Box, Inc. (NYSE:BOX) Q1 2025 Earnings Conference Call May 28, 2024 5:00 PM ET Company Participants Cynthia Hiponia - Vice President, Investor Relations Aaron Levie - Co-Founder and Chief Executive Officer Dylan Smith - Co-Founder and Chief Financial Officer Conference Call Participants Brian Peterson - Raymond James & Associates Pinjalim Bora - JP Morgan Securities George Kurosawa - Steve Enders Josh Baer - Morgan Stanley George Iwanyc - Oppenheimer Rishi Jaluria - RBC Capital Markets Operator Hello, thank ...

Box (BOX) came out with quarterly earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.33%. A quarter ago, it was expected that this online storage provider would post earnings of $0.38 per share when it actually produced earnings of $0.42, delivering a surprise of 10.53%.Over the last four quarters, the compan ...

Revenue and Growth - Revenue for Q1 FY25 was $264.7 million, up 5% YoY, or 8% growth on a constant currency basis[3] - Q2 FY25 revenue guidance is $268 million to $270 million, up 3% YoY at the high-end, or 6% growth on a constant currency basis[8] - Full-year FY25 revenue guidance is $1.075 billion to $1.08 billion, up 4% YoY at the high-end, or 7% growth on a constant currency basis[10] - Revenue increased to $264.7 million in April 2024, up 5.1% from $251.9 million in April 2023[29] Non-GAAP Financial Metrics - Non-GAAP operating margin for Q1 FY25 was 26.6%, exceeding guidance[3] - Non-GAAP free cash flow for Q1 FY25 was $123.2 million, up 14% YoY[3] - Non-GAAP diluted net income per share for Q1 FY25 was $0.39, up from $0.32 in Q1 FY24[3] - Non-GAAP gross margin improved to 80.2% in April 2024 from 77.9% in April 2023[34] - Non-GAAP operating income increased to $70.4 million in April 2024, up from $57.4 million in April 2023[34] - Non-GAAP net income attributable to common stockholders rose to $58.4 million in April 2024 from $47.5 million in April 2023[34] - Non-GAAP net income per share for Q3 2024 is $0.40, with a range of $0.40 to $0.41[37] - Non-GAAP net income per share for FY 2025 is $1.54, with a range of $1.54 to $1.58[37] - Non-GAAP operating margin for Q3 2024 and FY 2025 is 27.0%[39] Cash Flow and Liquidity - Box's cash and cash equivalents increased to $449.5 million as of April 30, 2024, compared to $383.7 million as of January 31, 2024[27] - Net cash provided by operating activities was $131.2 million in April 2024, up from $124.9 million in April 2023[32] - Cash, cash equivalents, and restricted cash increased to $450.4 million at the end of April 2024 from $384.3 million at the beginning of the period[32] Remaining Performance Obligations (RPO) and Billings - Remaining performance obligations (RPO) as of April 30, 2024 were $1.212 billion, up 3% YoY[3] - Box's remaining performance obligations (RPO) represent contracted revenue not yet recognized, consisting of deferred revenue and backlog[24] - Billings for April 2024 were $190.5 million, slightly down from $191.9 million in April 2023[36] - Box's billings reflect sales to new customers, subscription renewals, and expansion within existing customers, calculated by adding changes in deferred revenue and contract assets to revenue[22] Operating Expenses and Margins - Total operating expenses increased to $188.4 million in April 2024 from $181.9 million in April 2023[29] - GAAP operating margin for Q3 2024 is 6.0%, and 6.5% for FY 2025[39] - Stock-based compensation impact on operating margin is 20.5% for Q3 2024 and 20.0% for FY 2025[39] - Acquired intangible assets amortization impact on operating margin is 0.5% for both Q3 2024 and FY 2025[39] Stock-Based Compensation - Stock-based compensation expense totaled $51.2 million in April 2024, compared to $47.3 million in April 2023[30] - Stock-based compensation for Q3 2024 is $0.37 per share, and $1.45 per share for FY 2025[37] Net Income and Earnings Per Share - Net income attributable to common stockholders rose to $11.5 million in April 2024, compared to $3.7 million in April 2023[29] - Diluted GAAP net income per share for Q3 2024 is $0.06, with a range of $0.06 to $0.07[37] - Diluted GAAP net income per share for FY 2025 is $0.20, with a range of $0.20 to $0.24[37] Balance Sheet and Liabilities - Accounts receivable decreased to $143.1 million as of April 30, 2024, from $281.5 million as of January 31, 2024[27] - Deferred revenue decreased to $493.0 million as of April 30, 2024, from $562.9 million as of January 31, 2024[27] - Box's total liabilities decreased to $1.08 billion as of April 30, 2024, from $1.18 billion as of January 31, 2024[27] - Box's stockholders' deficit improved to $397.9 million as of April 30, 2024, from $431.1 million as of January 31, 2024[27] Product and Innovation - Box AI for Hubs introduced in public beta, enabling teams to unlock value from enterprise data[5] - Box Hubs public beta launched, offering a new intelligent portal solution for content curation and publishing[5] Foreign Exchange (FX) Impact - FX headwinds expected to impact full-year FY25 revenue growth by 250 basis points and operating margin by 160 basis points[6] Non-GAAP Definitions - Box defines non-GAAP gross profit as GAAP gross profit excluding stock-based compensation, intangible assets amortization, and other special items[19] - Box defines non-GAAP operating income as operating income excluding stock-based compensation, intangible assets amortization, and other special items[20] - Box defines non-GAAP net income attributable to common stockholders as GAAP net income excluding stock-based compensation, intangible assets amortization, and other special items[21]

Group 1: Stock Splits Overview - Stock splits have gained popularity, particularly in the retail sector, with notable companies like Nvidia, Amazon, and Tesla having completed splits recently [1] - A stock split increases the number of outstanding shares while proportionally decreasing the stock price, leaving the overall market capitalization unchanged [2] - Stock splits are often initiated when a company's share price has risen significantly, making shares less accessible to average investors [2][3] Group 2: Costco's Potential for a Stock Split - Costco has not had a stock split since 2000, and its shares have increased nearly 600% over the last decade, currently priced around $795 [4][6] - The company is viewed as a strong candidate for a stock split due to its high share price and significant returns [6] - Costco's P/E ratio of 52 is the highest among its peers, indicating a premium valuation, yet it remains a compelling investment opportunity [10] Group 3: Market Position and Investment Outlook - Despite challenges from e-commerce, Costco's business model focuses on essential consumer goods, positioning it well in various economic conditions [10] - The company is expected to perform well even amid inflation and high borrowing costs, reinforcing its status as a leading retailer [10][11] - Investors are encouraged to consider purchasing Costco shares now rather than waiting for a potential stock split, as the company's fundamentals remain strong [11]

Active ETF flexibility offers investors some major advantages. That said, active funds often stick to certain style boxes. Investment style boxes, like value to growth, large or small caps, can offer simple heuristics to understand a strategy. At the same time, those style boxes come with strong arguments for or against, as with value.See more: Is Adding Interest Rate Risk Worth It?Those boxes, however, can constrain an active ETF’s inherent flexibility. Limiting one of active strategies’ strong advantages ...

your_photo Summary Following my coverage of Box, Inc. (NYSE:BOX) in October 2023, for which I recommended a hold rating as the upside potential was not attractive, this post is to provide an update on my thoughts on the business and stock. Performance wise, the stock was pretty much flattish since my update, but has surged since the 4Q24 results. Post the 4Q24 performance, I have turned bullish on the stock as leading growth operating metrics point to a turn around in growth pace, and two key developmen ...

Box (BOX) is benefiting from solid customer momentum on the back of its portfolio strength, which has been the key growth driver for the company. BOX shares have gained 13.7% on a year-to-date basis.The latest selection of Box by the Administrative Office of the U.S. Courts (“AOUSC”) to power secure cloud content management and collaboration for the Defender Services Office (“DSO”) testifies to the aforesaid fact.DSO, which supports Federal Public Defender Organizations and Criminal Justice Act panel attorn ...

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Box, Inc. (NYSE: BOX), the leading Content Cloud, today announced that the Administrative Office of the U.S. Courts (AOUSC) has selected Box to power secure cloud content management and collaboration for the Defender Services Office (DSO). With Box, DSO is able to securely share content internally as well as externally with investigators, Federal Public Defenders, and U.S. District Courts. DSO supports Federal Public Defender Organizations and Criminal Justice Act p ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-36805 Box, Inc. (Exact name of registrant as specified in its Charter) Delaware 20-2714444 (State or other jurisdiction of (I.R.S. Emp ...

Core Insights - Box, Inc. reported fourth-quarter fiscal 2024 non-GAAP earnings per share of 42 cents, exceeding the Zacks Consensus Estimate by 10.5% and reflecting a year-over-year increase of 13.5% [1] - Total revenues reached $262.88 million, slightly below the consensus mark of $262.92 million, but showed a 2% year-over-year growth (4% growth on a constant currency basis) [1] - The company's go-to-market strategy and the adoption of multi-product offerings contributed positively to revenue growth, alongside strong performance in the Content Cloud platform and Enterprise Plus Suites [1] Quarter in Detail - Billings for the quarter were $379.3 million, marking a 6% year-over-year increase (10% growth on a constant currency basis) [2] - Deferred revenues stood at $586.9 million, up 4% from the prior fiscal year (7% growth on a constant currency basis) [2] - Box achieved an 81% attach rate for its Suites, an increase of 900 basis points year-over-year [2] - The net retention rate was 101%, down 700 basis points year-over-year due to macroeconomic challenges [2] - Remaining performance obligations as of January 31, 2024, were $1.305 billion, reflecting a 5% year-over-year increase (9% growth on a constant currency basis) [2] Operating Results - Non-GAAP gross margin was 78.4%, a contraction of 10 basis points from the same quarter last year [3] - Operating expenses totaled $178.99 million, up 1.8% year-over-year, with a contraction of 40 basis points in relation to revenues, bringing the percentage to 68.1% [3] - The non-GAAP operating margin was 26.7%, expanding 70 basis points from the prior-year quarter [3] Balance Sheet & Cash Flow - As of January 31, 2024, cash and cash equivalents were $383.7 million, an increase from $377.9 million as of October 31, 2023 [4] - Short-term investments rose to $96.9 million from $61.8 million in the previous fiscal quarter [4] - Accounts receivables increased to $281.5 million from $166.9 million at the end of the prior fiscal quarter [4] - Non-current debt was $370.8 million, slightly up from $370.3 million in the previous quarter [4] - Cash generated from operations was $89.3 million, up from $71.8 million in the previous fiscal quarter [4] - Free cash flow for the quarter was $81.3 million [5] Guidance - For the first quarter of fiscal 2025, Box expects revenues between $261 million and $263 million, indicating a potential 4% rise at the high end from the prior fiscal year's figure [5] - Non-GAAP earnings per share guidance is set between 35-36 cents, accounting for an expected foreign exchange headwind of 4 cents [5] - The non-GAAP operating margin for the first quarter is projected to be 25% [5] - For fiscal 2025, revenue is expected to be in the range of $1.08-$1.085 billion, suggesting a 5% increase from the last fiscal year's high end [6] - Non-GAAP earnings per share for the full fiscal year is anticipated to be between $1.53-$1.57, including a foreign exchange headwind of 10 cents [6] - The non-GAAP operating margin for the full fiscal year is expected to be 27% [6]