Revenue of $262 Million, up 5%
Year-Over-Year
Cash From Operations of $72 Million, up 3%
Year-Over-Year
Free Cash Flow of $58 Million, up 6%
Year-Over-Year
Box, Inc. (NYSE:BOX), the leading Content Cloud, today announced
preliminary financial results for the third quarter of fiscal year
2024, which ended October 31, 2023.
“We continue to execute on our Content Cloud strategy, creating
the only end-to-end platform that can help customers power their
complete content lifecycle in a single architecture,” said Aaron
Levie, co-founder and CEO of Box. “By demonstrating our product
leadership with Box AI and Box Hubs, we are delivering the platform
that customers need to meet the demands of the rapidly evolving era
of AI-powered work.”
“Our focus on delivering profitable growth drove operating
margin expansion and grew earnings per share 16% year-over-year,”
said Dylan Smith, co-founder and CFO of Box. “The successful
execution of our public cloud migration coupled with the savings
we’ve generated through our continued focus on cost discipline
enables us to invest in product innovation to drive durable,
long-term growth.”
Fiscal Third Quarter Financial Highlights
Box’s fiscal third quarter gross profit, operating income, and
earnings per share include a headwind against the company’s expense
forecast of $3.3 million from an anticipated decrease in proceeds
from the sale of certain data center equipment as the company
completes its migration to the public cloud (“equipment proceeds
headwind”).
- Revenue for the third quarter of fiscal year 2024 was $261.5
million, a 5% increase from revenue for the third quarter of fiscal
year 2023 of $250.0 million, or 7% growth on a constant currency
basis.
- Remaining performance obligations (“RPO”) as of October 31,
2023 were $1.131 billion, a 7% increase from RPO as of October 31,
2022 of $1.056 billion, or 8% growth on a constant currency
basis.
- Billings for the third quarter of fiscal year 2024 were $253.7
million, a 2% decrease, as reported and in constant currency, from
billings for the third quarter of fiscal year 2023 of $258.2
million.
- GAAP gross profit for the third quarter of fiscal year 2024 was
$192.3 million, or 73.5% of revenue. This compares to a GAAP gross
profit of $185.5 million, or 74.2% of revenue, in the third quarter
of fiscal year 2023. The equipment proceeds headwind represents an
impact of 130 basis points to GAAP gross margin.
- Non-GAAP gross profit for the third quarter of fiscal year 2024
was $199.6 million, or 76.3% of revenue. This represents 4% growth
from non-GAAP gross profit of $191.2 million, or 76.5% of revenue,
in the third quarter of fiscal year 2023. The equipment proceeds
headwind represents an impact of 130 basis points to non-GAAP gross
margin.
- GAAP operating income in the third quarter of fiscal year 2024
was $11.4 million, or 4.4% of revenue. This compares to a GAAP
operating income of $13.4 million, or 5.3% of revenue, in the third
quarter of fiscal year 2023. The equipment proceeds headwind
represents an impact of 130 basis points to GAAP operating
margin.
- Non-GAAP operating income in the third quarter of fiscal year
2024 was $64.6 million, or 24.7% of revenue. This represents 8%
growth from non-GAAP operating income of $60.0 million, or 24.0% of
revenue, in the third quarter of fiscal year 2023. The equipment
proceeds headwind represents an impact of 130 basis points to
non-GAAP operating margin.
- GAAP diluted net income per share attributable to common
stockholders in the third quarter of fiscal year 2024 was $0.04 on
147.6 million weighted-average shares outstanding. This compares to
GAAP diluted net income per share attributable to common
stockholders of $0.03 in the third quarter of fiscal year 2023 on
148.1 million weighted-average shares outstanding. GAAP net income
per share attributable to common stockholders in the third quarter
of fiscal year 2024 includes a negative impact of $0.05
year-over-year from unfavorable foreign exchange rates. The
equipment proceeds headwind represents an impact of $0.02 to GAAP
diluted net income per share.
- Non-GAAP diluted net income per share attributable to common
stockholders in the third quarter of fiscal year 2024 was $0.36.
This compares to non-GAAP diluted net income per share attributable
to common stockholders of $0.31 in the third quarter of fiscal year
2023. Non-GAAP net income per share attributable to common
stockholders in the third quarter of fiscal year 2024 includes a
negative impact of $0.05 year-over-year from unfavorable foreign
exchange rates. The equipment proceeds headwind represents an
impact of $0.02 to non-GAAP diluted net income per share.
- Net cash provided by operating activities in the third quarter
of fiscal year 2024 was $71.8 million, a 3% increase from net cash
provided by operating activities of $69.7 million in the third
quarter of fiscal year 2023.
- Non-GAAP free cash flow in the third quarter of fiscal year
2024 was $58.3 million, a 6% increase from non-GAAP free cash flow
of $55.0 million in the third quarter of fiscal year 2023.
For the purpose of this press release, growth on a constant
currency basis and impact from foreign exchange is determined by
comparing current period reported results with the current results
calculated using the equivalent rates in the prior period.
For more information on the non-GAAP financial measures and key
metrics discussed in this press release, please see the section
titled, “About Non-GAAP Financial Measures and Other Key Metrics,”
and the reconciliations of non-GAAP financial measures and certain
key metrics to their nearest comparable GAAP financial measures at
the end of this press release.
Recent Business Highlights
- Delivered wins or expansions with leading organizations such as
American College of Radiology, Bose, Idaho National Laboratory,
Natural Resources Conservation Service, Office of Energy Efficiency
and Renewable Energy, United States Air Force, United States
Department of Health and Human Services, VMware, and Zurich
Insurance Group AG.
- Rolled out Box AI in beta - a new suite of capabilities that
will natively integrate advanced AI models into the Box Content
Cloud, bringing Box’s enterprise-grade standards for security,
compliance, and privacy to this breakthrough technology.
- Announced Box Hubs to make it easier than ever to securely
curate and publish content across the enterprise.
- Unveiled the pricing and packaging for Box AI, which will
integrate within Box Hubs.
- Announced an expanded partnership with Google Cloud to
transform work in the enterprise with generative AI. Box will
integrate with Vertex AI to build new gen AI features that help
customers more efficiently process and analyze data stored in the
Box Content Cloud.
- Announced that Box is now available on Google Cloud
Marketplace, making it even easier for customers using Google Cloud
infrastructure to purchase Box.
- Announced a new partnership with CrowdStrike to help
organizations of all sizes secure their data in the cloud and stop
data-related breaches.
- Introduced the new Admin Insights UI in the Box Admin Console.
This feature provides admins with valuable and actionable
information about how, where, and when content is being accessed
and utilized across Box.
- Hosted BoxWorks 2023, attracting thousands of attendees and
customer speakers from leading organizations. Box also hosted
CIOWorks 2023 in-person with more than 100 CIOs from Fortune 1000
organizations in attendance.
- Announced the appointment of Olivia Nottebohm as Chief
Operating Officer (COO). Nottebohm will lead the global
go-to-market organization at Box, including Sales, Customer
Success, and Marketing.
- Announced the third-annual Box Impact Fund, which awards a
total of $150K to six nonprofits pursuing digital transformation
projects. Each organization will receive a $25K grant to put
towards expanding their tech capacities.
- Recognized as number 24 on the 100 Best Workplaces for Women
for 2023 list by Great Place to Work® and Fortune® magazine.
- Announced the opening of new Research and Development offices
in Warsaw and continued expansion into Poland.
Outlook
As a reminder, approximately one third of Box’s revenue is
generated outside of the U.S., of which approximately 60% is in
Japanese Yen. The following guidance includes the expected impact
of FX headwinds, assuming present foreign currency exchange
rates.
As discussed above, the fiscal fourth quarter and full year
fiscal 2024 gross profit, operating income, and diluted net income
per share include a headwind against the company’s expense forecast
of approximately $4 million and $7 million respectively, from an
anticipated decrease in proceeds from the sale of certain data
center equipment as the company completes its migration to the
public cloud (“equipment proceeds headwind”). Additionally, in the
fiscal fourth quarter, Box modified its Redwood City office lease
to reduce the amount of square footage, creating a one-time expense
of $1.6 million that will be recognized in Q4.
Q4 FY24 Guidance
- Revenue is expected to be in the range of $262 million to $264
million, up 3% year-over-year at the high-end of the range, or 5%
growth on a constant currency basis.
- GAAP operating margin is expected to be approximately 5.0%, and
non-GAAP operating margin is expected to be approximately 25.5%.
The equipment proceeds headwind represents an impact of 150 basis
points to both GAAP and non-GAAP operating margin. The lease
modifications discussed above represent a GAAP and non-GAAP
operating margin headwind of 60 basis points.
- GAAP net income per share attributable to common stockholders
is expected to be in the range of $0.05 to $0.06. GAAP EPS guidance
includes an expected negative impact of $0.03 from unfavorable
exchange rates. The equipment proceeds headwind represents an
impact of $0.02 to GAAP diluted net income per share. The lease
modifications discussed above represent a $0.01 impact to GAAP
diluted net income per share.
- Non-GAAP diluted net income per share attributable to common
stockholders is expected to be in the range of $0.38 to $0.39.
Non-GAAP EPS guidance includes an expected negative impact of $0.03
from unfavorable exchange rates. The equipment proceeds headwind
represents an impact of $0.02 to non-GAAP diluted net income per
share. The lease modifications discussed above represent a $0.01
impact to non-GAAP diluted net income per share.
- Weighted-average diluted shares outstanding are expected to be
approximately 147 million.
Full Year FY24 Guidance
- Revenue is expected to be in the range of $1.037 billion to
$1.039 billion, up 5% year-over-year at the high-end of the range,
or 8% growth on a constant currency basis.
- GAAP operating margin is expected to be approximately 4.0%, and
non-GAAP operating margin is expected to be 24.5%. The equipment
proceeds headwind represents an impact of 70 basis points to both
GAAP and non-GAAP operating margin. The lease modifications
discussed above represent a GAAP and non-GAAP operating margin
headwind of 15 basis points.
- GAAP net income per share attributable to common stockholders
is expected to be in the range of $0.15 to $0.16. FY24 GAAP EPS
guidance includes an expected negative impact of $0.17 from
unfavorable exchange rates. The equipment proceeds headwind
represents an impact of $0.04 to GAAP diluted net income per share.
The lease modifications discussed above represent a $0.01 impact to
GAAP diluted net income per share.
- Non-GAAP diluted net income per share attributable to common
stockholders is expected to be in the range of $1.42 to $1.43. FY24
non-GAAP EPS guidance includes an expected negative impact of $0.17
from unfavorable exchange rates. The equipment proceeds headwind
represents an impact of $0.04 to non-GAAP diluted net income per
share. The lease modifications discussed above represent a $0.01
impact to non-GAAP diluted net income per share.
- Weighted-average diluted shares outstanding are expected to be
approximately 148.5 million.
All forward-looking non-GAAP financial measures contained in
this section titled “Outlook” exclude estimates for stock-based
compensation expense, intangible assets amortization, and as
applicable, other special items. Box has provided a reconciliation
of GAAP to non-GAAP net income per share guidance at the end of
this press release.
Webcast and Conference Call Information
Box’s management team will host a conference call today
beginning at 2:00 PM (PT) / 5:00 PM (ET) to discuss Box’s financial
results, business highlights and future outlook. A live audio
webcast of this call will be available through Box’s Investor
Relations website at www.box.com/investors for a period of 90 days
after the date of the call. Prepared remarks will be available on
the Box Investor Relations website after the call ends.
The conference call can be accessed by registering online at
https://conferencingportals.com/event/QrpAwpkL at which time
registrants will receive dial-in information as well as a
conference ID. A telephonic replay of the call will be available
approximately two hours after the call and will run for one week.
The replay can be accessed by dialing:
+ 1-800-770-2030 (toll-free), conference ID: 23531 +
1-647-362-9199 (toll), conference ID: 23531
Box has used, and intends to continue to use, its Investor
Relations website (www.box.com/investors), as well as certain
Twitter accounts (@box, @levie and @boxincir), as a means of
disclosing material non-public information and for complying with
its disclosure obligations under Regulation FD. Information on or
that can be accessed through Box’s Investor Relations website,
these Twitter accounts, or that is contained in any website to
which a hyperlink is provided herein is not part of this press
release, and the inclusion of Box’s Investor Relations website
address, these Twitter accounts, and any hyperlinks are only
inactive textual references.
This press release, the financial tables, as well as other
supplemental information including the reconciliations of non-GAAP
financial measures and certain key metrics to their nearest
comparable GAAP financial measures, are also available on Box’s
Investor Relations website. Box also provides investor information,
including news and commentary about Box’s business and financial
performance, Box’s filings with the Securities and Exchange
Commission, notices of investor events and Box’s press and earnings
releases, on Box’s Investor Relations website.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks, uncertainties, and assumptions, including statements
regarding Box’s expectations regarding its growth and
profitability, the size of its market opportunity, sales
productivity, the demand for its products, the potential of AI and
its impact on Box, the timing of recent and planned product
introductions, enhancements and integrations, the short- and
long-term success, market adoption and retention, capabilities, and
benefits of such product introductions and enhancements, the
success of strategic partnerships, the impact of macroeconomic
conditions on its business, its ability to grow and scale its
business and drive operating efficiencies, the impact of
fluctuations in foreign currency exchange rates on its future
results, its net retention rate, its ability to achieve revenue
targets and billings expectations, its revenue and billings growth
rates, its ability to expand operating margins, its revenue growth
rate plus free cash flow margin in fiscal year 2024 and beyond, its
long-term financial targets, its ability to maintain profitability
on a quarterly or ongoing basis, its free cash flow, its ability to
continue to grow unrecognized revenue and remaining performance
obligations, its revenue, billings, GAAP and non-GAAP gross margin,
GAAP and non-GAAP net income (loss) per share, GAAP and non-GAAP
operating margins, the related components of GAAP and non-GAAP net
income (loss) per share, weighted-average outstanding share count
expectations for Box’s fiscal third quarter and full fiscal year
2024 in the section titled “Outlook” above, equity burn rate, any
potential repurchase of its common stock, whether, when, in what
amount and by what method any such repurchase would be consummated,
and the share price of any such repurchase. There are a significant
number of factors that could cause actual results to differ
materially from statements made in this press release, including:
(1) adverse changes in general economic or market conditions,
including those caused by the Hamas-Israel and Russia-Ukraine
conflicts, inflation, and fluctuations in foreign currency exchange
rates; (2) delays or reductions in information technology spending;
(3) factors related to Box’s highly competitive market, including
but not limited to pricing pressures, industry consolidation, entry
of new competitors and new applications and marketing initiatives
by Box’s current or future competitors; (4) the development of the
cloud content management market; (5) the risk that Box’s customers
do not renew their subscriptions, expand their use of Box’s
services, or adopt new products offered by Box on a timely basis,
or at all; (6) Box’s ability to provide timely and successful
enhancements, integrations, new features and modifications to its
platform and services; (7) actual or perceived security
vulnerabilities in Box’s services or any breaches of Box’s security
controls; (8) Box’s ability to realize the expected benefits of its
third-party partnerships; and (9) Box’s ability to successfully
integrate acquired businesses and achieve the expected benefits
from those acquisitions. In addition, the preliminary financial
results set forth in this release are estimates based on
information currently available to Box. While Box believes these
estimates are meaningful, they could differ from the actual amounts
that Box ultimately reports in its Quarterly Report on Form 10-Q
for the fiscal quarter ended October 31, 2023. Box assumes no
obligations and does not intend to update these estimates prior to
filing its Form 10-Q for the fiscal quarter ended October 31,
2023.
Additional information on potential factors that could affect
Box’s financial results is included in the reports on Forms 10-K,
10-Q and 8-K and in other filings Box makes with the Securities and
Exchange Commission from time to time, including the Quarterly
Report on Form 10-Q filed for the fiscal quarter ended July 31,
2023. These documents are available on the SEC Filings section of
Box’s Investor Relations website located at www.box.com/investors.
Box does not assume any obligation to update the forward-looking
statements contained in this press release to reflect events that
occur or circumstances that exist after the date on which they were
made.
About Non-GAAP Financial Measures and Other Key
Metrics
To supplement Box’s consolidated financial statements, which are
prepared and presented in accordance with GAAP, Box provides
investors with certain non-GAAP financial measures and other key
metrics, including non-GAAP gross profit, non-GAAP gross margin,
non-GAAP operating income (loss), non-GAAP operating margin,
non-GAAP net income (loss) attributable to common stockholders,
non-GAAP net income (loss) per share attributable to common
stockholders, billings, remaining performance obligations, non-GAAP
free cash flow and free cash flow margin. The presentation of these
non-GAAP financial measures and key metrics is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with
GAAP. For more information on these non-GAAP financial measures and
key metrics, please see the reconciliation of these non-GAAP
financial measures and certain key metrics to their nearest
comparable GAAP financial measures at the end of this press
release.
Box uses these non-GAAP financial measures and key metrics for
financial and operational decision-making (including for purposes
of determining variable compensation of members of management and
other employees) and as a means to evaluate period-to-period
comparisons. Box’s management believes that these non-GAAP
financial measures and key metrics provide meaningful supplemental
information regarding Box’s performance by excluding certain
expenses that may not be indicative of Box’s recurring core
business operating results. Box believes that both management and
investors benefit from referring to these non-GAAP financial
measures and key metrics in assessing Box’s performance and when
planning, forecasting, and analyzing future periods. These non-GAAP
financial measures and key metrics also facilitate management's
internal comparisons to Box’s historical performance as well as
comparisons to Box’s competitors' operating results. Box believes
these non-GAAP financial measures and key metrics are useful to
investors both because they (1) allow for greater transparency with
respect to key metrics used by management in its financial and
operational decision-making and (2) are used by Box’s institutional
investors and the analyst community to help them analyze the health
of Box’s business.
A limitation of non-GAAP financial measures and key metrics is
that they do not have uniform definitions. Further, Box’s
definitions will likely differ from the definitions used by other
companies, including peer companies, and therefore comparability
may be limited. Thus, Box’s non-GAAP financial measures and key
metrics should be considered in addition to, and not as a
substitute for, or in isolation from, measures prepared in
accordance with GAAP. Additionally, in the case of stock-based
compensation expense, if Box did not pay a portion of compensation
in the form of stock-based compensation expense, the cash salary
expense included in cost of revenue and operating expenses would be
higher, which would affect Box’s cash position. The accompanying
tables have more details on the reconciliations of non-GAAP
financial measures and certain key metrics to their nearest
comparable GAAP financial measures.
Non-GAAP gross profit and non-GAAP gross margin. Box defines
non-GAAP gross profit as GAAP gross profit excluding expenses
related to stock-based compensation (“SBC”) included in cost of
revenue, intangible assets amortization, and as applicable, other
special items. Non-GAAP gross margin is defined as non-GAAP gross
profit divided by revenue. Although SBC is an important aspect of
the compensation of Box’s employees and executives, determining the
fair value of certain of the stock-based instruments Box utilizes
estimation and the expense recorded may bear little resemblance to
the actual value realized upon the vesting or future exercise of
the related stock-based awards. Management believes it is useful to
exclude SBC in order to better understand the long-term performance
of Box’s core business and to facilitate comparison of Box’s
results to those of peer companies. Management also views
amortization of acquired intangible assets, such as the
amortization of the cost associated with an acquired company’s
developed technology and trade names, as items arising from
pre-acquisition activities determined at the time of an
acquisition. While these intangible assets are continually
evaluated for impairment, amortization of the cost of purchased
intangibles is a static expense that is not typically affected by
operations during any particular period. Box also excludes expenses
associated with a non-recurring workforce reorganization from
non-GAAP gross profit as they are considered by management to be
special items outside of Box’s core operating results.
Non-GAAP operating income (loss) and non-GAAP operating margin.
Box defines non-GAAP operating income (loss) as operating income
(loss) excluding expenses related to SBC, intangible assets
amortization, and as applicable, other special items. Non-GAAP
operating margin is defined as non-GAAP operating income (loss)
divided by revenue. Box excludes the following expenses as they are
considered by management to be special items outside of Box’s core
operating results: (1) fees related to shareholder activism (2)
expenses related to certain litigation, (3) expenses associated
with a non-recurring workforce reorganization, consisting primarily
of severance and other personnel-related costs, and (4) expenses
related to acquisitions, including transaction and discrete tax
costs.
Non-GAAP net income (loss) attributable to common stockholders
and non-GAAP net income (loss) per share attributable to common
stockholders. Box defines non-GAAP net income (loss) attributable
to common stockholders as GAAP net income (loss) attributable to
common stockholders excluding expenses related to SBC, intangible
assets amortization, amortization of debt issuance costs,
undistributed earnings attributable to preferred stockholders, and
as applicable, other special items as described in the preceding
paragraph. Box defines non-GAAP net income (loss) per share
attributable to common stockholders as non-GAAP net income (loss)
attributable to common stockholders divided by the weighted-average
outstanding shares.
Billings. Billings reflect, in any particular period, (1) sales
to new customers, plus (2) subscription renewals and (3) expansion
within existing customers, and represent amounts invoiced for all
products and professional services. Box calculates billings for a
period by adding changes in deferred revenue and contract assets in
that period to revenue. Box believes that billings help investors
better understand sales activity for a particular period, which is
not necessarily reflected in revenue as a result of the fact that
Box recognizes subscription revenue ratably over the subscription
term. Box considers billings a significant performance measure. Box
monitors billings to manage the business, make planning decisions,
evaluate performance and allocate resources. Box believes that
billings offers valuable supplemental information regarding the
performance of the business and helps investors better understand
the sales volumes and performance of the business. Although Box
considers billings to be a significant performance measure, Box
does not consider it to be a non-GAAP financial measure because it
is calculated using exclusively revenue, deferred revenue, and
contract assets, all of which are financial measures calculated in
accordance with GAAP.
Remaining performance obligations. Remaining performance
obligations (“RPO”) represent, at a point in time, contracted
revenue that has not yet been recognized. RPO consists of deferred
revenue and backlog. Backlog is defined as non-cancellable
contracts deemed certain to be invoiced and recognized as revenue
in future periods. Future invoicing is determined to be certain
when we have an executed non-cancellable contract or a significant
penalty that is due upon cancellation. While Box believes RPO is a
leading indicator of revenue as it represents sales activity not
yet recognized in revenue, it is not necessarily indicative of
future revenue growth as it is influenced by several factors,
including seasonality, contract renewal timing, average contract
terms and foreign currency exchange rates. Box monitors RPO to
manage the business and evaluate performance. Box considers RPO to
be a significant performance measure. Box does not consider RPO to
be a non-GAAP financial measure because it is calculated in
accordance with GAAP, specifically under ASC Topic 606.
Non-GAAP free cash flow and free cash flow margin. Box defines
non-GAAP free cash flow as cash flows from operating activities
less purchases of property and equipment, principal payments of
finance lease liabilities, capitalized internal-use software costs,
and other items that did not or are not expected to require cash
settlement and that management considers to be outside of Box’s
core business. Free cash flow margin is calculated as non-GAAP free
cash flow divided by revenue. Box specifically identifies adjusting
items in the reconciliation of GAAP to non-GAAP financial measures.
Box considers non-GAAP free cash flow to be a profitability and
liquidity measure that provides useful information to management
and investors about the amount of cash generated by the business
that can possibly be used for investing in Box's business and
strengthening its balance sheet, but it is not intended to
represent the residual cash flow available for discretionary
expenditures. The presentation of non-GAAP free cash flow is also
not meant to be considered in isolation or as an alternative to
cash flows from operating activities as a measure of liquidity.
About Box
Box (NYSE:BOX) is the leading Content Cloud, a single platform
that empowers organizations to manage the entire content lifecycle,
work securely from anywhere, and integrate across best-of-breed
apps. Founded in 2005, Box simplifies work for leading global
organizations, including AstraZeneca, JLL, Morgan Stanley, and
Nationwide. Box is headquartered in Redwood City, CA, with offices
across the United States, Europe, and Asia. Visit box.com to learn
more. And visit box.org to learn more about how Box empowers
nonprofits to fulfill their missions.
BOX, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In Thousands)
(Unaudited)
October 31,
January 31,
2023
2023
ASSETS
Current assets:
Cash and cash equivalents
$
377,911
$
428,465
Short-term investments
61,795
32,783
Accounts receivable, net
166,875
264,515
Deferred commissions
44,743
48,040
Other current assets
33,005
32,960
Total current assets
684,329
806,763
Property and equipment, net
44,195
69,972
Operating lease right-of-use assets,
net
118,532
131,172
Goodwill
73,306
73,863
Deferred commissions, non-current
61,808
71,999
Other long-term assets
51,653
53,396
Total assets
$
1,033,823
$
1,207,165
LIABILITIES, CONVERTIBLE PREFERRED
STOCK AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable, accrued expenses and
other current liabilities
$
59,685
$
79,810
Accrued compensation and benefits
26,179
44,086
Operating lease liabilities
34,097
47,752
Deferred revenue
450,666
544,179
Total current liabilities
570,627
715,827
Debt, net, non-current
370,322
369,351
Operating lease liabilities,
non-current
109,199
118,001
Other long-term liabilities
32,539
37,847
Total liabilities
1,082,687
1,241,026
Series A convertible preferred stock
491,551
489,990
Stockholders’ deficit:
Common stock
14
14
Additional paid-in capital
776,313
818,996
Accumulated other comprehensive loss
(10,743
)
(7,065
)
Accumulated deficit
(1,305,999
)
(1,335,796
)
Total stockholders’ deficit
(540,415
)
(523,851
)
Total liabilities, convertible preferred
stock and stockholders’ deficit
$
1,033,823
$
1,207,165
BOX, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In Thousands, Except Per
Share Data)
(Unaudited)
Three Months Ended
Nine Months Ended
October 31,
October 31,
2023
2022
2023
2022
Revenue
$
261,537
$
249,951
$
774,863
$
734,398
Cost of revenue (1)
69,227
64,490
197,891
191,542
Gross profit
192,310
185,461
576,972
542,856
Operating expenses:
Research and development (1)
61,026
59,107
186,860
182,805
Sales and marketing (1)
87,930
81,566
262,745
248,075
General and administrative (1)
31,975
31,422
97,778
94,846
Total operating expenses
180,931
172,095
547,383
525,726
Income from operations
11,379
13,366
29,589
17,130
Interest and other income (expense),
net
1,801
(1,427
)
7,412
(6,235
)
Income before provision for income
taxes
13,180
11,939
37,001
10,895
Provision for income taxes
2,524
2,031
7,204
4,641
Net income
$
10,656
$
9,908
$
29,797
$
6,254
Accretion and dividend on series A
convertible preferred stock
(4,280
)
(4,278
)
(12,811
)
(12,804
)
Undistributed earnings attributable to
preferred stockholders
(729
)
(648
)
(1,938
)
—
Net income (loss) attributable to common
stockholders
$
5,647
$
4,982
$
15,048
$
(6,550
)
Net income (loss) per share attributable
to common stockholders
Basic
$
0.04
$
0.03
$
0.10
$
(0.05
)
Diluted
$
0.04
$
0.03
$
0.10
$
(0.05
)
Weighted-average shares used to compute
net income (loss) per share attributable to common stockholders
Basic
143,915
142,385
144,296
143,604
Diluted
147,625
148,127
149,351
143,604
(1) Includes stock-based compensation
expense as follows:
Three Months Ended
Nine Months Ended
October 31,
October 31,
2023
2022
2023
2022
Cost of revenue
$
4,973
$
4,331
$
14,688
$
13,473
Research and development
17,731
16,556
53,455
52,377
Sales and marketing
16,810
14,158
49,674
44,247
General and administrative
11,380
9,807
33,700
30,551
Total stock-based compensation
$
50,894
$
44,852
$
151,517
$
140,648
BOX, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
October 31,
October 31,
2023
2022
2023
2022
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income
$
10,656
$
9,908
$
29,797
$
6,254
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
14,513
17,089
38,996
53,406
Stock-based compensation expense
50,894
44,852
151,517
140,648
Amortization of deferred commissions
13,434
13,437
40,803
39,878
Other
1,024
1,054
2,729
2,925
Changes in operating assets and
liabilities:
Accounts receivable, net
(3,029
)
(12,008
)
93,280
74,163
Deferred commissions
(11,042
)
(13,839
)
(28,361
)
(37,400
)
Operating lease right-of-use assets,
net
10,452
10,230
26,302
30,296
Other assets
1,934
4,840
707
(7,022
)
Accounts payable, accrued expenses and
other liabilities
(3,002
)
(9,729
)
(9,138
)
(11,724
)
Operating lease liabilities
(11,545
)
(10,892
)
(35,731
)
(33,105
)
Deferred revenue
(2,507
)
14,784
(81,513
)
(52,524
)
Net cash provided by operating
activities
71,782
69,726
229,388
205,795
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of short-term investments
(40,644
)
(27,575
)
(106,389
)
(87,253
)
Maturities of short-term investments
29,000
28,000
79,000
213,000
Purchases of property and equipment, net
of sale proceeds
(2,043
)
(1,770
)
(2,790
)
(2,539
)
Capitalized internal-use software
costs
(3,985
)
(2,500
)
(12,362
)
(7,010
)
Other
—
—
(190
)
(815
)
Net cash (used in) provided by investing
activities
(17,672
)
(3,845
)
(42,731
)
115,383
CASH FLOWS FROM FINANCING
ACTIVITIES:
Repurchases of common stock
(51,016
)
(29,966
)
(155,922
)
(264,852
)
Payments of dividends to preferred
stockholders
(3,750
)
(3,750
)
(11,193
)
(11,250
)
Proceeds from issuances of common stock
under employee equity plans
11,177
10,919
28,017
25,659
Employee payroll taxes paid for net
settlement of stock awards
(16,272
)
(16,051
)
(58,298
)
(74,778
)
Principal payments of finance lease
liabilities
(7,179
)
(10,422
)
(26,131
)
(29,838
)
Other
(419
)
(67
)
(3,989
)
(5,122
)
Net cash used in financing activities
(67,459
)
(49,337
)
(227,516
)
(360,181
)
Effect of exchange rate changes on
cash, cash equivalents, and restricted cash
(4,874
)
(7,433
)
(9,710
)
(19,080
)
Net (decrease) increase in cash, cash
equivalents, and restricted cash
(18,223
)
9,111
(50,569
)
(58,083
)
Cash, cash equivalents, and restricted
cash, beginning of period
396,694
349,694
429,040
416,888
Cash, cash equivalents, and restricted
cash, end of period
$
378,471
$
358,805
$
378,471
$
358,805
BOX, INC.
RECONCILIATION OF GAAP TO
NON-GAAP DATA
(In Thousands, Except Per
Share Data and Percentages)
(Unaudited)
Three Months Ended
Nine Months Ended
October 31,
October 31,
2023
2022
2023
2022
GAAP gross profit
$
192,310
$
185,461
$
576,972
$
542,856
Stock-based compensation
4,973
4,331
14,688
13,473
Acquired intangible assets
amortization
1,452
1,452
4,356
4,356
Workforce reorganization
912
—
912
—
Non-GAAP gross profit
$
199,647
$
191,244
$
596,928
$
560,685
GAAP gross margin
73.5
%
74.2
%
74.5
%
73.9
%
Stock-based compensation
1.9
1.7
1.9
1.8
Acquired intangible assets
amortization
0.6
0.6
0.5
0.6
Workforce reorganization
0.3
—
0.1
—
Non-GAAP gross margin
76.3
%
76.5
%
77.0
%
76.3
%
GAAP operating income
$
11,379
$
13,366
$
29,589
$
17,130
Stock-based compensation
50,894
44,852
151,517
140,648
Acquired intangible assets
amortization
1,452
1,452
4,356
4,356
Acquisition-related expenses
—
—
14
53
Fees related to shareholder activism
—
—
—
(77
)
Expenses related to litigation
(10
)
307
309
307
Workforce reorganization
912
—
912
—
Non-GAAP operating income
$
64,627
$
59,977
$
186,697
$
162,417
GAAP operating margin
4.4
%
5.3
%
3.8
%
2.3
%
Stock-based compensation
19.4
18.0
19.6
19.2
Acquired intangible assets
amortization
0.6
0.6
0.6
0.6
Acquisition-related expenses
—
—
—
—
Fees related to shareholder activism
—
—
—
—
Expenses related to litigation
—
0.1
—
—
Workforce reorganization
0.3
—
0.1
—
Non-GAAP operating margin
24.7
%
24.0
%
24.1
%
22.1
%
GAAP net income (loss) attributable to
common stockholders
$
5,647
$
4,982
$
15,048
$
(6,550
)
Stock-based compensation
50,894
44,852
151,517
140,648
Acquired intangible assets
amortization
1,452
1,452
4,356
4,356
Acquisition-related expenses
—
—
14
53
Fees related to shareholder activism
—
—
—
(77
)
Expenses related to litigation
(10
)
307
309
307
Workforce reorganization
912
—
912
—
Amortization of debt issuance costs
475
472
1,423
1,415
Undistributed earnings attributable to
preferred stockholders
(6,145
)
(5,424
)
(18,090
)
(16,024
)
Non-GAAP net income attributable to common
stockholders
$
53,225
$
46,641
$
155,489
$
124,128
GAAP net income (loss) per share
attributable to common stockholders, diluted
$
0.04
$
0.03
$
0.10
$
(0.05
)
Stock-based compensation
0.34
0.30
1.01
0.94
Acquired intangible assets
amortization
0.01
0.01
0.03
0.03
Acquisition-related expenses
—
—
—
—
Fees related to shareholder activism
—
—
—
—
Expenses related to litigation
—
—
—
—
Workforce reorganization
0.01
—
0.01
—
Amortization of debt issuance costs
—
—
0.01
0.01
Undistributed earnings attributable to
preferred stockholders
(0.04
)
(0.03
)
(0.12
)
(0.10
)
Non-GAAP net income per share attributable
to common stockholders, diluted
$
0.36
$
0.31
$
1.04
$
0.83
Weighted-average shares used to compute
Non-GAAP net income per share attributable to common stockholders,
diluted
147,625
148,127
149,351
150,083
GAAP net cash provided by operating
activities
$
71,782
$
69,726
$
229,388
$
205,795
Purchases of property and equipment, net
of proceeds from sales
(2,043
)
(1,770
)
(2,790
)
(2,539
)
Principal payments of finance lease
liabilities
(7,179
)
(10,422
)
(26,131
)
(29,838
)
Capitalized internal-use software
costs
(4,243
)
(2,567
)
(13,334
)
(9,629
)
Non-GAAP free cash flow
$
58,317
$
54,967
$
187,133
$
163,789
GAAP net cash (used in) provided by
investing activities
$
(17,672
)
$
(3,845
)
$
(42,731
)
$
115,383
GAAP net cash used in financing
activities
$
(67,459
)
$
(49,337
)
$
(227,516
)
$
(360,181
)
BOX, INC.
RECONCILIATION OF GAAP REVENUE
TO BILLINGS
(In Thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
October 31,
October 31,
2023
2022
2023
2022
GAAP revenue
$
261,537
$
249,951
$
774,863
$
734,398
Deferred revenue, end of period
471,963
467,080
471,963
467,080
Less: deferred revenue, beginning of
period
(479,293
)
(458,249
)
(566,630
)
(534,242
)
Contract assets, beginning of period
3,477
2,424
1,900
1,111
Less: contract assets, end of period
(3,944
)
(2,969
)
(3,944
)
(2,969
)
Billings
$
253,740
$
258,237
$
678,152
$
665,378
BOX, INC.
RECONCILIATION OF GAAP TO
NON-GAAP NET INCOME PER SHARE GUIDANCE
(In Thousands, Except Per
Share Data)
(Unaudited)
Three Months Ended
Fiscal Year Ended
January 31, 2024
January 31, 2024
GAAP net income per share attributable to
common stockholders range, diluted
$
0.05
-
$
0.06
$
0.15
-
$
0.16
Stock-based compensation
0.35
0.35
1.36
1.36
Acquired intangible asset amortization
0.01
0.01
0.04
0.04
Expenses related to litigation
0.01
0.01
0.02
0.02
Amortization of debt issuance costs
—
—
0.01
0.01
Undistributed earnings attributable to
preferred stockholders
(0.04
)
(0.04
)
(0.16
)
(0.16
)
Non-GAAP net income per share attributable
to common stockholders range, diluted
$
0.38
-
$
0.39
$
1.42
-
$
1.43
Weighted-average shares, diluted
147,000
148,500
BOX, INC.
RECONCILIATION OF GAAP TO
NON-GAAP OPERATING MARGIN GUIDANCE
(Unaudited)
Three Months Ended
Fiscal Year Ended
January 31, 2024
January 31, 2024
GAAP operating margin
5.0
%
4.0
%
Stock-based compensation
19.5
19.5
Acquired intangible assets
amortization
0.5
0.5
Expenses related to litigation
0.5
0.5
Non-GAAP operating margin
25.5
%
24.5
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231205162065/en/
Investors: Cynthia Hiponia and Elaine Gaudioso +1 650-209-3463
ir@box.com
Media: Denis Roy and Rachel Levine +1 650-543-6926
press@box.com
Box (NYSE:BOX)
과거 데이터 주식 차트
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Box (NYSE:BOX)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024