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Box(BOX) - 2026 Q1 - Quarterly Results
BOXBox(BOX)2025-05-27 20:05

Revenue and Financial Performance - Revenue of 276million,up4276 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 264,658,000forthesameperiodin2024[41]−GAAPrevenueforthethreemonthsendedApril30,2025,was264,658,000 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 264,658in2024[49]−FullyearFY26revenueguidanceexpectedtobeintherangeof264,658 in 2024[49] - Full year FY26 revenue guidance expected to be in the range of 1.165 billion to 1.170billion,up71.170 billion, up 7% year-over-year[17] - Q2 FY26 revenue guidance expected to be in the range of 290 million to 291million,up8291 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 0.39intheprioryear[7]−GAAPdilutedearningspershare(EPS)of0.39 in the prior year[7] - GAAP diluted earnings per share (EPS) of 0.02, compared to 0.08intheprioryear[7]−Non−GAAPnetincomeattributabletocommonstockholdersforthethreemonthsendedApril30,2025,was0.08 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 58,400in2024[46]−Netincomeattributabletocommonstockholderswas58,400 in 2024[46] - Net income attributable to common stockholders was 3,515,000, a decrease of 69% from 11,513,000intheprioryear[41]−NetincomeforthethreemonthsendedApril30,2025,was11,513,000 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 17,222inthesameperiodof2024[44]CashFlowandLiquidity−Box′scashandcashequivalentsincreasedto17,222 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 624,575,000attheendofJanuary2025[38]−Cash,cashequivalents,andrestrictedcashattheendoftheperiodincreasedto624,575,000 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 450,385attheendofthesameperiodin2024[44]−Non−GAAPfreecashflowforthethreemonthsendedApril30,2025,was450,385 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 123,244in2024,reflectingadecreaseof4.8123,244 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,primarilydrivenbyhigherresearchanddevelopmentandsalesandmarketingexpenses[41]−Stock−basedcompensationexpensetotaled188,399,000, 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 51,162,000inthesameperiodlastyear[41]MarketPositionandInnovations−BoxcontinuestofocusonexpandingitsmarketpresenceandenhancingitsplatformcapabilitiesthroughenterpriseAIandcontentmanagementsolutions[35]−NewAIinnovationsintroduced,includingAIAgentsforenhanceddecision−makingandproductivity[3]PerformanceObligationsandBillings−Remainingperformanceobligations(RPO)of51,162,000 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 242.3million,up27242.3 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 513,572inthepreviousyear[49]ShareRepurchase−Boxrepurchasedapproximately1.6millionsharesforapproximately513,572 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 49,659ofcommonstockduringthethreemonthsendedApril30,2025,comparedto49,659 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 0.16and0.16 and 0.20[51] - Non-GAAP operating margin for the fiscal year ending January 31, 2026, is projected to be 28.0%[53]