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Box(BOX) - 2025 Q1 - Quarterly Results
BOXBox(BOX)2024-05-28 20:05

Revenue and Growth - Revenue for Q1 FY25 was 264.7million,up5264.7 million, up 5% YoY, or 8% growth on a constant currency basis[3] - Q2 FY25 revenue guidance is 268 million to 270million,up3270 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 1.08billion,up41.08 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 251.9millioninApril2023[29]Non−GAAPFinancialMetrics−Non−GAAPoperatingmarginforQ1FY25was26.6251.9 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,upfrom0.39, 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 70.4millioninApril2024,upfrom70.4 million in April 2024, up from 57.4 million in April 2023[34] - Non-GAAP net income attributable to common stockholders rose to 58.4millioninApril2024from58.4 million in April 2024 from 47.5 million in April 2023[34] - Non-GAAP net income per share for Q3 2024 is 0.40,witharangeof0.40, with a range of 0.40 to 0.41[37]−Non−GAAPnetincomepershareforFY2025is0.41[37] - Non-GAAP net income per share for FY 2025 is 1.54, with a range of 1.54to1.54 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 449.5millionasofApril30,2024,comparedto449.5 million as of April 30, 2024, compared to 383.7 million as of January 31, 2024[27] - Net cash provided by operating activities was 131.2millioninApril2024,upfrom131.2 million in April 2024, up from 124.9 million in April 2023[32] - Cash, cash equivalents, and restricted cash increased to 450.4millionattheendofApril2024from450.4 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 1.212billion,up31.212 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 191.9millioninApril2023[36]−Box′sbillingsreflectsalestonewcustomers,subscriptionrenewals,andexpansionwithinexistingcustomers,calculatedbyaddingchangesindeferredrevenueandcontractassetstorevenue[22]OperatingExpensesandMargins−Totaloperatingexpensesincreasedto191.9 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 181.9millioninApril2023[29]−GAAPoperatingmarginforQ32024is6.0181.9 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 47.3millioninApril2023[30]−Stock−basedcompensationforQ32024is47.3 million in April 2023[30] - Stock-based compensation for Q3 2024 is 0.37 per share, and 1.45pershareforFY2025[37]NetIncomeandEarningsPerShare−Netincomeattributabletocommonstockholdersroseto1.45 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 3.7millioninApril2023[29]−DilutedGAAPnetincomepershareforQ32024is3.7 million in April 2023[29] - Diluted GAAP net income per share for Q3 2024 is 0.06, with a range of 0.06to0.06 to 0.07[37] - Diluted GAAP net income per share for FY 2025 is 0.20,witharangeof0.20, with a range of 0.20 to 0.24[37]BalanceSheetandLiabilities−Accountsreceivabledecreasedto0.24[37] Balance Sheet and Liabilities - Accounts receivable decreased to 143.1 million as of April 30, 2024, from 281.5millionasofJanuary31,2024[27]−Deferredrevenuedecreasedto281.5 million as of January 31, 2024[27] - Deferred revenue decreased to 493.0 million as of April 30, 2024, from 562.9millionasofJanuary31,2024[27]−Box′stotalliabilitiesdecreasedto562.9 million as of January 31, 2024[27] - Box's total liabilities decreased to 1.08 billion as of April 30, 2024, from 1.18billionasofJanuary31,2024[27]−Box′sstockholders′deficitimprovedto1.18 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]