Core Viewpoint - The article provides an update on Box, Inc. (NYSE: BOX) following a previous recommendation for a buy rating, emphasizing the company's potential for growth acceleration and the importance of a fundamentals-based approach to value investing [1]. Group 1: Investment Philosophy - The investment philosophy focuses on seeking companies that demonstrate long-term durability and steady growth, rather than merely low multiple stocks [1]. - There is a belief that while valuation is important, in certain situations, the potential for growth can outweigh immediate price concerns [1]. Group 2: Company Characteristics - The ideal companies for investment are characterized by a robust balance sheet and lack of cyclicality, which contributes to their long-term growth prospects [1].

Core Insights - The Asia-Pacific Food Gifting Market is culturally significant, with food symbolizing goodwill in various celebrations and daily interactions [1][4] - The market is projected to grow at a CAGR of over 6.10% from 2024 to 2029, driven by demand for premium, personalized, and health-conscious food gifts [3][6] - E-commerce is a key enabler for market expansion, allowing consumers to easily send food gifts [2][5] Market Overview - The market is characterized by a diverse range of products, including traditional sweets, chocolates, and gourmet hampers [2][3] - Major players focus on luxury and convenience, while local companies thrive by addressing specific cultural preferences [4][6] - Offline retail remains important, providing a tactile shopping experience that is valued in cultures with rich gifting traditions [6] Trends and Drivers - Key trends include the rising popularity of vegan, gluten-free, and sugar-free options, reflecting a shift towards healthier lifestyle choices [3] - Collaborations with celebrity chefs and influencers are enhancing product appeal through exclusive offerings [5] - Cultural events like Lunar New Year and Diwali significantly drive gifting practices in the region [4] Regional Insights - China is highlighted as a leading market due to its cultural practices, economic growth, and a robust e-commerce sector [6] - The report provides a comprehensive analysis of market size, regional dynamics, and distribution channels, offering strategic insights for stakeholders [6]

Financial Performance - For the three months ended April 30, 2025, revenue was $276.3 million, a year-over-year growth of 4%[113] - Billings for the three months ended April 30, 2025, were $242.3 million, an increase of 27% from $190.5 million for the same period in 2024[123] - Revenue for the three months ended April 30, 2025 was $276,272,000, a $11,614,000 or 4% increase from $264,658,000 in 2024, driven by seat growth and strong attach rates[145][147] - Gross profit for the three months ended April 30, 2025, was $215.6 million, with a gross margin of 78.0%[113] - Operating income for the three months ended April 30, 2025, was $6.3 million, with an operating margin of 2.3%[113] - Non-GAAP free cash flow for the three months ended April 30, 2025, was $118.3 million, a decrease of 4% from $123.2 million for the same period in 2024[127] Remaining Performance Obligations - Remaining performance obligations (RPO) as of April 30, 2025, were $1.469 billion, representing a 21% increase from $1.212 billion as of April 30, 2024[119] - The increase in RPO was primarily driven by expansion within existing customers and the addition of new customers, with a 390 basis point impact from favorable foreign currency exchange rates[120] Customer Retention - The net retention rate is a key metric indicating the long-term value of subscription agreements, reflecting the company's ability to retain and grow revenue from existing customers[129] - The net retention rate was 102% and 101% as of April 30, 2025 and 2024, respectively, indicating strong customer retention despite budget scrutiny[130] - The company expects to maintain a net retention rate above 100% in the foreseeable future as it continues to penetrate customer accounts[130] Expenses - Cost of revenue increased by $2,421,000 or 4% to $60,673,000, with gross margin remaining at 78%[148] - Research and development expenses rose by $9,628,000 or 15% to $72,301,000, representing 26% of revenue, driven by increased headcount and related costs[150][151] - Sales and marketing expenses increased by $6,426,000 or 7% to $99,099,000, accounting for 36% of revenue, influenced by workforce reorganization and employee-related costs[152][153] - General and administrative expenses grew by $4,808,000 or 15% to $37,861,000, representing 14% of revenue, primarily due to increased stock-based compensation and headcount[154][155] Cash Flow and Investments - As of April 30, 2025, cash and cash equivalents totaled $792.1 million, with operating cash flow generated of $127.1 million during the three months[161] - Net cash provided by operating activities decreased by $4.1 million to $127.1 million, attributed to a $9.0 million decrease in net income[162] - Net cash used in investing activities decreased by $12.8 million to $(10.4) million, primarily due to a $14.2 million decrease in purchases of short-term investments[164] - Net cash used in financing activities increased by $26.1 million to $(61.8) million, mainly due to a $17.5 million increase in stock repurchases[165] Debt and Financing - The company issued $460.0 million of 1.50% convertible senior notes due September 15, 2029, with a conversion price of approximately $43.46 per share[166] - A share repurchase plan was authorized, with $150 million allocated for repurchases; 1.6 million shares were repurchased at an average price of $31.28 per share for a total of $49.6 million[171] - The company had no debt outstanding on the June 2023 Facility as of April 30, 2025[169] Foreign Currency Exposure - Approximately one-third of the company's revenue is represented by customer contracts denominated in foreign currencies, including the Japanese Yen, Euro, and British Pound[186] - For the three months ended April 30, 2025, total revenue was unfavorably impacted by approximately 90 basis points due to foreign currency fluctuations compared to the prior period[187] - The company recognized $2.8 million in foreign currency exchange gains for the three months ended April 30, 2025, net of losses from foreign currency derivative contracts[189] - The company has entered into foreign currency derivative contracts to hedge unrealized gains and losses from remeasurement of monetary assets and liabilities denominated in foreign currencies[189] - The company has increasing exposure to fluctuations in foreign currency exchange rates as foreign operations grow, particularly in Japan[186] - The company has entered into foreign currency derivative contracts designated as cash flow hedges to mitigate the impact of foreign exchange rate fluctuations on future cash flows and earnings[189] Interest Income and Expense - Interest income for the three months ended April 30, 2025 was $6,698,000, an increase of $1,009,000 or 18% from $5,689,000 in 2024, attributed to higher cash and short-term investment balances[156][157] - Interest expense increased by $1.9 million, or 235%, to $(2.7) million for the three months ended April 30, 2025, primarily due to a $2.1 million increase related to the 2029 Convertible Notes[158] Tax Provision - Provision for income taxes rose by $0.3 million, or 7%, to $4.95 million, mainly due to increases in foreign income taxes from profitability and U.S. income taxes from the release of the U.S. valuation allowance[160]

Group 1 - Box's shares surged by as much as 19.7% following the release of strong Q1 fiscal-year 2026 results, with a peak increase of about 18% by 3:10 p.m. ET [1] - The company's Q1 2026 sales increased by 4% year over year to $276.3 million, while adjusted earnings per diluted share fell from $0.39 to $0.30, impacted by foreign currency exchange rates [3] - Analysts had expected earnings of approximately $0.26 per share on revenue around $275.1 million, indicating that Box's performance exceeded some market expectations [3] Group 2 - Looking ahead, Box's management anticipates Q2 revenue of approximately $290 million and adjusted earnings per share of around $0.30, compared to $270 million and $0.44 per share in the same period last year [4] - The company is recognizing $248 million of deferred tax credits, which has affected its bottom line, reducing Q1 adjusted earnings by $0.12 per share [5] - Box recently launched a new AI platform aimed at helping enterprise clients manage data for their AI agents, contributing to a positive outlook and stock performance [6]

Core Insights - Jack in the Box Inc. has been trading at a low valuation, prompting an investigation into the reasons behind this trend [1] Company Analysis - The company is perceived as a long-term investment opportunity, with a typical investment horizon of 5-10 years [1] - The investment strategy focuses on a balanced portfolio that includes growth, value, and dividend-paying stocks, with a particular emphasis on value stocks [1] Market Position - The current market sentiment towards Jack in the Box Inc. suggests potential undervaluation, which may present investment opportunities for value-focused investors [1]

Core Viewpoint - Box reported a decline in non-GAAP earnings for Q1 fiscal 2026, but total revenues exceeded expectations, driven by strong demand for its Suite offerings and new product introductions [1][2][3]. Financial Performance - Non-GAAP earnings for Q1 fiscal 2026 were 30 cents per share, a 23.1% decline year over year, but exceeded the Zacks Consensus Estimate by 20% [1] - Total revenues reached $276.3 million, surpassing the consensus mark by 0.67%, with a year-over-year increase of 4.4% on a reported basis and 5% on a constant-currency basis [1] - Billings for the quarter were $242.3 million, reflecting a 27% year-over-year increase (17% growth on a constant-currency basis) [3] - The company’s net retention rate improved to 102%, up 100 basis points year over year [4] Product and Service Developments - The revenue growth was primarily driven by the strong momentum of Box Suites, which bundle multiple products and services [2] - Box introduced a new Box AI Agent for Microsoft 365 Copilot, enhancing customer capabilities to interact with Box content [4] Operating Metrics - Non-GAAP gross margin for Q1 fiscal 2026 was 80.5%, an increase of 30 basis points year over year [6] - Operating expenses rose to $209.3 million, an 11.1% increase year over year, leading to an operating margin of 25.3%, which contracted by 130 basis points [6] Balance Sheet and Cash Flow - As of April 30, 2025, cash and cash equivalents were $689.7 million, up from $624.6 million at the end of January 2025 [7] - The company generated $127.1 million in cash from operations, an increase from $102.2 million in the previous quarter [8] - Non-GAAP free cash flow for the quarter was $118.3 million, with $50 million spent on share repurchases [9] Guidance - For Q2 fiscal 2026, Box expects revenues between $290 million and $291 million, indicating an 8% rise year over year [10] - For fiscal 2026, the revenue guidance is set between $1.16 billion and $1.17 billion, suggesting a 7% year-over-year increase [11]

Core Insights - Box Inc and Okta Inc reported earnings that exceeded estimates for the first quarter, but their market reactions diverged significantly due to differing guidance and outlooks [1] Box Inc (NYSE:BOX) - Box Inc's stock surged by 17.3%, trading at $36.88, and reached a record high of $37, marking its largest single-day percentage gain since March 2020 [2] - The company raised its profit and revenue guidance for 2026, which contributed to the positive market reaction [1] - Box's shares have increased by 15.4% year-to-date in 2025 [2] - The options market is highly active for Box, with trading volume at 40 times the intraday average, and the most active contract being the June 40 call [4] Okta Inc (NASDAQ:OKTA) - Okta Inc's stock fell by 13.6% to $108.43, indicating its worst performance since August, following eight price-target cuts, including a reduction by Barclays from $135 to $120 [3] - Despite the decline, Okta's shares are still up 38.1% for the year, having previously reached a three-year high of $127.57 on May 16 [3] - The options market for Okta is also seeing increased activity, with trading volume at 16 times the usual level, and the most active contract being the June 117 call [4]

Market Overview - The stock market is currently experiencing high volatility, with major indices fluctuating based on various tariff-related news [1] - There is significant dispersion between individual assets, indicating that stock pickers may find opportunities in this environment [1] Analyst Background - Gary Alexander has extensive experience in covering technology companies on Wall Street and has worked in Silicon Valley [1] - He has been an outside adviser to several seed-round startups, providing insights into current industry trends [1] - Alexander has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications [1]

You should not rely on any forward-looking statements, and Box assumes no obligation, nor do we intend, to update them. All information in this presentation is as of May 27, 2025. This presentation contains non-GAAP financial measures and key metrics relating to the company's past and expected future performance. You can find the reconciliation of these measures to the nearest comparable GAAP financial measures in the appendix at the end of this presentation. The company has not reconciled certain of the no ...

Core Viewpoint - The self-regulation of the loot box industry in the UK has failed, leading to widespread noncompliance and lack of enforcement, particularly affecting consumer protection for children [2][4][5] Group 1: Industry Self-Regulation - The previous Conservative UK government encouraged the gaming industry, represented by Ukie, to self-regulate instead of imposing legislation [1] - A study published in Royal Society Open Science indicates that compliance with self-regulation is very poor, with only 23.5% of the top 100 iPhone games disclosing the presence of loot boxes in their marketing [2] - Only 8.6% of these games consistently disclosed the probabilities of obtaining different rewards, highlighting a significant lack of transparency [2] Group 2: Enforcement Issues - Noncompliant games were reported to Ukie and the UK government over six months ago, yet no enforcement actions have been taken, allowing these games to remain available for download [3] - Ukie had previously promised that noncompliant games would face "severe fines" and "delisting" from app stores, but these promises have not been fulfilled [3] Group 3: Consumer Protection - The current state of noncompliance and lack of enforcement fails to protect consumers, especially children, as initially promised by the industry [4] - Companies are not only breaching self-regulation but also advertising regulations and consumer laws, indicating a need for more proactive enforcement by other regulators [4]