BOX Q4 Earnings Surpass Estimates, Revenues Increase Y/Y

Core Insights - Box, Inc. reported fourth-quarter fiscal 2024 non-GAAP earnings per share of 42 cents, exceeding the Zacks Consensus Estimate by 10.5% and reflecting a year-over-year increase of 13.5% [1] - Total revenues reached $262.88 million, slightly below the consensus mark of $262.92 million, but showed a 2% year-over-year growth (4% growth on a constant currency basis) [1] - The company's go-to-market strategy and the adoption of multi-product offerings contributed positively to revenue growth, alongside strong performance in the Content Cloud platform and Enterprise Plus Suites [1] Quarter in Detail - Billings for the quarter were $379.3 million, marking a 6% year-over-year increase (10% growth on a constant currency basis) [2] - Deferred revenues stood at $586.9 million, up 4% from the prior fiscal year (7% growth on a constant currency basis) [2] - Box achieved an 81% attach rate for its Suites, an increase of 900 basis points year-over-year [2] - The net retention rate was 101%, down 700 basis points year-over-year due to macroeconomic challenges [2] - Remaining performance obligations as of January 31, 2024, were $1.305 billion, reflecting a 5% year-over-year increase (9% growth on a constant currency basis) [2] Operating Results - Non-GAAP gross margin was 78.4%, a contraction of 10 basis points from the same quarter last year [3] - Operating expenses totaled $178.99 million, up 1.8% year-over-year, with a contraction of 40 basis points in relation to revenues, bringing the percentage to 68.1% [3] - The non-GAAP operating margin was 26.7%, expanding 70 basis points from the prior-year quarter [3] Balance Sheet & Cash Flow - As of January 31, 2024, cash and cash equivalents were $383.7 million, an increase from $377.9 million as of October 31, 2023 [4] - Short-term investments rose to $96.9 million from $61.8 million in the previous fiscal quarter [4] - Accounts receivables increased to $281.5 million from $166.9 million at the end of the prior fiscal quarter [4] - Non-current debt was $370.8 million, slightly up from $370.3 million in the previous quarter [4] - Cash generated from operations was $89.3 million, up from $71.8 million in the previous fiscal quarter [4] - Free cash flow for the quarter was $81.3 million [5] Guidance - For the first quarter of fiscal 2025, Box expects revenues between $261 million and $263 million, indicating a potential 4% rise at the high end from the prior fiscal year's figure [5] - Non-GAAP earnings per share guidance is set between 35-36 cents, accounting for an expected foreign exchange headwind of 4 cents [5] - The non-GAAP operating margin for the first quarter is projected to be 25% [5] - For fiscal 2025, revenue is expected to be in the range of $1.08-$1.085 billion, suggesting a 5% increase from the last fiscal year's high end [6] - Non-GAAP earnings per share for the full fiscal year is anticipated to be between $1.53-$1.57, including a foreign exchange headwind of 10 cents [6] - The non-GAAP operating margin for the full fiscal year is expected to be 27% [6]