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]

Market Overview - The pause on EU tariffs significantly influenced market activity, with the Dow gaining +740 points (+1.78%), S&P 500 up +118 points (+2.05%), Nasdaq increasing by +461 points (+2.47%), and Russell 2000 rising +50 points (+2.48%) [1] Company News - Salesforce announced its intention to acquire Informatica for $8 billion, resulting in stock gains for both companies [2] - Box reported Q1 earnings of 30 cents per share, exceeding estimates by 5 cents, with revenues of $276 million surpassing the $274.4 million forecast, leading to an 11% increase in its stock [5] - Okta's Q1 earnings of 86 cents per share on $688 million in sales beat estimates but the stock fell by 10% due to lower full-year revenue guidance and concerns about the economic environment [5] Consumer Confidence - The May Consumer Confidence report showed a headline index of +98.0, up +12.3 points from April, with the Present Situation index at 135.9 (+4.8 points) and the Expectations Index at 72.8 (+17.4 points) [3] Investor Sentiment - 44% of investors believe the stock market will be higher in the next 12 months, indicating a positive sentiment shift since the tariff delays [4] Upcoming Earnings - Anticipation surrounds NVIDIA's Q1 earnings report, with shares up +3% and a 44% increase since April 4, as the "AI trade" gains momentum [6] - Earnings reports from Macy's and Salesforce are expected, along with the minutes from the recent Federal Open Market Committee meeting [7]

Group 1: Earnings Performance - Box reported quarterly earnings of $0.30 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, but down from $0.39 per share a year ago, representing an earnings surprise of 20% [1] - The company posted revenues of $276.27 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.67% and up from $264.66 million year-over-year [2] - Over the last four quarters, Box has consistently surpassed consensus EPS and revenue estimates [2] Group 2: Stock Performance and Outlook - Box shares have declined approximately 1.6% since the beginning of the year, compared to a decline of 1.3% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $283.88 million, and for the current fiscal year, it is $1.19 on revenues of $1.15 billion [7] - The estimate revisions trend for Box is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Group 3: Industry Context - The Internet - Software industry, to which Box belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Box's stock performance [5]

Financial Data and Key Metrics Changes - In Q1 FY 2026, revenue grew 4% year over year, or 5% in constant currency, reaching $276 million [8][24] - Remaining Performance Obligations (RPO) increased by 21% year over year to $1.5 billion [8][25] - Billings rose 27% year over year to $242 million, exceeding expectations [26] - Operating margin was 25.3%, down from 26.6% year over year, but adjusted for certain factors, it would have increased by 90 basis points [28] - Gross margin improved to 80.5%, up 30 basis points year over year [27] Business Line Data and Key Metrics Changes - Suite customers now represent 61% of total revenue, up from 56% a year ago, driven by strong demand for AI capabilities [25] - The company saw strong momentum in customer adoption of Enterprise Advanced, particularly in sectors like healthcare and financial services [9][19] Market Data and Key Metrics Changes - Approximately 65% of international revenue comes from Japan, indicating a strong market presence in that region [30] - The company is experiencing a shift in customer conversations towards AI-driven workflows, with over half of surveyed IT leaders expecting transformation from AI in the next two years [10][11] Company Strategy and Development Direction - The company is focused on building an intelligent content management platform that integrates AI capabilities to enhance enterprise workflows [12][20] - Partnerships with major AI providers like OpenAI and IBM are being leveraged to enhance product offerings and customer engagement [15][16] - The company aims to drive pricing improvements in the range of 20% to 40% for Enterprise Advanced deals [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong customer demand for Box AI, despite macroeconomic uncertainties [32] - The company anticipates a revenue range of $1.165 billion to $1.170 billion for FY 2026, reflecting a 7% year-over-year growth [33] - Management remains prudent in their outlook, considering potential impacts on IT spending due to the macroeconomic environment [32] Other Important Information - The company received FedRAMP high authorization, allowing U.S. government agencies to utilize its platform for sensitive data [19] - The first state of AI in the enterprise survey indicated that nearly 90% of IT leaders are already using AI agents in some capacity [10] Q&A Session Summary Question: Demand picture and guidance prudence - Management noted healthy customer conversations and strong momentum heading into Q2, while remaining prudent due to the dynamic macro environment [42][43] Question: Billings and RPO growth vs. revenue guidance - Management explained that the strong billings growth was influenced by early renewals, which would impact Q2 [44][45] Question: Seat growth trends - Management indicated that pricing improvements are driving growth more than seat expansion, with a focus on Enterprise Advanced [50][52] Question: Early renewals and AI adoption - Management highlighted that early renewals were primarily driven by customers adopting AI capabilities, with expectations for continued higher volumes [56][57] Question: AI cost and margin impact - Management expressed optimism about the decreasing costs of AI inference and its potential to remain margin neutral [60][63] Question: Customer migration from legacy ECM providers - Management reported an uptick in customers migrating to modern platforms, aided by partnerships with system integrators [69][70] Question: Platform revenue and AI unit consumption - Management acknowledged early traction in AI unit consumption, with a focus on data extraction use cases across various industries [82][83]

Financial Data and Key Metrics Changes - In Q1 FY 2026, revenue grew by 4% year over year, or 5% in constant currency, reaching $276 million [7][24] - Remaining Performance Obligations (RPO) increased by 21% year over year to $1.5 billion [7][25] - Billings rose by 27% year over year to $242 million, exceeding expectations [26] - Operating margin was reported at 25.3%, slightly down from 26.6% year over year [28] - Earnings per share (EPS) was $0.30, exceeding guidance by $0.04 [28] Business Line Data and Key Metrics Changes - Suite customers now represent 61% of total revenue, up from 56% a year ago, driven by strong demand for AI capabilities [25] - The company saw strong momentum in customer adoption of Enterprise Advanced, particularly in Q1 [7][17] Market Data and Key Metrics Changes - The company reported a net retention rate of 102%, up from 101% year over year [26] - The annualized full churn rate remained at 3%, indicating continued customer stickiness [26] Company Strategy and Development Direction - The company is focused on building an intelligent content management platform that integrates AI capabilities to enhance enterprise workflows [12][20] - Partnerships with major AI providers like OpenAI and IBM are being leveraged to enhance product offerings and customer engagement [15][70] - The company aims to drive pricing improvements in the range of 20% to 40% for Enterprise Advanced deals [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about customer demand for AI-driven solutions, noting robust conversations with clients [42] - Despite strong Q1 results, management remains cautious about macroeconomic uncertainties impacting IT spending [32] - The company expects revenue growth of approximately 7% year over year for FY 2026, with guidance adjusted to $1.165 billion to $1.170 billion [32][36] Other Important Information - The company received FedRAMP high authorization, allowing U.S. government agencies to utilize its platform for sensitive data [19] - The company is committed to a disciplined capital allocation strategy, including ongoing stock repurchase programs [29] Q&A Session Summary Question: Demand picture and guidance prudence - Management reported healthy customer conversations and strong momentum heading into Q2, while remaining prudent due to the macro environment [41][43] Question: Billings and RPO growth vs. revenue guidance - The difference in growth rates is attributed to timing, with early renewals impacting Q1 results [45][46] Question: Seat growth and down-sell trends - Seat growth is occurring, but pricing increases are the primary driver of revenue expansion [50][51] Question: Early renewals and their impact - Early renewals were driven by customers adopting AI capabilities, with expectations for continued but moderated early renewals [58][86] Question: AI adoption and customer engagement - The company is seeing a mix of early adopters and broader deployments of AI capabilities across various industries [61][82] Question: Integration with AI partners and monetization - The company aims to provide seamless integration with various AI platforms while monetizing through user seats and AI unit volume [90][98]

Revenue and Financial Performance - Revenue of $276 million, up 4% year-over-year, and up 5% in constant currency[2] - Box reported revenue of $276,272,000 for the three months ended April 30, 2025, an increase of 4% compared to $264,658,000 for the same period in 2024[41] - GAAP revenue for the three months ended April 30, 2025, was $276,272, representing a 4.8% increase from $264,658 in 2024[49] - Full year FY26 revenue guidance expected to be in the range of $1.165 billion to $1.170 billion, up 7% year-over-year[17] - Q2 FY26 revenue guidance expected to be in the range of $290 million to $291 million, up 8% year-over-year[12] Profitability Metrics - GAAP operating margin of 2.3% and non-GAAP operating margin of 25.3%[2] - Non-GAAP diluted EPS of $0.30, compared to $0.39 in the prior year[7] - GAAP diluted earnings per share (EPS) of $0.02, compared to $0.08 in the prior year[7] - Non-GAAP net income attributable to common stockholders for the three months ended April 30, 2025, was $45,243, down 22.5% from $58,400 in 2024[46] - Net income attributable to common stockholders was $3,515,000, a decrease of 69% from $11,513,000 in the prior year[41] - Net income for the three months ended April 30, 2025, was $8,194, a decrease of 52.5% compared to $17,222 in the same period of 2024[44] Cash Flow and Liquidity - Box's cash and cash equivalents increased to $689,628,000 as of April 30, 2025, compared to $624,575,000 at the end of January 2025[38] - Cash, cash equivalents, and restricted cash at the end of the period increased to $691,279, up from $450,385 at the end of the same period in 2024[44] - Non-GAAP free cash flow for the three months ended April 30, 2025, was $118,337, compared to $123,244 in 2024, reflecting a decrease of 4.8%[46] - Non-GAAP free cash flow was not explicitly stated but is calculated as cash flows from operating activities less net capital expenditures, indicating liquidity and profitability[34] Expenses and Cost Management - Total operating expenses increased to $209,261,000, up from $188,399,000, primarily driven by higher research and development and sales and marketing expenses[41] - Stock-based compensation expense totaled $54,894,000 for the three months ended April 30, 2025, compared to $51,162,000 in the same period last year[41] Market Position and Innovations - Box continues to focus on expanding its market presence and enhancing its platform capabilities through enterprise AI and content management solutions[35] - New AI innovations introduced, including AI Agents for enhanced decision-making and productivity[3] Performance Obligations and Billings - Remaining performance obligations (RPO) of $1.469 billion, up 21% year-over-year, or 17% on a constant currency basis[7] - Remaining performance obligations (RPO) represent contracted revenue not yet recognized, which is a key indicator of future revenue growth[33] - Billings of $242.3 million, up 27%, or 17% on a constant currency basis[7] - Billings, which include sales to new customers and subscription renewals, are considered a significant performance measure for understanding sales activity[31] Deferred Revenue - Deferred revenue at the end of the period was $574,119, an increase from $513,572 in the previous year[49] Share Repurchase - Box repurchased approximately 1.6 million shares for approximately $50 million in Q1 FY26[9] - The company repurchased $49,659 of common stock during the three months ended April 30, 2025, compared to $32,134 in 2024[44] Future Guidance - The company provided guidance for GAAP net income per share attributable to common stockholders for the fiscal year ending January 31, 2026, to be between $0.16 and $0.20[51] - Non-GAAP operating margin for the fiscal year ending January 31, 2026, is projected to be 28.0%[53]

Core Insights - Plug Power Inc. has successfully launched its GenEco electrolyzer systems at The Green Box in the Netherlands, marking a significant step in supporting European customers [1][3] - The GenEco platform is designed for flexible deployment in various industrial applications, including refining, sustainable aviation fuel, and green ammonia production [2] - The site operates with advanced energy infrastructure, including a 6 MW public grid connection and a 10 kV network, primarily powered by on-site solar energy [4] Company Developments - The Green Box serves as a live demonstration site and innovation hub, enhancing Plug's presence in Europe and supporting ongoing commercial discussions [3][5] - Plug Power's electrolyzer opportunity pipeline exceeds $21 billion for 2025 and 2026, bolstered by supportive policy programs like the EU Green Deal and RePowerEU [5] - The company has deployed over 72,000 fuel cell systems and 275 fueling stations globally, establishing itself as a leader in hydrogen production [7] Industry Context - Plug Power is positioned as a first mover in the hydrogen economy, providing a fully integrated ecosystem that includes production, storage, delivery, and power generation [6] - The successful operation of the 5 MW GenEco system at The Green Box demonstrates the economic advantages of integrating hydrogen systems with local renewable energy sources [3][4] - Plug's hydrogen plants in Georgia, Tennessee, and Louisiana currently produce 40 tons of hydrogen per day, contributing to a reliable domestic supply [7]