Box(US:BOX)2025-03-04 21:05Revenue and Growth - Fourth quarter revenue reached $280 million, with fiscal 2025 revenue totaling $1.09 billion, reflecting a 5% year-over-year increase[1] - Revenue for the three months ended January 31, 2025, was $279.52 million, an increase of 6.3% from $262.88 million for the same period in 2024[37] - Fiscal year 2026 revenue guidance is projected between $1.155 billion and $1.160 billion, indicating a 6% year-over-year growth[15] Profitability Metrics - Non-GAAP operating income for the fourth quarter was $76.4 million, representing 27.3% of revenue, an increase from 26.7% in the prior year[3] - GAAP diluted earnings per share (EPS) for the fourth quarter was $1.12, compared to $0.57 in the previous year, influenced by a net tax benefit of $1.04[3] - Net income attributable to common stockholders for the three months ended January 31, 2025, was $168.07 million, representing a 100.0% increase from $84.08 million in the same period last year[37] - Basic net income per share attributable to common stockholders increased to $1.17 for the three months ended January 31, 2025, compared to $0.58 in 2024[37] - Non-GAAP net income per share attributable to common stockholders for the three months ended January 31, 2025, was $0.42, consistent with the same period in 2024[47] Cash Flow and Liquidity - The company reported a record non-GAAP free cash flow of $91.3 million for the fourth quarter, up 12% year-over-year[3] - Cash provided by operating activities for the three months ended January 31, 2025, was $102.17 million, compared to $89.34 million in the same period of 2024[40] - The company reported a net cash increase of $16.06 million for the three months ended January 31, 2025, compared to a $5.79 million increase in the same period last year[40] - GAAP net cash provided by operating activities for the fiscal year ended January 31, 2025, was $332.26 million, compared to $318.73 million in 2024, reflecting an increase of 4.2%[42] - Non-GAAP free cash flow for the fiscal year ended January 31, 2025, was $304.61 million, up from $268.97 million in 2024, representing a growth of 13.2%[42] Balance Sheet Highlights - Box's total assets increased to $1,667,520,000 as of January 31, 2025, up from $1,241,163,000 a year earlier, representing a growth of approximately 34.4%[34] - Cash and cash equivalents rose to $624,575,000, compared to $383,742,000 in the previous year, indicating a significant increase of about 62.7%[34] - Total current liabilities increased to $922,076,000 from $679,280,000, reflecting a rise of approximately 35.8%[34] - Deferred revenue grew to $588,379,000, up from $562,859,000, marking an increase of about 4.5%[34] - Box's accumulated deficit decreased to $962,143,000 from $1,206,764,000, showing an improvement of approximately 20.3%[34] Operating Performance - Total operating expenses for the fiscal year ended January 31, 2025, were $782.39 million, an increase of 7.7% from $726.38 million in 2024[37] - GAAP operating margin for the three months ended January 31, 2025, was 6.4%, down from 8.1% in the same period of 2024[42] - Non-GAAP operating margin for the fiscal year ended January 31, 2025, was 27.9%, an increase from 24.7% in 2024[42] Stock and Shareholder Returns - The company announced a new $150 million expansion of its stock repurchase program, with approximately $52 million remaining under the current plan[9] - Stock-based compensation expense for the fiscal year ended January 31, 2025, totaled $219.00 million, up from $198.78 million in 2024[37] Future Outlook - GAAP operating margin for fiscal year 2026 is expected to be approximately 7.5%, while non-GAAP operating margin is projected at around 28%[15] - The company expects GAAP net income per share attributable to common stockholders for the fiscal year ending January 31, 2026, to range from $0.10 to $0.14[47] Product and Market Developments - The launch of the Enterprise Advanced Suites plan has garnered significant market interest, integrating various capabilities of the Intelligent Content Management platform[8] - Box has expanded AI availability to customers on various plans and introduced Box AI Units to facilitate AI usage management[8] Performance Measures - Billings, which include sales to new customers and subscription renewals, are considered a significant performance measure for Box[28] - Remaining performance obligations (RPO) indicate contracted revenue not yet recognized, which is crucial for future revenue projections[29] - Box's non-GAAP free cash flow is defined as cash flows from operating activities less net capital expenditures, providing insights into cash generation capabilities[30] - Non-GAAP gross profit and margin metrics are utilized to provide insights into Box's core business performance, excluding stock-based compensation and other special items[22]