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Apr 30, 2024
Box Q1 2025 Earnings Report
Box's Q1 2025 financial results were reported, with revenue exceeding guidance and demonstrating year-over-year growth. Operating margin and EPS were also strongly above guidance, with record non-GAAP gross margin and free cash flow growth.
Key Takeaways
Box reported a record revenue of $264.7 million for Q1 2025, a 5% increase year-over-year, with an 8% growth on a constant currency basis. The company's GAAP operating margin was 6.8%, and the non-GAAP operating margin was 26.6%, both exceeding guidance. GAAP net income per share was $0.08, and non-GAAP net income per share was $0.39, also exceeding guidance. Cash from operations increased by 5% year-over-year to $131 million, and non-GAAP free cash flow grew by 14% year-over-year to $123 million.
Revenue reached a record $264.7 million, up 5% year-over-year (8% in constant currency), surpassing expectations.
GAAP operating margin was 6.8%, and non-GAAP operating margin was 26.6%, both exceeding guidance.
GAAP net income per share was $0.08, and non-GAAP net income per share was $0.39, both exceeding guidance.
Non-GAAP free cash flow grew 14% year-over-year to $123.2 million.
Box
Box
Forward Guidance
Box expects Q2 FY25 revenue to be in the range of $268 million to $270 million, representing a 3% year-over-year increase at the high end (6% in constant currency). GAAP operating margin is expected to be approximately 6.0%, and non-GAAP operating margin is expected to be approximately 27%. GAAP net income per share is projected to be between $0.06 and $0.07, while non-GAAP diluted net income per share is expected to be in the range of $0.40 to $0.41.
Positive Outlook
- Revenue is expected to grow 3% year-over-year at the high end.
- Revenue is expected to grow 6% on a constant currency basis.
- GAAP operating margin is expected to be approximately 6.0%.
- Non-GAAP operating margin is expected to be approximately 27%.
- Weighted-average diluted shares outstanding are expected to be approximately 148 million.
Challenges Ahead
- GAAP EPS guidance includes an expected negative impact of $0.04 from unfavorable exchange rates.
- GAAP EPS guidance includes an expected negative impact of $0.01 from the recognition of deferred tax expenses in international countries.
- Non-GAAP EPS guidance includes an expected negative impact of $0.04 from unfavorable exchange rates.
- Non-GAAP EPS guidance includes an expected negative impact of $0.01 from the recognition of deferred tax expenses in international countries.
- Approximately one third of Box’s revenue is generated outside of the U.S., of which approximately 60% is in Japanese Yen, this creates FX headwinds.