830
95,937
80,078
Sales and marketing(1)(2)
80,405
76,984
159,225
153,982
General and administrative(1)(2)
24,856
24,022
49,463
46,075
Total operating expenses
154,954
142,836
304,625
280,135
Loss from operations
(36,277
)
(37,219
)
(71,658
)
(73,079
)
Interest expense, net
(335
)
(91
)
(403
)
(161
)
Other income (loss), net
693
(579
)
(187
)
(922
)
Loss before provision for income taxes
(35,919
)
(37,889
)
(72,248
)
(74,162
)
Provision for income taxes
315
196
814
560
Net loss
$
(36,234
)
$
(38,085
)
$
(73,062
)
$
(74,722
)
Net loss per share, basic and diluted
$
(0.25
)
$
(0.27
)
$
(0.50
)
$
(0.54
)
Weighted-average shares used to compute
net loss per share,
basic and diluted
147,032
140,718
146,205
139,639
(1) Intangible assets amortization was not
material for the periods presented.
(2) Includes stock-based compensation
expense as follows:
Three Months Ended
Six Months Ended
July 31,
July 31,
2019
2018
2019
2018
Cost of revenue
$
4,360
$
3,561
$
7,971
$
6,682
Research and development
15,250
11,477
28,225
21,625
Sales and marketing
9,994
9,932
19,394
17,993
General and administrative
7,201
5,713
13,577
10,996
Total stock-based compensation
$
36,805
$
30,683
$
69,167
$
57,296
*
As reported and disclosed under ASC Topic
842
**
As reported and disclosed under ASC Topic
840
BOX, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Three Months Ended
Six Months Ended
July 31,
July 31,
2019
*
2018
**
2019
*
2018
**
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss
$
(36,234
)
$
(38,085
)
$
(73,062
)
$
(74,722
)
Adjustments to reconcile net loss to net
cash (used in) provided by
operating activities:
Depreciation and amortization
13,439
11,849
26,064
23,244
Stock-based compensation expense
36,805
30,683
69,167
57,296
Amortization of deferred commissions
6,071
4,040
11,710
7,715
Others
25
26
(122
)
5
Changes in operating assets and
liabilities:
Accounts receivable, net
(24,248
)
(23,754
)
57,227
47,936
Deferred commissions
(8,878
)
(8,588
)
(14,954
)
(13,304
)
Prepaid expenses and other assets
(457
)
267
(4,839
)
(4,933
)
Operating lease right-of-use assets,
net
8,878
—
17,438
—
Accounts payable
6,472
(1,680
)
3,285
(1,205
)
Accrued expenses and other liabilities
2,516
9,407
(9,311
)
(15,267
)
Operating lease liabilities
(9,463
)
—
(17,590
)
—
Deferred revenue
389
14,568
(44,207
)
(9,592
)
Net cash (used in) provided by operating
activities
(4,685
)
(1,267
)
20,806
17,173
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of property and equipment
(1,552
)
(3,326
)
(3,166
)
(7,366
)
Capitalized internal-use software
costs
(2,727
)
—
(4,013
)
—
Proceeds from sales of property and
equipment
3
—
6
1
Acquisitions
—
(458
)
—
(458
)
Net cash used in investing activities
(4,276
)
(3,784
)
(7,173
)
(7,823
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from exercise of stock
options
1,045
9,469
2,244
12,831
Proceeds from issuances of common stock
under employee stock
purchase plan
—
—
13,605
11,846
Employee payroll taxes paid related to net
share settlement of
restricted stock units
(10,970
)
(12,010
)
(25,561
)
(25,305
)
Acquisition related contingent
consideration
(936
)
—
(936
)
—
Principal payments of finance lease
liabilities
(9,991
)
(5,752
)
(19,145
)
(12,902
)
Net cash used in financing activities
(20,852
)
(8,293
)
(29,793
)
(13,530
)
Effect of exchange rate changes on
cash, cash equivalents,
and restricted cash
(134
)
(158
)
(107
)
(282
)
Net decrease in cash, cash equivalents,
and restricted cash
(29,947
)
(13,502
)
(16,267
)
(4,462
)
Cash, cash equivalents, and restricted
cash, beginning of
period
231,436
217,466
217,756
208,426
Cash, cash equivalents, and restricted
cash, end of period
$
201,489
$
203,964
$
201,489
$
203,964
*
As reported and disclosed under ASC Topic
842
**
As reported and disclosed under ASC Topic
840
BOX, INC.
RECONCILIATION OF GAAP TO
NON-GAAP DATA
(In Thousands, Except Per
Share Data and Percentages)
(Unaudited)
Three Months Ended
Six Months Ended
July 31,
July 31,
2019
2018
2019
2018
GAAP operating loss
$
(36,277
)
$
(37,219
)
$
(71,658
)
$
(73,079
)
Stock-based compensation
36,805
30,683
69,167
57,296
Intangible assets amortization
—
10
—
24
Non-GAAP operating income (loss)
$
528
$
(6,526
)
$
(2,491
)
$
(15,759
)
GAAP operating margin
(21
)
%
(25
)
%
(22
)
%
(25
)
%
Stock-based compensation
21
21
21
20
Intangible assets amortization
—
—
—
—
Non-GAAP operating margin
—
%
(4
)
%
(1
)
%
(5
)
%
GAAP net loss
$
(36,234
)
$
(38,085
)
$
(73,062
)
$
(74,722
)
Stock-based compensation
36,805
30,683
69,167
57,296
Intangible assets amortization
—
10
—
24
Non-GAAP net income (loss)
$
571
$
(7,392
)
$
(3,895
)
$
(17,402
)
GAAP net loss per share, basic and
diluted
$
(0.25
)
$
(0.27
)
$
(0.50
)
$
(0.54
)
Stock-based compensation
0.25
0.22
0.47
0.42
Intangible assets amortization
—
—
—
—
Non-GAAP net income (loss) per share,
basic
$
0.00
$
(0.05
)
$
(0.03
)
$
(0.12
)
Non-GAAP net income (loss) per share,
diluted
$
0.00
$
(0.05
)
$
(0.03
)
$
(0.12
)
Weighted-average shares used to compute
GAAP net loss per
share, basic and diluted
147,032
140,718
146,205
139,639
Weighted-average shares used to compute
Non-GAAP net
income (loss) per share
Basic
147,032
140,718
146,205
139,639
Diluted
153,191
140,718
146,205
139,639
Net cash (used in) provided by operating
activities
$
(4,685
)
$
(1,267
)
$
20,806
$
17,173
Purchases of property and equipment
(1,552
)
(3,326
)
(3,166
)
(7,366
)
Principal payments of finance lease
liabilities
(9,991
)
(5,752
)
(19,145
)
(12,902
)
Capitalized internal-use software
costs
(2,727
)
—
(4,013
)
—
Free cash flow
$
(18,955
)
$
(10,345
)
$
(5,518
)
$
(3,095
)
Net cash used in investing activities
$
(4,276
)
$
(3,784
)
$
(7,173
)
$
(7,823
)
Net cash used in financing activities
$
(20,852
)
$
(8,293
)
$
(29,793
)
$
(13,530
)
BOX, INC.
RECONCILIATION OF GAAP REVENUE
TO BILLINGS
(In Thousands)
(Unaudited)
Three Months Ended
Six Months Ended
July 31,
July 31,
2019
2018
2019
2018
GAAP revenue
$
172,549
$
148,222
$
335,523
$
288,729
Deferred revenue, end of period
330,834
301,517
330,834
301,517
Less: deferred revenue, beginning of
period
(330,445
)
(286,949
)
(375,041
)
(311,109
)
*
Contract assets, beginning of period
—
195
3
582
Less: contract assets, end of period
—
(157
)
—
(157
)
Billings
$
172,938
$
162,828
$
291,319
$
279,562
*
Balance as of February 1, 2018 upon the
adoption of ASC Topic 606
RECONCILIATION OF GAAP NET
LOSS TO NON-GAAP NET (LOSS) INCOME PER SHARE GUIDANCE
(In Thousands, Except Per
Share Data)
(Unaudited)
For the Three Months Ended
October 31, 2019
*
For the Year Ended January 31,
2020
*
GAAP net loss per share range, basic and
diluted
$(0.28-0.27)
$(1.03-1.01)
Stock-based compensation
0.27
1.03
Non-GAAP net (loss) income per share
range, basic and diluted
$(0.01)-0.00
$0.00-0.02
Weighted-average shares used to compute
GAAP net loss per share, basic and diluted
148,549
147,712
Weighted-average shares used to compute
Non-GAAP net (loss) income per share
Basic
148,549
147,712
Diluted
152,826
153,350
*
For the three months ended October 31,
2019 and the fiscal year ended January 31, 2020, the guidance for
non-GAAP net (loss) income per share is based on the basic and
diluted weighted-average shares outstanding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190828005660/en/
Investors: Alice Kousoum Lopatto and Elaine Gaudioso +1
650-209-3467 ir@box.com
Media: Denis Roy and Rachel Levine +1 650-543-6926
press@box.com
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