Box Q2 2022 Earnings Report
Key Takeaways
Box's Q2 2022 results showed strong revenue growth, driven by the increasing adoption of its Content Cloud platform. The company's focus on supporting remote work and digital processes has resonated with customers, leading to increased customer satisfaction and a higher net retention rate. Box is also on track to deliver a revenue growth rate plus free cash flow margin of at least 32% for FY22.
Revenue increased by 12% year-over-year to $214.5 million.
Remaining Performance Obligations (RPO) grew by 27% year-over-year to $922.4 million.
GAAP operating margin improved by 100 basis points year-over-year to negative 3%.
Free cash flow increased by $16.5 million year-over-year to $29.8 million.
Box
Box
Forward Guidance
Box provided guidance for Q3 FY22 and full year FY22. For Q3 FY22, revenue is expected to be in the range of $218 million to $219 million, GAAP operating margin is expected to be approximately negative 2.5%, and non-GAAP operating margin is expected to be approximately 20%. For full year FY22, revenue is expected to be in the range of $856 million to $860 million, GAAP operating margin is expected to be approximately negative 3%, and non-GAAP operating margin is expected to be approximately 19.5%.
Positive Outlook
- Revenue is expected to be in the range of $218 million to $219 million for Q3 FY22.
- GAAP operating margin is expected to be approximately negative 2.5% for Q3 FY22.
- Non-GAAP operating margin is expected to be approximately 20% for Q3 FY22.
- Revenue is expected to be in the range of $856 million to $860 million for full year FY22.
- Non-GAAP operating margin is expected to be approximately 19.5% for full year FY22.
Challenges Ahead
- GAAP operating margin is expected to be approximately negative 2.5% for Q3 FY22.
- GAAP basic and diluted net loss per share attributable to common stockholders are expected to be in the range of $0.09 to $0.08 for Q3 FY22.
- GAAP operating margin is expected to be approximately negative 3% for full year FY22.
- GAAP basic and diluted net loss per share attributable to common stockholders are expected to be in the range of $0.34 to $0.32 for full year FY22.
- Weighted-average basic and diluted shares outstanding are expected to be approximately 158 million and 166 million, respectively for full year FY22.