Financial Performance - Revenue for Q2'26 reached $294 million[7], driven by Suites momentum[6] - Total Remaining Performance Obligations (RPO) increased by 16% year-over-year to $1476 million[9, 10] - Billings increased by 3% year-over-year[13] - Non-GAAP gross margin was 81.4% in Q2'26[17], a decrease of 20 bps year-over-year[16] - Non-GAAP operating margin was 28.6% in Q2'26[21], an increase of 20 bps year-over-year[20] Cash Flow and Capital Allocation - The company repurchased approximately 1.2 million shares of Class A common stock for approximately $40 million in Q2'26[26] - As of July 31, 2025, the company had approximately $112 million of remaining Board-approved buyback capacity under the current plan[26] Customer Metrics - Net retention rate was stable at 103%[33, 34] - Customers paying more than $100k annually grew by 8% year-over-year[39] - 63% of total revenue came from Suites[37] Guidance - Q3'26 revenue is projected to be $298 to $299 million, representing year-over-year growth of 8%[30] - Fiscal year 2026 revenue is projected to be $1.170 to $1.175 billion, representing year-over-year growth of 8%[30]

Financial Data and Key Metrics Changes - Box achieved revenue of $280 million in Q4 2025, up 6% year over year, or 8% in constant currency [10] - For fiscal 2025, revenue was $1.09 billion, up 5% year over year, and operating margin expanded by 320 basis points to 28% [11][37] - Q4 operating margin was 27.3%, and EPS was 42 cents, exceeding guidance by one cent [10][47] - Free cash flow for fiscal 2025 reached a record $305 million, up 13% year over year [37] Business Line Data and Key Metrics Changes - The launch of the Enterprise Advanced plan was a significant milestone, combining multiple products into a single offering [11][21] - The attach rate for suites in large deals was 87%, up from 81% a year ago, with suites now representing 60% of total revenue in Q4 [30][38] - The number of customers paying at least $100,000 annually increased by 8% year over year to approximately 1,920 [38] Market Data and Key Metrics Changes - Box's remaining performance obligations (RPO) grew by 12% year over year to $1.5 billion, indicating long-term customer commitment [40] - Q4 billings were $399 million, up 5% year over year, exceeding expectations despite a minor FX headwind [42] Company Strategy and Development Direction - The company is focusing on AI-driven solutions, emphasizing the importance of intelligent content management and automation [15][20] - Box plans to enhance its AI capabilities and expand its partner ecosystem to drive growth [58][59] - The company aims to leverage its intelligent content management platform to transform enterprise workflows [22][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic macro environment but expressed confidence in Box's ability to help customers drive efficiency and automation [78] - The net retention rate is expected to improve from 102% to 103% by the end of FY 2026, driven by pricing improvements and customer expansion [43][81] - Management highlighted the importance of AI in expanding the customer base and enhancing product offerings [120][122] Other Important Information - The company repurchased approximately 7.6 million shares for about $212 million in FY 2025, representing roughly 70% of free cash flow generation [48] - Box plans to provide more details on its roadmap and growth strategy during the upcoming financial analyst day on March 18th [34] Q&A Session Summary Question: Early momentum with Enterprise Advanced - Management was pleased with the results in Q4 for Enterprise Advanced, noting strong customer interest despite a short rollout period [66][68] Question: Macro environment impact on purchasing - Management acknowledged the dynamic macro environment but emphasized that Box's solutions are positioned to help customers drive efficiency [78] Question: Components of net retention rate - Management indicated that pricing improvements and stable churn rates are key drivers for expected net retention rate growth [81] Question: Core use cases for Enterprise Advanced - Management highlighted use cases such as AI-powered document processing and no-code app functionality as significant drivers of customer interest [92][94] Question: Go-to-market investments - Management discussed a methodical approach to go-to-market investments, focusing on key industries and system integrators [101][102] Question: Revenue seasonality and guidance - Management confirmed that Q1 revenue is expected to be lower due to a leap year impact but anticipates gradual acceleration in revenue growth throughout the year [116]