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2019 Press Releases

September 04, 2019

Box Reports Revenue of $172.5 Million for Fiscal Second Quarter 2020, Up 16 Percent Year-Over-Year

Box, Inc., a leader in cloud content management, announced financial results for the second quarter of fiscal year 2020, which ended July 31, 2019.

“We made significant progress on our key objectives in Q2, as we continued to deliver more products to our customers that enable higher value use cases, while executing on the most compelling product roadmap in our history,” said Aaron Levie, co-founder and CEO of Box. “We drove strong add-on product attach rates of more than 80% across our six-figure deals in Q2. Customers are increasingly adopting Box’s comprehensive Cloud Content Management solutions to protect their most important information with frictionless security and compliance, streamline internal and external collaboration and workflows, and enable a more productive workplace by leveraging a best-of-breed IT stack.”

“We remain focused on driving long-term growth as enterprises implement our more robust product portfolio,” said Dylan Smith, co-founder and CFO of Box. “We continued to deliver operational efficiencies in the second quarter on our path to achieving our first full year of non-GAAP profitability in FY20, and we are committed to delivering meaningful operating margin improvements in FY21 and beyond.”

Adoption of the New Lease Standard - ASC Topic 842
Box adopted the new lease standard, Accounting Standards Codification Topic 842 (“ASC 842”), on a modified retrospective basis, effective February 1, 2019. Financial results for reporting periods in Box’s fiscal year ending January 31, 2020 are presented in compliance with the new lease standard. Historical financial results for reporting periods prior to fiscal year 2020 are presented in conformity with amounts previously disclosed under the prior lease standard, Accounting Standards Codification Topic 840 (“ASC 840”). The adoption of ASC 842 did not have a material effect on Box’s condensed consolidated statements of operations and cash flows, however, did materially increase Box’s assets and liabilities on the condensed consolidated balance sheet.

Fiscal Second Quarter Financial Highlights

  • Revenue for the second quarter of fiscal year 2020 was $172.5 million, an increase of 16% from the second quarter of fiscal year 2019.

  • Remaining performance obligations as of July 31, 2019 were $640.5 million, an increase of 9% from the second quarter of fiscal year 2019.

  • Deferred revenue as of July 31, 2019 was $330.8 million, an increase of 10% from the second quarter of fiscal year 2019.

  • Billings for the second quarter of fiscal year 2020 were $172.9 million, an increase of 6% from the second quarter of fiscal year 2019.

  • GAAP operating loss in the second quarter of fiscal year 2020 was $36.3 million, or 21% of revenue. This compares to a GAAP operating loss of $37.2 million, or 25% of revenue, in the second quarter of fiscal year 2019.

  • Non-GAAP operating income in the second quarter of fiscal year 2020 was $0.5 million, or 0% of revenue. This compares to a non-GAAP operating loss of $6.5 million, or 4% of revenue, in the second quarter of fiscal year 2019.

  • GAAP net loss per share, basic and diluted, in the second quarter of fiscal year 2020 was $0.25 on 147.0 million weighted average shares outstanding. This compares to a GAAP net loss per share of $0.27 in the second quarter of fiscal year 2019 on 140.7 million weighted average shares outstanding.

  • Non-GAAP net income per share, diluted, in the second quarter of fiscal year 2020 was $0.00 on 153.2 million weighted average diluted shares outstanding. This compares to a non-GAAP net loss per share of $0.05 in the second quarter of fiscal year 2019.

  • Net cash used in operating activities in the second quarter of fiscal year 2020 totaled $4.7 million. This compares to net cash used in operating activities of $1.3 million in the second quarter of fiscal year 2019.

  • Free cash flow in the first quarter of fiscal year 2020 was negative $19.0 million. This compares to negative $10.3 million in the second quarter of fiscal year 2019.

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.

Business Highlights since Last Earnings Release

  • Delivered wins and expansions with leading organizations such as City of Philadelphia, City National Corporation, IQVIA, and LPL Financial.

  • Recognized as a Leader in the “The Forrester New Wave™: Cloud Content Platforms — Multitenant SaaS, Q3 2019” report. Box was the only company to receive differentiated ratings in vision, roadmap, and market approach.

  • Announced the upcoming general availability of Box Shield, a set of new security controls and intelligent threat detection capabilities that enables enterprises to power secure collaboration and workflows around their most valuable content.

  • Announced the general availability of Box Relay, Box’s powerful workflow engine that automates critical business processes across an organization’s extended enterprise.

  • Announced the general availability of Cascading Folder Level Metadata, making it easier for users to add additional context to content, structure business-centric data, and trigger workflows and retention policies based on metadata.

  • Launched updates to the Box Tasks and Notifications experience, including an all new Task Center to view work and an enhanced Notification Center to more easily track all relevant activities in Box.

  • Hosted Box World Tour Tokyo with thousands of customers, partners, and IT industry leaders from across Japan.

  • Welcomed Mark Wayland as chief revenue officer, leading Box’s global sales organization. Mr. Wayland brings more than 25 years of enterprise sales experience having held leadership roles at Salesforce, Gartner, and most recently as chief revenue officer at Tanium.

Outlook

  • Q3 FY20 Guidance: Revenue is expected to be in the range of $174 million to $175 million. GAAP basic and diluted net loss per share are expected to be in the range of $0.28 to $0.27. Non-GAAP basic and diluted net (loss) income per share are expected to be in the range of $(0.01) to $0.00. Weighted average basic and diluted shares outstanding are expected to be approximately 149 million and 153 million, respectively.

  • Full Year FY20 Guidance: Revenue is expected to be in the range of $690 million to $692 million. GAAP basic and diluted net loss per share are expected to be in the range of $1.03 to $1.01. Non-GAAP basic and diluted net income per share are expected to be in the range of $0.00 to $0.02. The weighted average basic and diluted shares outstanding are expected to be approximately 148 million and 153 million, respectively.

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, certain legal settlement and related costs. Box has provided a reconciliation of GAAP to non-GAAP net income (loss) per share guidance at the end of this press release.