Box(US:BOX)2024-03-04 16:00Revenue Performance - Fourth quarter revenue was $263 million, a 2% increase from $256.5 million in the same quarter last year, or 4% growth on a constant currency basis [4]. - Fiscal 2024 revenue reached $1.04 billion, a 5% increase from $0.991 billion in fiscal 2023, or 7% growth on a constant currency basis [9]. - Total revenue for the three months ended January 31, 2024, was $262,878,000, a 2% increase from $256,476,000 in the same period of 2023 [44]. - Revenue is expected to be in the range of $1.08 billion to $1.085 billion, representing a 5% year-over-year increase at the high end of the range, or 6% growth on a constant currency basis [24]. - For Q1 FY25, revenue is expected to be in the range of $261 million to $263 million, representing a 4% year-over-year increase at the high end of the range [17]. Profitability Metrics - Fourth quarter GAAP operating margin was 8%, while non-GAAP operating margin was 26.7%, both exceeding guidance [1]. - Fiscal 2024 GAAP net income per share was $0.67, and non-GAAP net income per share was $1.46, both exceeding guidance [1]. - GAAP net income attributable to common stockholders for the three months ended January 31, 2024, was $84,082 thousand, significantly higher than $14,370 thousand in the same period last year [52]. - Non-GAAP net income attributable to common stockholders for the fiscal year ended January 31, 2024, reached $216,673 thousand, compared to $180,406 thousand in 2023, reflecting a growth of 20.1% [52]. - GAAP operating margin is projected to be approximately 7%, while non-GAAP operating margin is expected to be around 27% [24]. Cash Flow and Financial Position - Non-GAAP free cash flow in the fourth quarter was $81.8 million, a 10% increase from $74.7 million in the same quarter last year [9]. - The company reported a net cash provided by operating activities of $89,339,000 for the three months ended January 31, 2024, compared to $92,187,000 in the same period of 2023 [47]. - Cash and cash equivalents as of January 31, 2024, were $383,742,000, down from $428,465,000 a year earlier, indicating a decrease of 10.5% [44]. - Total current assets increased to $842,180,000 as of January 31, 2024, compared to $806,763,000 in 2023, reflecting a growth of 4.4% [44]. - The company’s total stockholders' deficit improved to $(431,062,000) as of January 31, 2024, from $(523,851,000) in 2023, showing a reduction of 17.6% [44]. Performance Obligations and Billings - Remaining performance obligations (RPO) as of January 31, 2024, were $1.305 billion, a 5% increase from $1.245 billion a year earlier, or 9% growth on a constant currency basis [4]. - Box considers billings a significant performance measure, reflecting sales to new customers, subscription renewals, and expansions within existing customers [35]. - Billings for the three months ended January 31, 2024, were $379,278 thousand, an increase from $357,095 thousand in the same period of 2023, representing a growth of 6.2% [52]. - Remaining performance obligations (RPO) represent contracted revenue not yet recognized, consisting of deferred revenue and backlog, and are monitored as a leading indicator of future revenue [36]. - Deferred revenue at the end of the period for January 31, 2024, was $586,871 thousand, up from $566,630 thousand at the end of January 31, 2023 [52]. Stock Repurchase and Compensation - The company announced a new $100 million expansion of its stock repurchase program [12]. - The company incurred total stock-based compensation expenses of $47,266,000 for the three months ended January 31, 2024, compared to $44,984,000 in the same period of 2023, an increase of 5.1% [44]. - Stock-based compensation for the fiscal year ended January 31, 2024, was $198,783 thousand, compared to $185,632 thousand in 2023, showing an increase of 7.3% [52]. Future Outlook - The company expects fiscal year 2025 revenue to be impacted by a 170 basis point headwind from foreign exchange rates [13]. - GAAP net income per share attributable to common stockholders is anticipated to be between $0.22 and $0.26, with a negative impact of $0.10 from unfavorable exchange rates and $0.06 from deferred tax expenses [24]. - Non-GAAP diluted net income per share is expected to range from $1.53 to $1.57, also reflecting a negative impact of $0.10 from unfavorable exchange rates and $0.06 from deferred tax expenses [24]. - The company expects GAAP net income per share for the three months ending April 30, 2024, to be in the range of $0.04 to $0.05 [54]. - Non-GAAP operating margin guidance for the fiscal year ending January 31, 2025, is projected to be 27.0% [56]. Product Development and Strategic Focus - Box AI is now generally available to customers on Enterprise Plus plans, integrating advanced AI models into the Box Content Cloud [10]. - Box is focused on enhancing its platform and services, with ongoing investments in product development and strategic partnerships to drive growth [24]. - Box's management believes non-GAAP financial measures provide meaningful supplemental information regarding performance by excluding certain expenses not indicative of core business results [29].