Box has seen it all through its 20 years, and CEO @levie has been there the whole time. From the challenges of being a scrappy newcomer, fending off competitors, and retaining relevance are just the start of the stories he'll be sharing at this year's Disrupt.Plus, you should expect to hear more about their recently-announced agentic AI efforts, so don't miss your chance to attend: https://t.co/BNWF7oOWIZ ...

Core Insights - Box is continuing to innovate and enhance its product strategy since the last comprehensive briefing in March [1] - The leadership team, including CEO Aaron Levie and other key executives, will present new product announcements and discuss the intelligent content management strategy [2][3] Product Announcements - The presentation will cover exciting new product announcements and a deeper dive into the intelligent content management strategy [2][3] - A live Q&A session will follow the presentation, allowing for direct engagement with the audience [3] Financial Information - No financial updates will be provided during this presentation, and financial questions will not be addressed in the Q&A [4]

Group 1 - UBS reiterated its Buy rating and $42 price target on Box, Inc. following the company's BoxWorks event in San Francisco, where new generative AI products were unveiled [1] - The company introduced several new AI products including Box AI Search Agent, Research Agent, Extract, Automate, and enhancements to Box AI Studio, along with Box Shield Pro as an add-on product [1] - Most of the AI suite was bundled into the Enterprise Advanced package, which opens additional monetization opportunities for the company [1] Group 2 - Feedback on the AI portfolio was mixed, with some partners actively promoting the Enterprise Advanced package while several customers indicated they were holding off on upgrades due to budget constraints [2] - The SKU for the Enterprise Advanced package had been available for less than a year, making it too early to see meaningful impact on results [2]

Core Point - Jack in the Box is promoting its Smashed Jack burger with a special offer during Burger Week, allowing customers to purchase the burger for $5 each day from September 12 to 18, totaling $35 for seven burgers [1] Company Summary - The Smashed Jack burger, which debuted in 2024, has been recognized as the "Best Burger in Fast Food" [1] - The promotion is available both in-store and through the Jack App, emphasizing the company's focus on accessibility and customer engagement [1]

AI & Unstructured Data Management - Box is focused on helping companies manage their unstructured data, which accounts for approximately 90% of enterprise data, including financial documents, contracts, and research materials [2] - The company is introducing new capabilities with agents to enable users to tap into unstructured data and automate workflows [3] - Box is launching a new workflow automation capability called Box Automate, allowing users to design end-to-end business processes and integrate agents at various steps [3] - These capabilities can be applied to various industries, such as client onboarding in banking, contract review in law firms, and healthcare data management [4] Competitive Advantage & Market Position - Box's approach of integrating AI into existing data and security infrastructure leads to higher success rates compared to companies building their own AI technology [6][7] - The company emphasizes adapting to the changing software landscape and continuously innovating to maintain its market position [11][12][13] Revenue & Growth Strategy - Box introduced a new plan called Enterprise Advanced, which includes advanced AI capabilities and workflow automation, driving revenue growth [9] - The Enterprise Advanced plan is designed to facilitate customer upgrades and seamless adoption of advanced capabilities [9] - The company's recent financial performance, exceeding guidance and consensus, is attributed to the momentum of Enterprise Advanced [10] - Box is a $1 billion revenue per year company [8]

Core Insights - The company is focused on helping organizations manage unstructured data, which constitutes approximately 90% of enterprise data, including financial documents, contracts, and research materials [2][3] - A new workflow automation capability called Box Automate has been announced, allowing businesses to design end-to-end processes and integrate agents for automation in unstructured workflows [3][4] - The introduction of the Enterprise Advanced plan includes advanced AI capabilities and workflow features, which is expected to drive revenue growth and improve customer engagement [9][10] Industry Trends - There is a notable difference in success rates for companies that collaborate with software vendors versus those that attempt to build their own technology, with the former showing higher success [6][7] - The MIT report highlighted varying success and failure rates in AI implementations, suggesting that CIOs should consider these insights when deploying AI solutions [5][7] - The competitive landscape in the software industry is shifting, with companies needing to adapt quickly to maintain their positions, as emphasized by the historical context of disruption in the tech sector [11][13]

Box (NYSE:BOX) Investor Product Briefing Summary Company Overview - **Company**: Box, Inc. - **Event**: BoxWorks 2025 Investor Product Briefing - **Date**: September 11, 2025 Key Industry Insights - **AI Integration**: Box is focusing on integrating AI throughout the content lifecycle, emphasizing the importance of unstructured data management and automation in enterprise settings [2][11][33] - **Market Trends**: There is a growing demand for AI solutions across various sectors, particularly in public sector, financial services, and life sciences, where compliance and security are critical [47] Core Product Announcements - **AI Agents**: Introduction of AI agents designed to enhance productivity by automating workflows and managing unstructured data [4][11][16] - **Box Automate**: A new workflow automation tool that allows users to create custom workflows using AI agents without requiring coding skills [25][30] - **Box Extract**: Enhanced data extraction capabilities that significantly improve the volume of data processed, with examples showing a 60 times increase in insights from complex documents [23][24] Product Features and Enhancements - **Content Management**: Box's platform is designed to securely connect content to AI, integrating with various applications like Salesforce and Microsoft Teams [9][10] - **Security Enhancements**: Introduction of Box Shield Pro, which includes advanced security features to protect sensitive data and improve compliance [34][35] - **Classification Agent**: A new AI-driven tool that classifies documents based on context rather than just keywords, improving data security and management [39][41] Customer Use Cases - **Valmark Financial**: Successfully extracted over 250,000 data points from insurance policies, showcasing the efficiency of Box Extract [23] - **Loan Processing**: Demonstrated how Box Automate can streamline loan application reviews, allowing teams to focus on decision-making rather than paperwork [30][31] - **Innatec**: Utilized the classification agent to enhance security by automatically labeling sensitive documents, demonstrating the practical application of AI in content management [38][41] Strategic Focus - **Enterprise Advanced Plan**: Box is doubling down on its Enterprise Advanced plan, which includes new AI capabilities and aims to increase customer adoption and satisfaction [44][52] - **Market Expansion**: The integration of AI is expected to open new market opportunities, allowing Box to serve smaller companies that previously lacked the resources for complex document management systems [70][72] Financial Outlook - **Revenue Growth**: Box anticipates a 20% to 40% uplift in pricing for the Enterprise Advanced plan, reflecting the added value of new features and capabilities [52] - **Customer ROI**: Companies are finding significant ROI potential through the use of Box AI, with many reporting efficiency gains and cost savings [56] Conclusion - Box is positioning itself as a leader in AI-driven content management solutions, focusing on enhancing productivity, security, and compliance for enterprises. The integration of AI agents and automation tools is expected to drive significant growth and customer satisfaction in the coming years [45][56]

Group 1 - Box has been public for almost 10 years and is experiencing excitement around its newer AI capabilities resonating with customers [2][3] - The recent quarter showed strong financial results driven by the adoption of Enterprise Plus and the newly launched Enterprise Advanced plan [3] - Initial adoption of the new plans has contributed to outperformance in various top line metrics, indicating positive customer reception and future growth potential [3]

Financial Data and Key Metrics Changes - The company reported strong financial results driven by the adoption of new AI capabilities, which positively impacted various top-line metrics [4][28] - The net retention rate increased by one point quarter on quarter, achieving year-end targets earlier than expected [28] Business Line Data and Key Metrics Changes - The Enterprise Advanced plan launched in January has shown early momentum, contributing to improved price per seat and overall growth [28] - The company is seeing a significant increase in use cases, particularly in loan origination and document processing, which are driving customer satisfaction and operational efficiency [56][61] Market Data and Key Metrics Changes - The macroeconomic environment is described as relatively stable, with customers continuing to make purchasing decisions despite a cautious outlook [7][8] - There is a noted shift in customer engagement, with many moving from skepticism to actively trying and implementing AI solutions [53] Company Strategy and Development Direction - The company is positioning itself as an AI-first organization, focusing on integrating AI capabilities into its product offerings to enhance customer value [32][33] - The introduction of the MCP protocol is expected to facilitate better integration across platforms, allowing for more sophisticated and rapid deployments [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the importance of AI in driving new use cases and customer engagement [28][62] - The company is focused on leveraging AI to improve operational efficiencies and accelerate product development [50][51] Other Important Information - The company is committed to making AI certification mandatory for all employees to ensure a deep understanding of AI capabilities [47] - The upcoming BoxWorks conference is anticipated to showcase new features and capabilities related to the Enterprise Advanced plan [42] Q&A Session Summary Question: How is the AI revenue base evolving? - The company does not specifically track AI revenue as it considers itself an AI-first company, integrating AI capabilities across all plans [27] Question: What is driving seat growth? - Seat growth is primarily driven by expanding use cases and stabilizing churn rates, with a focus on adding back users rather than just stabilizing losses [30] Question: How does the company view the competitive landscape? - The company believes its focus on secure, compliant, and high-accuracy AI applications for unstructured data gives it a competitive edge [62] Question: What is the role of the new CRO? - The new CRO is expected to scale existing strategies and enhance customer engagement, leveraging his experience with enterprise customers [66] Question: How does the company plan to work with partners? - The company sees a significant opportunity to collaborate with partners, particularly in the context of AI, to help clients transform their content management practices [68]

Financial Performance - For the three months ended July 31, 2025, revenue was $294.0 million, representing a year-over-year growth of 9%[112] - Gross profit for the three months ended July 31, 2025, was $232.5 million, with a gross margin of 79.1%[112] - Operating income for the three months ended July 31, 2025, was $20.6 million, with an operating margin of 7.0%[112] - The company reported a net income of $13.445 million for the three months ended July 31, 2025, down from $20.496 million in 2024[145] - For the three months ended July 31, 2025, revenue increased by $23.96 million, or 9%, to $293.999 million compared to $270.039 million for the same period in 2024[147] - Non-GAAP free cash flow for the three months ended July 31, 2025, was $35.7 million, a 9% increase from $32.7 million for the same period in 2024[126] - Non-GAAP free cash flow for the six months ended July 31, 2025, was $154.057 million, slightly down from $155.979 million in 2024[127] Revenue and Customer Metrics - Remaining performance obligations (RPO) as of July 31, 2025, were $1.476 billion, a 16% increase from $1.272 billion as of July 31, 2024[118] - The increase in RPO was driven by expansion within existing customers and the addition of new customers[118] - The net retention rate was 103% as of July 31, 2025, compared to 102% in 2024, indicating strong customer retention despite some churn[129] - The increase in revenue was primarily driven by seat growth in existing customers and strong attach rates of multi-product Suites offerings[147] Expenses and Costs - Operating expenses for the three months ended July 31, 2025, totaled $211.899 million, up from $194.246 million in 2024, driven by increases in research and development and sales and marketing expenses[145] - Cost of revenue for the three months ended July 31, 2025, was $61.522 million, an increase of $6.009 million, or 11%, compared to $55.513 million in 2024[148] - Cost of revenue increased by $8.4 million, or 7%, for the six months ended July 31, 2025, primarily due to a $7.3 million rise in public cloud infrastructure costs[149] - Research and development expenses rose by $15.9 million, or 12%, for the six months ended July 31, 2025, driven by a $10.0 million increase in employee-related costs and a 14% increase in headcount[152] - Sales and marketing expenses increased by $13.4 million, or 7%, for the six months ended July 31, 2025, primarily due to a $5.2 million rise in employee-related costs driven by a 6% increase in headcount[155] - General and administrative expenses increased by $9.2 million, or 14%, for the six months ended July 31, 2025, mainly due to a $4.9 million rise in stock-based compensation expense[159] Cash Flow and Investments - Net cash provided by operating activities was $173.0 million for the six months ended July 31, 2025, an increase of $5.5 million compared to the previous year[169] - Net cash provided by operating activities increased by $5.5 million for the six months ended July 31, 2025, compared to the prior period, primarily due to a $13.2 million increase in adjustments to reconcile net income to net cash provided by operating activities[170] - Net cash used in investing activities increased by $34.6 million for the six months ended July 31, 2025, mainly due to a $27.3 million increase in maturities and sales of short-term investments[173] - Net cash used in financing activities decreased by $30.1 million for the six months ended July 31, 2025, primarily due to a $49.1 million decrease in repurchases of common stock[174] Foreign Currency Impact - Approximately one-third of the company's revenue is derived from contracts denominated in foreign currencies, impacting total assets and revenues due to exchange rate fluctuations[195] - For the six months ended July 31, 2025, revenue growth was positively impacted by approximately 70 basis points due to foreign currency fluctuations[196] - The company recognized $2.0 million in foreign currency exchange gains for the six months ended July 31, 2025, net of losses from foreign currency derivative contracts[198] Product Development and Authorizations - The company launched several new products, including Box AI Extract Agents and Box Doc Gen API, enhancing its content management capabilities[110] - The company achieved Federal Risk and Authorization Management Program (FedRAMP) High Authorization, allowing U.S. government agencies to leverage its platform for sensitive data[109] Debt and Interest - Interest income for the six months ended July 31, 2025, was $13.413 million, compared to $11.076 million in 2024[145] - Interest income increased by $2.3 million, or 21%, for the six months ended July 31, 2025, primarily due to higher cash and short-term investment balances[161] - Interest expense rose by $3.8 million, or 236%, for the six months ended July 31, 2025, mainly related to the Convertible Notes[163] - The company issued $460.0 million in 1.50% convertible senior notes due September 15, 2029, with a conversion price of approximately $43.46 per share[175] Workforce and Organizational Changes - The company conducted a workforce reorganization, resulting in charges of approximately $8.2 million for the six months ended July 31, 2025[114] - The company’s investments in product and customer success are expected to support continued growth in net retention rates above 100%[130]