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Box
🇺🇸 NYSE:BOX
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Jul 31, 2022

Box Q2 2023 Earnings Report

Reported strong financial results with revenue growth and operating profitability.

Key Takeaways

Box reported a 15% year-over-year revenue increase, reaching $246.0 million for the second quarter of fiscal year 2023. The company achieved operating profitability on both GAAP and non-GAAP bases, with margins of 1% and 22%, respectively. Box is raising GAAP and non-GAAP EPS guidance, while maintaining FY23 revenue guidance despite FX headwinds.

Revenue for the second quarter of fiscal year 2023 was $246.0 million, a 15% increase year-over-year.

Remaining performance obligations (RPO) were $1.05 billion, a 14% increase year-over-year.

Billings for the second quarter of fiscal year 2023 were $235.0 million, a 10% increase year-over-year.

GAAP operating income in the second quarter of fiscal year 2023 was $3.1 million, compared to a GAAP operating loss of $6.1 million in the second quarter of fiscal year 2022.

Total Revenue
$246M
Previous year: $214M
+14.7%
EPS
$0.28
Previous year: $0.21
+33.3%
Total Revenue Growth
15%
Previous year: 12%
+25.0%
Gross Profit
$181M
Previous year: $154M
+17.9%
Cash and Equivalents
$349M
Previous year: $779M
-55.3%
Free Cash Flow
$18M
Previous year: $29.8M
-39.6%
Total Assets
$1.07B
Previous year: $1.53B
-30.1%

Box

Box

Forward Guidance

The U.S. dollar has strengthened resulting in a larger FX headwind in both Q3 FY23 and full year FY23. The following guidance includes the impact of any expected FX headwinds, assuming present foreign currency exchange rates.

Positive Outlook

  • Revenue is expected to be in the range of $250 million to $252 million, up 13% year-over-year at the high-end of the range.
  • GAAP operating margin is expected to be approximately 4%, and non-GAAP operating margin is expected to be approximately 23%.
  • 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 $0.29 to $0.30.
  • Revenue is expected to be in the range of $992 million to $996 million, up 14% year-over-year at the high-end of the range and represents an acceleration from last year’s growth rate of 13%.

Challenges Ahead

  • Revenue growth expectations include a negative impact of 4 percentage points from FX.
  • Weighted-average basic and diluted shares outstanding are expected to be approximately 143 million and 151 million, respectively.
  • Revenue growth expectations include a negative impact of 4 percentage points from FX.
  • FY23 GAAP EPS guidance includes an expected negative impact from FX of $0.19.
  • FY23 Non-GAAP EPS guidance includes an expected negative impact from FX of $0.19.

Company Overview

Full financial data and analysis

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