Box(US:BOX)2024-05-28 20:05Revenue and Growth - Revenue for Q1 FY25 was $264.7 million, up 5% YoY, or 8% growth on a constant currency basis[3] - Q2 FY25 revenue guidance is $268 million to $270 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 $1.08 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 $251.9 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, 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 $70.4 million in April 2024, up from $57.4 million in April 2023[34] - Non-GAAP net income attributable to common stockholders rose to $58.4 million in April 2024 from $47.5 million in April 2023[34] - Non-GAAP net income per share for Q3 2024 is $0.40, with a range of $0.40 to $0.41[37] - Non-GAAP net income per share for FY 2025 is $1.54, with a range of $1.54 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 $449.5 million as of April 30, 2024, compared to $383.7 million as of January 31, 2024[27] - Net cash provided by operating activities was $131.2 million in April 2024, up from $124.9 million in April 2023[32] - Cash, cash equivalents, and restricted cash increased to $450.4 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 $1.212 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 $191.9 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 $181.9 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 $47.3 million in April 2023[30] - Stock-based compensation for Q3 2024 is $0.37 per share, and $1.45 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 $3.7 million in April 2023[29] - Diluted GAAP net income per share for Q3 2024 is $0.06, with a range of $0.06 to $0.07[37] - Diluted GAAP net income per share for FY 2025 is $0.20, with a range of $0.20 to $0.24[37] Balance Sheet and Liabilities - Accounts receivable decreased to $143.1 million as of April 30, 2024, from $281.5 million as of January 31, 2024[27] - Deferred revenue decreased to $493.0 million as of April 30, 2024, from $562.9 million as of January 31, 2024[27] - Box's total liabilities decreased to $1.08 billion as of April 30, 2024, from $1.18 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]