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Apr 30, 2023
Box Q1 2024 Earnings Report
Reported strong financial results, exceeding revenue, operating margin, and EPS guidance.
Key Takeaways
Box, Inc. announced strong fiscal first quarter 2024 financial results, with revenue of $251.9 million, a 6% increase year-over-year. The company's GAAP operating margin was 3%, and non-GAAP operating margin was 23%. Cash from operations was $125 million, up 16% year-over-year, and free cash flow was $108 million, up 19% year-over-year.
Revenue for the first quarter of fiscal year 2024 was $251.9 million, a 6% increase from revenue for the first quarter of fiscal year 2023.
Remaining performance obligations (“RPO”) as of April 30, 2023, were $1.179 billion, a 17% increase from remaining performance obligations as of April 30, 2022.
Billings for the first quarter of fiscal year 2024 were $191.9 million, an 11% increase from billings for the first quarter of fiscal year 2023.
Non-GAAP free cash flow in the first quarter of fiscal year 2024 was $108.2 million, a 19% increase from non-GAAP free cash flow in the first quarter of fiscal year 2023.
Box
Box
Forward Guidance
The U.S. dollar has continued to strengthen versus the currencies in which Box transacts international business following the prior earnings announcement on March 1, 2023, resulting in a larger than expected FX headwind for Q2 and the full year of FY24.
Positive Outlook
- Revenue is expected to be in the range of $260 million to $262 million, up 7% year-over-year at the high-end of the range, or 11% growth on a constant currency basis.
- GAAP operating margin is expected to be approximately 3%, and non-GAAP operating margin is expected to be approximately 24%.
- GAAP net income per share attributable to common stockholders is expected to be in the range of $0.01 to $0.02.
- Non-GAAP diluted net income per share attributable to common stockholders is expected to be in the range of $0.34 to $0.35.
- Weighted-average diluted shares outstanding are expected to be approximately 150 million.
Challenges Ahead
- The U.S. dollar has continued to strengthen versus the currencies in which Box transacts international business following the prior earnings announcement on March 1, 2023, resulting in a larger than expected FX headwind for Q2 and the full year of FY24.
- As a reminder, approximately one third of Box’s revenue is generated outside of the US, primarily in Japanese Yen.
- GAAP EPS guidance includes an expected negative impact of $0.05 from unfavorable exchange rates.
- Non-GAAP EPS guidance includes an expected negative impact of $0.05 from unfavorable exchange rates.
- Revenue is expected to be in the range of $260 million to $262 million, up 7% year-over-year at the high-end of the range, or 11% growth on a constant currency basis.