Fourth Quarter Revenue of $263 Million and
Fiscal 2024 Revenue of $1.04 Billion, In Line with Guidance
Fourth Quarter GAAP Operating Margin of 8% and
Non-GAAP Operating Margin of 26.7%, Exceeds Guidance
Fiscal 2024 GAAP Operating Margin of 5% and
Non-GAAP Operating Margin of 24.7%, Exceeds Guidance
Fourth Quarter GAAP Net Income Per Share of
$0.57 and Non-GAAP Net Income Per Share of $0.42, Exceeds
Guidance
Fiscal 2024 GAAP Net Income Per Share of $0.67
and Non-GAAP Net Income Per Share of $1.46, Exceeds Guidance
New $100 Million Expansion of Stock Repurchase
Program
Box, Inc. (NYSE:BOX), the leading Content Cloud, today announced
preliminary financial results for the fourth quarter and fiscal
year 2024, which ended January 31, 2024.
“With advancements in AI, companies are accelerating their
adoption of the cloud and transforming how they work with their
content,” said Aaron Levie, co-founder and CEO of Box. “Box is at
the center of some of the most important trends in technology
history as companies look to digitize and automate their
businesses, accelerate innovation with the power of AI and protect
their most important data. With Box AI and our exciting roadmap, we
are uniquely positioned to enable enterprises to address these
trends and power the full life cycle of work in the
enterprise.”
“In fiscal 2024 we surpassed a billion dollars in annual revenue
and significantly expanded our operating margin,” said Dylan Smith,
co-founder and CFO of Box. “Despite the macroeconomic pressures on
IT budgets that persisted throughout FY24, our operating discipline
and efficient cost structure enable us to continue to make
meaningful investments in our sales and marketing programs and
product roadmap as we deliver the leading Content Cloud for the
enterprise.”
Fiscal Fourth Quarter Financial Highlights
- Revenue for the fourth quarter of fiscal year 2024 was $262.9
million, a 2% increase from revenue for the fourth quarter of
fiscal year 2023 of $256.5 million, or 4% growth on a constant
currency basis.
- Remaining performance obligations (“RPO”) as of January 31,
2024 were $1.305 billion, a 5% increase from RPO as of January 31,
2023 of $1.245 billion, or 9% growth on a constant currency
basis.
- Billings for the fourth quarter of fiscal year 2024 were $379.3
million, a 6% increase from billings for the fourth quarter of
fiscal year 2023 of $357.1 million, or 10% growth on a constant
currency basis.
- GAAP gross profit for the fourth quarter of fiscal year 2024
was $200.2 million, or 76.1% of revenue. This compares to a GAAP
gross profit of $195.5 million, or 76.2% of revenue, in the fourth
quarter of fiscal year 2023.
- Non-GAAP gross profit for the fourth quarter of fiscal year
2024 was $206.1 million, or 78.4% of revenue. This compares to a
non-GAAP gross profit of $201.3 million, or 78.5% of revenue, in
the fourth quarter of fiscal year 2023.
- GAAP operating income in the fourth quarter of fiscal year 2024
was $21.2 million, or 8.1% of revenue. This compares to a GAAP
operating income of $19.7 million, or 7.7% of revenue, in the
fourth quarter of fiscal year 2023.
- Non-GAAP operating income in the fourth quarter of fiscal year
2024 was $70.1 million, or 26.7% of revenue. This compares to a
non-GAAP operating income of $66.6 million, or 26.0% of revenue, in
the fourth quarter of fiscal year 2023.
- GAAP diluted net income per share attributable to common
stockholders in the fourth quarter of fiscal year 2024 was $0.57 on
146.3 million weighted-average shares outstanding. This compares to
GAAP diluted net income per share attributable to common
stockholders of $0.10 in the fourth quarter of fiscal year 2023 on
150.5 million weighted-average shares outstanding. GAAP net income
per share attributable to common stockholders in the fourth quarter
of fiscal year 2024 includes a $0.51 income tax benefit from the
release of a valuation allowance on deferred tax assets and a
negative impact of $0.02 year-over-year from unfavorable foreign
exchange rates.
- Non-GAAP diluted net income per share attributable to common
stockholders in the fourth quarter of fiscal year 2024 was $0.42.
This compares to non-GAAP diluted net income per share attributable
to common stockholders of $0.37 in the fourth quarter of fiscal
year 2023. Non-GAAP net income per share attributable to common
stockholders in the fourth quarter of fiscal year 2024 includes a
negative impact of $0.02 year-over-year from unfavorable foreign
exchange rates.
- Net cash provided by operating activities in the fourth quarter
of fiscal year 2024 was $89.3 million. This compares to a net cash
provided by operating activities of $92.2 million in the fourth
quarter of fiscal year 2023.
- Non-GAAP free cash flow in the fourth quarter of fiscal year
2024 was $81.8 million, a 10% increase from non-GAAP free cash flow
of $74.7 million in the fourth quarter of fiscal year 2023.
Fiscal Year 2024 Financial Highlights
- Revenue for fiscal year 2024 was $1.038 billion, a 5% increase
from revenue for fiscal year 2023 of $0.991 billion, or 7% growth
on a constant currency basis.
- Billings for fiscal year 2024 were $1.057 billion, a 3%
increase from billings for fiscal year 2023 of $1.022 billion, or
6% growth on a constant currency basis.
- GAAP gross profit for the fiscal year 2024 was $777.1 million,
or 74.9% of revenue. This compares to a GAAP gross profit of $738.3
million, or 74.5% of revenue, in fiscal year 2023.
- Non-GAAP gross profit for fiscal year 2024 was $803.0 million,
or 77.4% of revenue. This compares to a non-GAAP gross profit of
$761.9 million, or 76.9% of revenue, in fiscal year 2023.
- GAAP operating income in fiscal year 2024 was $50.8 million, or
4.9% of revenue. This compares to a GAAP operating income of $36.8
million, or 3.7% of revenue, in fiscal year 2023.
- Non-GAAP operating income in fiscal year 2024 was $256.8
million, or 24.7% of revenue. This compares to a non-GAAP operating
income of $229.0 million, or 23.1% of revenue, in fiscal year
2023.
- GAAP diluted net income per share attributable to common
stockholders in fiscal year 2024 was $0.67 on 148.6 million
weighted-average shares outstanding. This compares to a GAAP
diluted net income per share attributable to common stockholders of
$0.06 in fiscal year 2023 on 150.2 million weighted-average shares
outstanding. GAAP net income per share attributable to common
stockholders in fiscal year 2024 includes a $0.51 income tax
benefit from the release of a valuation allowance on deferred tax
assets and a negative impact of $0.02 from unfavorable foreign
exchange rates.
- Non-GAAP diluted net income per share attributable to common
stockholders in fiscal year 2024 was $1.46. This compares to a
non-GAAP diluted net income per share attributable to common
stockholders of $1.20 in fiscal year 2023. Non-GAAP net income per
share attributable to common stockholders in fiscal year 2024
includes a negative impact of $0.02 from unfavorable foreign
exchange rates.
- Net cash provided by operating activities in fiscal year 2024
was $318.7 million, a 7% increase from net cash provided by
operating activities of $298.0 million in fiscal year 2023.
- Non-GAAP free cash flow in fiscal year 2024 was $269.0 million,
a 13% increase from non-GAAP free cash flow of $238.4 million in
fiscal year 2023.
For the purpose of this press release, 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 such as
Elf Cosmetics, Guardant Health, Inc., Hormel Foods Corporation,
IQVIA, Lineage Logistics Holdings, Novo Nordisk A/S, Schr�dinger,
Inc., United Parcel Service of America, Inc., and U.S. Department
of the Air Force.
- Announced that Box AI is generally available to customers on
Enterprise Plus plans. Box AI is a new suite of capabilities that
natively integrates advanced AI models into the Box Content
Cloud.
- Announced a new integration with Microsoft Azure OpenAI to
bring its advanced large language models to Box AI. The expanded
collaboration brings Box and Microsoft’s enterprise-grade standards
for security, privacy, and compliance to AI so customers can
realize the benefits of this groundbreaking technology.
- Acquired Crooze, a leading provider of no-code enterprise
content management applications built on the Box Platform. Box
intends to leverage Crooze’s team and technology to help
organizations address business-critical processes like contract
lifecycle management, digital asset management, controlled document
management, enterprise content libraries, and more.
- Announced the launch of the new Box app for Apple Vision Pro.
Designed to take advantage of spatial computing, Box for Apple
Vision Pro revolutionizes how people experience and collaborate on
content in the enterprise. The uniquely immersive experiences and
infinite desktop powered by the visionOS platform transforms how
people work with content, while relying on the security and
compliance of the Box Content Cloud.
- Announced that Box Sign has achieved support for compliance
with FDA 21 CFR Part 11 regulations for electronic signatures.
Available as part of the Box GxP Validation offering in the Box
Enterprise Plus plan, the newly released Part 11 e-signature
workflow capabilities in Box Sign offer functionality and controls
which, if properly configured and used, enable users to create
e-signatures compliant with the requirements of Part 11.
- Announced new consulting services that help customers safely
and securely implement an AI content strategy across their
organizations. These tailored offerings, available today through
Box Consulting, include customized workshops, implementation
roadmaps, managed deployment with comprehensive training and
support, as well as hands-on guidance to empower enterprises of all
sizes to execute their strategy successfully.
- Launched new features for Box Shield, enabling new automated
response actions as an option to Suspicious Location alerts,
increasing the speed of response to detected threats and reducing
the burden on the admin. Admins will now have the ability to enable
automated response actions for managed users when access is
detected from a non-permitted location.
- Announced the grantees of the Box Impact Fund, which provides
grants for digital transformation to nonprofit organizations doing
critical work in the areas of child welfare, crisis response and
the environment.
- Recognized as one of the Best Workplaces for Parents 2023 by
Great Place To Work® Institute U.S. and ranked number three on the
Best Companies to Work For in Japan 2024 by Great Place To Work®
Institute Japan.
Update on Share Repurchase Plan
On March 4, 2024, the Board of Directors authorized an expansion
of its stock repurchase program by $100 million.
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, we now
expect FX to be a 170 basis point headwind to full fiscal year 2025
revenue growth, 70 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 slightly more than 100
basis points, incrementally 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 will be
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 first quarter of fiscal year 2025
and full fiscal year 2025.
Q1 FY25 Guidance
- Revenue is expected to be in the range of $261 million to $263
million, up 4% year-over-year at the high-end of the range, or 7%
growth on a constant currency basis.
- GAAP operating margin is expected to be approximately 5.5%, and
non-GAAP operating margin is expected to be approximately 25%.
- GAAP net income per share attributable to common stockholders
is expected to be in the range of $0.04 to $0.05. GAAP EPS guidance
includes an expected negative impact of $0.04 from unfavorable
exchange rates and $0.02 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 $0.35 to $0.36.
Non-GAAP EPS guidance includes an expected negative impact of $0.04
from unfavorable exchange rates and $0.02 from the recognition of
deferred tax expenses in international countries.
- Weighted-average diluted shares outstanding are expected to be
approximately 147 million.
Full Year FY25 Guidance
- Revenue is expected to be in the range of $1.08 billion to
$1.085 billion, up 5% 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 7%, 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 $0.22 to $0.26. FY25 GAAP EPS
guidance includes an expected negative impact of $0.10 from
unfavorable exchange rates and $0.06 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 $1.53 to $1.57. FY25
non-GAAP EPS guidance includes an expected negative impact of $0.10
from unfavorable exchange rates and $0.06 from the recognition of
deferred tax expenses in international countries.
- Weighted-average diluted shares outstanding are expected to be
approximately 149 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 www.box.com/investors 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/453103508 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 (loss) per share, GAAP and non-GAAP
operating margins, the related components of GAAP and non-GAAP net
income (loss) per share, weighted-average outstanding share count
expectations for Box’s fiscal first 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 Annual Report on Form 10-K for
the fiscal year ended January 31, 2024. Box assumes no obligations
and does not intend to update these estimates prior to filing its
Form 10-K for the fiscal year ended January 31, 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 Quarterly
Report on Form 10-Q filed for the fiscal quarter ended October 31,
2023. 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 gross profit, non-GAAP gross margin,
non-GAAP operating income (loss), non-GAAP operating margin,
non-GAAP net income (loss) attributable to common stockholders,
non-GAAP net income (loss) 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 (loss) and non-GAAP operating margin.
Box defines non-GAAP operating income (loss) as operating income
(loss) 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 (loss)
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 (loss) attributable to common stockholders
and non-GAAP net income (loss) per share attributable to common
stockholders. Box defines non-GAAP net income (loss) attributable
to common stockholders as GAAP net income (loss) 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 (loss) per share attributable to common stockholders as
non-GAAP net income (loss) 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 empowers organizations to manage the entire content lifecycle,
work securely from anywhere, and integrate across best-of-breed
apps. 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)
January 31,
January 31,
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$
383,742
$
428,465
Short-term investments
96,948
32,783
Accounts receivable, net
281,487
264,515
Deferred commissions
45,817
48,040
Other current assets
34,186
32,960
Total current assets
842,180
806,763
Property and equipment, net
31,353
69,972
Operating lease right-of-use assets,
net
99,354
131,172
Goodwill
76,750
73,863
Deferred commissions, non-current
63,541
71,999
Deferred tax assets
75,665
—
Other long-term assets
52,320
53,396
Total assets
$
1,241,163
$
1,207,165
LIABILITIES, CONVERTIBLE PREFERRED
STOCK AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable, accrued expenses and
other current liabilities
$
52,737
$
79,810
Accrued compensation and benefits
36,872
44,086
Operating lease liabilities
26,812
47,752
Deferred revenue
562,859
544,179
Total current liabilities
679,280
715,827
Debt, net, non-current
370,822
369,351
Operating lease liabilities,
non-current
94,165
118,001
Other long-term liabilities
35,863
37,847
Total liabilities
1,180,130
1,241,026
Series A convertible preferred stock
492,095
489,990
Stockholders’ deficit:
Common stock
14
14
Additional paid-in capital
785,374
818,996
Accumulated other comprehensive loss
(9,686
)
(7,065
)
Accumulated deficit
(1,206,764
)
(1,335,796
)
Total stockholders’ deficit
(431,062
)
(523,851
)
Total liabilities, convertible preferred
stock and stockholders’ deficit
$
1,241,163
$
1,207,165
BOX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended
Fiscal Year Ended
January 31,
January 31,
2024
2023
2024
2023
Revenue
$
262,878
$
256,476
$
1,037,741
$
990,874
Cost of revenue (1)
62,721
61,014
260,612
252,556
Gross profit
200,157
195,462
777,129
738,318
Operating expenses:
Research and development (1)
61,907
60,724
248,767
243,529
Sales and marketing (1)
85,893
83,325
348,638
331,400
General and administrative (1)
31,193
31,703
128,971
126,549
Total operating expenses
178,993
175,752
726,376
701,478
Income from operations
21,164
19,710
50,753
36,840
Interest and other income (expense),
net
4,421
3,802
11,833
(2,433
)
Income before income taxes
25,585
23,512
62,586
34,407
(Benefit from) provision for income
taxes
(73,650
)
2,983
(66,446
)
7,624
Net income
$
99,235
$
20,529
$
129,032
$
26,783
Accretion and dividend on series A
convertible preferred stock
(4,294
)
(4,306
)
(17,105
)
(17,110
)
Undistributed earnings attributable to
preferred stockholders
(10,859
)
(1,853
)
(12,780
)
(1,106
)
Net income attributable to common
stockholders
$
84,082
$
14,370
$
99,147
$
8,567
Net income per share attributable to
common stockholders
Basic
$
0.58
$
0.10
$
0.69
$
0.06
Diluted
$
0.57
$
0.10
$
0.67
$
0.06
Weighted-average shares used to compute
net income per share attributable to common stockholders
Basic
143,925
143,555
144,203
143,592
Diluted
146,295
150,518
148,586
150,192
(1) Includes stock-based compensation
expense as follows:
Three Months Ended
Fiscal Year Ended
January 31,
January 31,
2024
2023
2024
2023
Cost of revenue
$
4,423
$
4,343
$
19,111
$
17,816
Research and development
16,785
16,523
70,240
68,900
Sales and marketing
16,212
14,201
65,886
58,448
General and administrative
9,846
9,917
43,546
40,468
Total stock-based compensation
$
47,266
$
44,984
$
198,783
$
185,632
BOX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (In Thousands) (Unaudited)
Three Months Ended
Fiscal Year Ended
January 31,
January 31,
2024
2023
2024
2023
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income
$
99,235
$
20,529
$
129,032
$
26,783
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
12,245
12,582
51,241
65,988
Stock-based compensation expense
47,266
44,984
198,783
185,632
Amortization of deferred commissions
13,424
13,644
54,227
53,522
Deferred income taxes
(75,366
)
860
(75,292
)
1,647
Other
(251
)
(613
)
2,478
2,312
Changes in operating assets and
liabilities
Accounts receivable, net
(115,156
)
(83,094
)
(21,876
)
(8,931
)
Deferred commissions
(16,121
)
(17,587
)
(44,482
)
(54,987
)
Operating lease right-of-use assets,
net
8,872
9,859
35,174
40,155
Other assets
6,334
1,312
7,256
(5,710
)
Accounts payable, accrued expenses and
other liabilities
8,248
10,612
(1,179
)
(1,899
)
Operating lease liabilities
(13,618
)
(11,450
)
(49,349
)
(44,555
)
Deferred revenue
114,227
90,549
32,714
38,025
Net cash provided by operating
activities
89,339
92,187
318,727
297,982
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of short-term investments
(63,027
)
(14,835
)
(169,416
)
(102,088
)
Maturities of short-term investments
28,950
27,000
107,950
240,000
Purchases of property and equipment, net
of sale proceeds
947
(1,609
)
(1,843
)
(4,433
)
Capitalized internal-use software
costs
(4,199
)
(5,054
)
(16,561
)
(12,064
)
Other
(2,732
)
(285
)
(2,922
)
(815
)
Net cash (used in) provided by investing
activities
(40,061
)
5,217
(82,792
)
120,600
CASH FLOWS FROM FINANCING
ACTIVITIES:
Repurchases of common stock
(21,209
)
(9,320
)
(177,131
)
(274,172
)
Payments of dividends to preferred
stockholders
(3,750
)
(3,807
)
(14,943
)
(15,057
)
Proceeds from issuance of common stock
under employee equity plans
186
6,528
28,203
32,187
Employee payroll taxes paid for net
settlement of restricted stock units
(16,353
)
(19,132
)
(74,651
)
(93,910
)
Principal payments of finance lease
liabilities
(4,045
)
(10,515
)
(30,176
)
(40,353
)
Other
(209
)
(68
)
(4,198
)
(5,190
)
Net cash used in financing activities
(45,380
)
(36,314
)
(272,896
)
(396,495
)
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
1,888
9,145
(7,822
)
(9,935
)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
5,786
70,235
(44,783
)
12,152
Cash, cash equivalents, and restricted
cash, beginning of period
378,471
358,805
429,040
416,888
Cash, cash equivalents, and restricted
cash, end of period
$
384,257
$
429,040
$
384,257
$
429,040
BOX, INC.
RECONCILIATION OF GAAP TO NON-GAAP DATA
(In Thousands, Except Per Share Data and Percentages)
(Unaudited)
Three Months Ended
Fiscal Year Ended
January 31,
January 31,
2024
2023
2024
2023
GAAP gross profit
$
200,157
$
195,462
$
777,129
$
738,318
Stock-based compensation
4,423
4,343
19,111
17,816
Acquired intangible assets
amortization
1,482
1,452
5,838
5,808
Workforce reorganization
—
—
912
—
Non-GAAP gross profit
$
206,062
$
201,257
$
802,990
$
761,942
GAAP gross margin
76.1
%
76.2
%
74.9
%
74.5
%
Stock-based compensation
1.7
1.7
1.8
1.8
Acquired intangible assets
amortization
0.6
0.6
0.6
0.6
Workforce reorganization
—
—
0.1
—
Non-GAAP gross margin
78.4
%
78.5
%
77.4
%
76.9
%
GAAP operating income
$
21,164
$
19,710
$
50,753
$
36,840
Stock-based compensation
47,266
44,984
198,783
185,632
Acquired intangible assets
amortization
1,482
1,452
5,838
5,808
Acquisition-related expenses
106
—
120
53
Fees related to shareholder activism
—
—
—
(77
)
Expenses related to litigation
52
415
361
722
Workforce reorganization
—
—
912
—
Non-GAAP operating income
$
70,070
$
66,561
$
256,767
$
228,978
GAAP operating margin
8.1
%
7.7
%
4.9
%
3.7
%
Stock-based compensation
18.0
17.5
19.2
18.7
Acquired intangible assets
amortization
0.6
0.6
0.6
0.6
Acquisition-related expenses
—
—
—
—
Fees related to shareholder activism
—
—
—
—
Expenses related to litigation
—
0.2
—
0.1
Workforce reorganization
—
—
—
—
Non-GAAP operating margin
26.7
%
26.0
%
24.7
%
23.1
%
GAAP net income attributable to common
stockholders
$
84,082
$
14,370
$
99,147
$
8,567
Stock-based compensation
47,266
44,984
198,783
185,632
Acquired intangible assets
amortization
1,482
1,452
5,838
5,808
Acquisition-related expenses
106
—
120
53
Fees related to shareholder activism
—
—
—
(77
)
Expenses related to litigation
52
415
361
722
Workforce reorganization
—
—
912
—
Amortization of debt issuance costs
476
473
1,899
1,888
Benefit from the release of a valuation
allowance on deferred tax assets
(75,240
)
—
(75,240
)
—
Undistributed earnings attributable to
preferred stockholders
2,958
(5,405
)
(15,147
)
(22,187
)
Non-GAAP net income attributable to common
stockholders
$
61,182
$
56,289
$
216,673
$
180,406
GAAP net income per share attributable to
common stockholders, diluted
$
0.57
$
0.10
$
0.67
$
0.06
Stock-based compensation
0.33
0.31
1.34
1.29
Acquired intangible assets
amortization
0.01
0.01
0.04
0.04
Acquisition-related expenses
—
—
—
—
Fees related to shareholder activism
—
—
—
—
Expenses related to litigation
—
—
—
0.01
Workforce reorganization
—
—
0.01
—
Amortization of debt issuance costs
—
0.01
0.01
0.01
Benefit from the release of a valuation
allowance on deferred tax assets
(0.51
)
—
(0.51
)
—
Undistributed earnings attributable to
preferred stockholders
0.02
(0.04
)
(0.10
)
(0.15
)
Non-GAAP net income per share attributable
to common stockholders, diluted
$
0.42
$
0.37
$
1.46
$
1.20
Weighted-average shares used to compute
net income per share attributable to common stockholders,
diluted
146,295
150,518
148,586
150,192
GAAP net cash provided by operating
activities
$
89,339
$
92,187
$
318,727
$
297,982
Purchases of property and equipment, net
of proceeds from sales
947
(1,894
)
(1,843
)
(4,433
)
Principal payments of finance lease
liabilities
(4,045
)
(10,515
)
(30,176
)
(40,353
)
Capitalized internal-use software
costs
(4,408
)
(5,122
)
(17,742
)
(14,751
)
Non-GAAP free cash flow
$
81,833
$
74,656
$
268,966
$
238,445
GAAP net cash (used in) provided by
investing activities
$
(40,061
)
$
5,217
$
(82,792
)
$
120,600
GAAP net cash used in financing
activities
$
(45,380
)
$
(36,314
)
$
(272,896
)
$
(396,495
)
BOX, INC.
RECONCILIATION OF GAAP REVENUE TO
BILLINGS (In Thousands) (Unaudited)
Three Months Ended
Fiscal Year Ended
January 31,
January 31,
2024
2023
2024
2023
GAAP revenue
$
262,878
$
256,476
$
1,037,741
$
990,874
Deferred revenue, end of period
586,871
566,630
586,871
566,630
Less: deferred revenue, beginning of
period
(471,963
)
(467,080
)
(566,630
)
(534,242
)
Contract assets, beginning of period
3,944
2,969
1,900
1,111
Less: contract assets, end of period
(2,452
)
(1,900
)
(2,452
)
(1,900
)
Billings
$
379,278
$
357,095
$
1,057,430
$
1,022,473
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
April 30, 2024
January 31, 2025
GAAP net income per share attributable to
common stockholders range, diluted
$
0.04
-
$
0.05
$
0.22
-
$
0.26
Stock-based compensation
0.34
0.34
1.40
1.40
Acquired intangible asset amortization
0.01
0.01
0.04
0.04
Expenses related to litigation
—
—
0.02
0.02
Amortization of debt issuance costs
—
—
0.01
0.01
Undistributed earnings attributable to
preferred stockholders
(0.04
)
(0.04
)
(0.16
)
(0.16
)
Non-GAAP net income per share attributable
to common stockholders range, diluted
$
0.35
-
$
0.36
$
1.53
-
$
1.57
Weighted-average shares, diluted
147,500
149,000
BOX, INC.
RECONCILIATION OF GAAP TO NON-GAAP OPERATING
MARGIN GUIDANCE (Unaudited)
Three Months Ended
Fiscal Year Ended
April 30, 2024
January 31, 2025
GAAP operating margin
5.5
%
7.0
%
Stock-based compensation
19.0
19.0
Acquired intangible assets
amortization
0.5
0.5
Expenses related to litigation
—
0.5
Non-GAAP operating margin
25.0
%
27.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240305484004/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
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