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Jul 31, 2024
Box Q2 2025 Earnings Report
Reported a strong second quarter with accelerated billings growth and record gross margin, operating margin, and EPS.
Key Takeaways
Box's Q2 2025 earnings showcased a 3% year-over-year revenue increase to $270 million, with a notable 6% growth in constant currency. The company achieved a GAAP operating margin of 7.5% and a record non-GAAP operating margin of 28.4%. GAAP net income per share was $0.10, and non-GAAP net income per share reached a record $0.44. Additionally, Box expanded its stock repurchase program by $100 million.
Revenue reached $270 million, a 3% increase year-over-year (6% in constant currency).
GAAP operating margin was 7.5%, while non-GAAP operating margin hit a record 28.4%.
GAAP net income per share was $0.10, and non-GAAP net income per share reached a record $0.44.
Billings increased by 10% year-over-year to $256.4 million.
Box
Box
Box Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Box provided guidance for Q3 FY25 and full year FY25, including revenue, operating margin, and EPS expectations, taking into account foreign exchange headwinds and deferred tax expenses.
Positive Outlook
- Q3 FY25 Revenue is expected to be in the range of $274 million to $276 million, up 5% year-over-year, or 6% growth on a constant currency basis.
- Q3 FY25 GAAP operating margin is expected to be approximately 7.5%, and non-GAAP operating margin is expected to be approximately 28%.
- Q3 FY25 GAAP net income per share attributable to common stockholders is expected to be in the range of $0.07 to $0.08.
- Q3 FY25 Non-GAAP diluted net income per share attributable to common stockholders is expected to be in the range of $0.41 to $0.42.
- Full Year FY25 Revenue is expected to be in the range of $1.086 billion to $1.09 billion, up 5% year-over-year, or 7% growth on a constant currency basis.
Challenges Ahead
- Q3 FY25 GAAP EPS guidance includes an expected negative impact of $0.02 from unfavorable exchange rates and $0.01 from the recognition of deferred tax expenses in international countries.
- Q3 FY25 Non-GAAP EPS guidance includes an expected negative impact of $0.02 from unfavorable exchange rates and $0.01 from the recognition of deferred tax expenses in international countries.
- Full Year FY25 GAAP EPS guidance includes an expected negative impact of $0.12 from unfavorable exchange rates and $0.05 from the recognition of deferred tax expenses in international countries.
- Full Year FY25 non-GAAP EPS guidance includes an expected negative impact of $0.12 from unfavorable exchange rates and $0.05 from the recognition of deferred tax expenses in international countries.
- FX is expected to be a 170 basis point headwind to full fiscal year 2025 revenue growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income