Box(BOX) - 2021 Q1 - Quarterly Report

Revenue and Deferred Revenue - As of April 30, 2020, deferred revenue was $368.3 million, down from $423.8 million as of January 31, 2020[41] - For the three months ended April 30, 2020, revenue attributable to customers in the United States was 73%, compared to 76% for the same period in 2019[34] - Remaining performance obligations for subscription contracts as of April 30, 2020, totaled $722.7 million, with an expectation to recognize 65% of this amount as revenue over the next 12 months[42] - The company recognized $154.4 million of revenue from deferred revenue during the three months ended April 30, 2020, compared to $134.4 million for the same period in 2019[41] Financial Position - The company’s cash equivalents totaled $87.8 million as of April 30, 2020, compared to $63.6 million as of January 31, 2020[46] - As of April 30, 2020, Box, Inc. had total debt outstanding of $70.0 million, with a revolving credit facility increased to $100.0 million[73] - As of April 30, 2020, the company had cash, cash equivalents, and restricted cash totaling $268.4 million[176] - The total debt outstanding as of April 30, 2020, was $70.0 million, with a carrying amount that approximates fair value[177] Property and Equipment - As of April 30, 2020, total property and equipment, net was $192.025 million, an increase from $190.976 million as of January 31, 2020[51] - The company’s property and equipment located in the United States was approximately 95% as of April 30, 2020[35] - Depreciation expense for property and equipment was $16.4 million for the three months ended April 30, 2020, compared to $12.6 million for the same period in 2019, reflecting a year-over-year increase of 30.2%[52] - Operating lease right-of-use assets, net increased to $215.663 million as of April 30, 2020, from $197.806 million as of January 31, 2020[53] Lease Obligations - Total lease cost for the three months ended April 30, 2020, was $27.665 million, up from $21.203 million in the same period of 2019, representing a 30.5% increase[58] - Future payments under non-cancellable contractual purchases as of April 30, 2020, totaled $228.804 million, with the largest portion due in the fiscal year 2023 at $37.290 million[67] - The weighted-average remaining lease term for operating leases was 6.29 years as of April 30, 2020, down from 7.22 years in 2019[61] - The weighted-average discount rate for operating leases was 5.26% as of April 30, 2020, slightly down from 5.39% in 2019[61] Stock-Based Compensation - The total stock-based compensation expense recognized for the three months ended April 30, 2020, was $40.0 million, compared to $32.4 million for the same period in 2019, representing a year-over-year increase of approximately 23%[90] - The company had $4.3 million of unrecognized stock-based compensation expense related to outstanding stock options, expected to be recognized over a weighted-average period of 1.98 years[79] - As of April 30, 2020, there were 26,906,069 unvested restricted stock units, with $321.9 million of unrecognized stock-based compensation expense expected to be recognized over a weighted-average period of 2.89 years[83] - The weighted-average grant date fair value of options granted to employees during the three months ended April 30, 2020, was $5.41 per share, down from $8.00 per share in the same period of 2019[78] Net Loss and Earnings Per Share - The net loss for the three months ended April 30, 2020, was $25.55 million, compared to a net loss of $36.83 million for the same period in 2019, representing a 30.4% improvement[95] - The net loss per share for the three months ended April 30, 2020, was $(0.17), an improvement from $(0.25) for the same period in 2019[95] - The weighted-average number of shares outstanding for basic and diluted calculations was 151,943 thousand for the three months ended April 30, 2020, compared to 145,275 thousand for the same period in 2019[95] Compliance and Governance - The company has a single reporting segment and operates under a unified structure for resource allocation and financial performance evaluation[100] - The company had a maximum leverage ratio and minimum liquidity requirement under its credit facility, ensuring compliance with financial covenants[72] - The company has never declared or paid cash dividends and does not plan to do so in the foreseeable future, maintaining an expected dividend yield of 0%[94] Risk Management - The company entered into a Swap Agreement with a notional value of $30.0 million to hedge against interest rate risk as of April 30, 2020[178] - The net unrealized loss of the interest rate swap as of April 30, 2020, was $1.4 million, which is included in accrued expenses and other current liabilities[48] - The company has not entered into derivatives or hedging transactions for foreign currency exchange rates, as the exposure has not been material historically[180] Restructuring Charges - The company recorded a restructuring charge of $1.65 million in the quarter ended January 31, 2020, primarily for severance and personnel-related costs[99]