Core Insights - Climb Channel Solutions has entered into a distribution agreement with Egnyte, enhancing its portfolio with a cloud-native platform for secure content collaboration [1][2] - This partnership aims to expand access to transformative technologies for partners and customers across the United States, catering to both SMB and enterprise environments [2][4] Company Overview - Climb Channel Solutions is a global specialty technology distributor focusing on various sectors including Security, Data Management, and Cloud solutions, emphasizing a data-driven approach to accelerate market entry for emerging technologies [5] - Egnyte is recognized for its intelligent content platform that integrates cloud content management, data security, and AI, serving over 22,000 customers across multiple industries [7] Partnership Details - The collaboration is designed to enhance Egnyte's Partner Program, which focuses on profitability, enablement, and simplicity, thereby supporting a broader network of solution partners [3] - Climb's extensive reseller network is expected to facilitate Egnyte's growth by providing agile supply chain support, technical assistance, and competitive pricing [3][4]

You should not rely on any forward-looking statements, and Box assumes no obligation, nor do we intend, to update them. All information in this presentation is as of May 27, 2025. This presentation contains non-GAAP financial measures and key metrics relating to the company's past and expected future performance. You can find the reconciliation of these measures to the nearest comparable GAAP financial measures in the appendix at the end of this presentation. The company has not reconciled certain of the no ...

Financial Data and Key Metrics Changes - Q1 revenue was $625 million, a decline of 1% year over year, with constant currency revenue declining 60 basis points to $628 million [19] - Total ARR was $2.552 billion, down 20 basis points year over year and flat on a constant currency basis [20] - Net income for Q1 was $207 million, up 5% year over year, with diluted EPS of $0.70, representing a 21% year over year increase [23] - Gross margin was 82.9%, down 170 basis points from the year ago period, while operating margin was 41.7%, ahead of guidance and up more than 500 basis points year over year [22] Business Line Data and Key Metrics Changes - The document workflow business, DocsZen, delivered solid double-digit growth year over year, while Sign faced a challenging competitive landscape [15] - FormSwift saw an expected decline in paying users, but operating income and free cash flow improved significantly year over year [15] - The core FSS business improved mission-critical features, leading to better-than-expected performance among self-serve teams despite reduced investment levels [12] Market Data and Key Metrics Changes - The company exited the quarter with 18.16 million paying users, down approximately 60,000 users sequentially, largely due to reduced investment in FormSwift [20] - Average revenue per paying user (ARPU) declined sequentially to $139.26 from $140.06 in the prior quarter [20] Company Strategy and Development Direction - The company is focused on scaling Dash and simplifying its core FSS business, with a major spring update enhancing the search experience across various media formats [5][6] - The strategic shift includes reducing marketing spend on FormSwift and optimizing the go-to-market engine for Dash [18][19] - The company aims to leverage profitability to reduce share count and drive growth in free cash flow per share [18] Management's Comments on Operating Environment and Future Outlook - The macro landscape remains fluid, but the company believes its subscription business and strong profitability position it well to navigate current market uncertainties [17] - Management expects paying users to decline by roughly 1.5% or 300,000 users throughout the year, with FormSwift representing about half of this decline [29] - The company is maintaining its constant currency revenue guidance for the year while raising its reported revenue guidance due to improved FX rates [27][28] Other Important Information - The company repurchased approximately 18 million shares, spending about $500 million, with $870 million remaining under its existing share repurchase authorization [26] - The company is raising its outlook for non-GAAP operating margin to 38% to 38.5% and unlevered free cash flow to be at or above $950 million [27] Q&A Session Summary Question: What is supporting better user levels? - Management noted progress in the core business, particularly in the Teams segment, with higher retention rates and improved onboarding processes leading to a 50% year-over-year increase in desktop activations [35][36] Question: Any changes in view on Dash's monetization potential? - Management expressed excitement about recent product releases and customer feedback, emphasizing the unique value proposition of Dash in organizing and sharing content across platforms [40][41] Question: What are the early adopters saying about Dash? - Early adopters appreciate the AI search capabilities and the unique features for organizing and sharing content, particularly in creative industries [46][47] Question: What is the outlook for the consumer side of the business? - Management has not seen major changes in consumer trends despite general macroeconomic concerns, indicating that Dropbox remains a mission-critical tool for many users [50][51] Question: Is the reduction in R&D spend sustainable? - Management indicated that the current R&D spend is largely sustainable, with a focus on optimizing the core business while also investing in higher growth opportunities like Dash [54][55] Question: What major integrations are coming for Dash? - Management highlighted the development of a self-serve version of Dash as a key focus, which is expected to unlock potential demand among existing and new customers [57][58]