Box, Inc. (NYSE:BOX) Q4 2024 Earnings Conference Call March 5, 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 Joshua Baer - Morgan Stanley Pinjalim Bora - JPMorgan Steven Enders - Citi John Messina - Raymond James Richard Hilliker - UBS Sebastien Naji - William Blair George Iwanyc - Oppenheimer Rishi Jaluria - RBC Capital Markets Op ...

Box Inc.’s stock rose about 2% after hours Tuesday after the software company reported its first $1 billion fiscal year and announced a $100 million share-buyback program. “Customers in financial services are upgrading to Box AI,” Box Chief Executive Aaron Levie said in an interview, referring to a new suite of capabilities that will integrate advanced AI models into the Box Content Cloud. The company also announced integration with Microsoft Corp.’s MSFT, -2.96% Azure OpenAI on Box AI. “AI and data and ...

Core Insights - Box reported revenue of $262.88 million for the quarter ended January 2024, reflecting a year-over-year increase of 2.5% [1] - Earnings per share (EPS) for the quarter was $0.42, up from $0.37 in the same quarter last year [1] - The revenue slightly missed the Zacks Consensus Estimate of $262.92 million by 0.02%, while the EPS exceeded the consensus estimate of $0.38 by 10.53% [1] Financial Metrics - Billings for the quarter were $379.28 million, surpassing the average estimate of $371.54 million from six analysts [2] - The billings growth rate was 6%, exceeding the five-analyst average estimate of 4.2% [2] - Remaining performance obligations (RPO) at period end were $1.31 billion, matching the two-analyst average estimate [2] Stock Performance - Box shares have returned +6.5% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2]

Box (BOX) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.53%. 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 $0.36, delivering a surprise of -5.26%.Over the last four quarters, the compa ...

Core Insights - Box, Inc. has announced a new integration with Microsoft Azure OpenAI Service to enhance its Box AI capabilities, providing advanced large language models to its customers [1][3] - Box AI is now generally available for customers on Enterprise Plus plans, allowing over 115,000 enterprises to leverage generative AI for improved content management and workflow efficiency [5][8] Integration and Collaboration - The collaboration with Microsoft, which spans over a decade, aims to bring AI to enterprises while ensuring data security, privacy, compliance, and governance [2][4] - Box AI is built on a platform-neutral framework, allowing it to connect with powerful AI models and meet strict compliance requirements across various industries [3] Use Cases and Applications - Financial services can utilize Box AI to extract insights from reports, aiding in market trend analysis and risk assessment [3] - Life Sciences organizations can expedite analysis of clinical trial data, enhancing understanding of trial outcomes [3] - Public sector agencies can derive insights from constituent feedback and policy research to inform decision-making [3] - Insurance companies can improve efficiency in claims processing through key information extraction [3] - Legal firms can streamline legal research by quickly identifying relevant information in complex texts [3] Customer Adoption and Feedback - Thousands of enterprises have adopted Box AI since its beta launch, using it to extract information, generate content, and derive insights [5] - Customers, such as nonprofit organizations, have highlighted the value of Box AI in enhancing their technology stack and maintaining business continuity during challenges like the pandemic [6] Microsoft 365 Integrations - Box has developed multiple integrations with Microsoft 365 and Teams to enhance productivity, including real-time collaboration on documents and streamlined sharing of Box content [7] Pricing and Availability - Box AI is included in all Enterprise Plus plans, offering individual users 20 queries per month, with an option for 2,000 additional queries at the company level [8]

Box, Inc. (BOX) is scheduled to report fourth-quarter fiscal 2024 results on Mar 5.For fourth-quarter fiscal 2024, Box expects revenues between $262 million and $264 million, suggesting a 3% rise at the high end of the range from the prior fiscal year’s reported figure. The constant currency growth rate is pegged at 5%. The Zacks Consensus Estimate for the same is pegged at $262.9 million, indicating 2.5% growth from the last fiscal year quarter’s reported value.Box anticipates non-GAAP earnings per share i ...

Revenue Performance - Fourth quarter revenue was $263 million, a 2% increase from $256.5 million in the same quarter last year, or 4% growth on a constant currency basis [4]. - Fiscal 2024 revenue reached $1.04 billion, a 5% increase from $0.991 billion in fiscal 2023, or 7% growth on a constant currency basis [9]. - Total revenue for the three months ended January 31, 2024, was $262,878,000, a 2% increase from $256,476,000 in the same period of 2023 [44]. - Revenue is expected to be in the range of $1.08 billion to $1.085 billion, representing a 5% year-over-year increase at the high end of the range, or 6% growth on a constant currency basis [24]. - For Q1 FY25, revenue is expected to be in the range of $261 million to $263 million, representing a 4% year-over-year increase at the high end of the range [17]. Profitability Metrics - Fourth quarter GAAP operating margin was 8%, while non-GAAP operating margin was 26.7%, both exceeding guidance [1]. - Fiscal 2024 GAAP net income per share was $0.67, and non-GAAP net income per share was $1.46, both exceeding guidance [1]. - GAAP net income attributable to common stockholders for the three months ended January 31, 2024, was $84,082 thousand, significantly higher than $14,370 thousand in the same period last year [52]. - Non-GAAP net income attributable to common stockholders for the fiscal year ended January 31, 2024, reached $216,673 thousand, compared to $180,406 thousand in 2023, reflecting a growth of 20.1% [52]. - GAAP operating margin is projected to be approximately 7%, while non-GAAP operating margin is expected to be around 27% [24]. Cash Flow and Financial Position - Non-GAAP free cash flow in the fourth quarter was $81.8 million, a 10% increase from $74.7 million in the same quarter last year [9]. - The company reported a net cash provided by operating activities of $89,339,000 for the three months ended January 31, 2024, compared to $92,187,000 in the same period of 2023 [47]. - Cash and cash equivalents as of January 31, 2024, were $383,742,000, down from $428,465,000 a year earlier, indicating a decrease of 10.5% [44]. - Total current assets increased to $842,180,000 as of January 31, 2024, compared to $806,763,000 in 2023, reflecting a growth of 4.4% [44]. - The company’s total stockholders' deficit improved to $(431,062,000) as of January 31, 2024, from $(523,851,000) in 2023, showing a reduction of 17.6% [44]. Performance Obligations and Billings - Remaining performance obligations (RPO) as of January 31, 2024, were $1.305 billion, a 5% increase from $1.245 billion a year earlier, or 9% growth on a constant currency basis [4]. - Box considers billings a significant performance measure, reflecting sales to new customers, subscription renewals, and expansions within existing customers [35]. - Billings for the three months ended January 31, 2024, were $379,278 thousand, an increase from $357,095 thousand in the same period of 2023, representing a growth of 6.2% [52]. - Remaining performance obligations (RPO) represent contracted revenue not yet recognized, consisting of deferred revenue and backlog, and are monitored as a leading indicator of future revenue [36]. - Deferred revenue at the end of the period for January 31, 2024, was $586,871 thousand, up from $566,630 thousand at the end of January 31, 2023 [52]. Stock Repurchase and Compensation - The company announced a new $100 million expansion of its stock repurchase program [12]. - The company incurred total stock-based compensation expenses of $47,266,000 for the three months ended January 31, 2024, compared to $44,984,000 in the same period of 2023, an increase of 5.1% [44]. - Stock-based compensation for the fiscal year ended January 31, 2024, was $198,783 thousand, compared to $185,632 thousand in 2023, showing an increase of 7.3% [52]. Future Outlook - The company expects fiscal year 2025 revenue to be impacted by a 170 basis point headwind from foreign exchange rates [13]. - GAAP net income per share attributable to common stockholders is anticipated to be between $0.22 and $0.26, with a negative impact of $0.10 from unfavorable exchange rates and $0.06 from deferred tax expenses [24]. - Non-GAAP diluted net income per share is expected to range from $1.53 to $1.57, also reflecting a negative impact of $0.10 from unfavorable exchange rates and $0.06 from deferred tax expenses [24]. - The company expects GAAP net income per share for the three months ending April 30, 2024, to be in the range of $0.04 to $0.05 [54]. - Non-GAAP operating margin guidance for the fiscal year ending January 31, 2025, is projected to be 27.0% [56]. Product Development and Strategic Focus - Box AI is now generally available to customers on Enterprise Plus plans, integrating advanced AI models into the Box Content Cloud [10]. - Box is focused on enhancing its platform and services, with ongoing investments in product development and strategic partnerships to drive growth [24]. - Box's management believes non-GAAP financial measures provide meaningful supplemental information regarding performance by excluding certain expenses not indicative of core business results [29].

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Box, Inc. (NYSE:BOX), the leading Content Cloud, today announced that it will host its FY25 Financial Analyst Day on Tuesday, March 19, 2024. Members of Box’s executive management team will host a presentation followed by Q&A beginning at 11:00 a.m. PT. Registration for this virtual event is available here. A live video webcast of the event will be accessible at www.box.com/investors. An archive of the webcast will be available for replay beginning approximately one ...

Core Insights - Box (BOX) is expected to report quarterly earnings of $0.38 per share, a 2.7% increase year-over-year, with revenues projected at $262.92 million, reflecting a 2.5% year-over-year growth [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' projections [1] - Analysts emphasize the importance of earnings projections revisions in predicting investor reactions and stock price movements [1] Financial Metrics - Analysts forecast 'Billings' to reach $371.54 million, up from $357.10 million a year ago [2] - The consensus estimate for 'Billings growth rate' is 4.2%, down from 6% in the previous year [2] - 'Remaining performance obligations (RPO)' are expected to reach $1.31 billion, compared to $1.25 billion a year ago [2] Stock Performance - Over the past month, Box shares have declined by 2.5%, while the Zacks S&P 500 composite has increased by 3.9% [3] - Box holds a Zacks Rank of 3 (Hold), suggesting its performance will likely align with the overall market in the near term [3]

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Box, Inc. (NYSE:BOX) today announced that members of its management team will present at the following conference: Morgan Stanley Technology, Media, & Telecom Conference Date and Time: March 6, 2024 at 1:20pm PT Location: The Palace Hotel, San Francisco This event will be webcast live at boxinvestorrelations.com, and the replay will be available approximately one hour after the live event. The Morgan Stanley conference replay will be available for a period of ninety ...