•
Oct 31, 2021

Box Q3 2022 Earnings Report

Reported strong financial results, marked by accelerating revenue growth and increased customer adoption

Key Takeaways

Box, Inc. announced strong fiscal third quarter 2022 financial results, featuring a third consecutive quarter of accelerating growth with revenue up 14% year-over-year. Remaining Performance Obligations (RPO) and Billings also saw a 25% year-over-year increase. The company raised revenue and non-GAAP operating margin guidance for the full fiscal year 2022 and approved a new $200 million stock repurchase program.

Revenue for the third quarter of fiscal year 2022 was $224.0 million, an increase of 14% from the third quarter of fiscal year 2021.

Remaining performance obligations as of October 31, 2021, were $948.1 million, a 25% increase from the third quarter of fiscal year 2021.

Billings for the third quarter of fiscal year 2022 were $231.5 million, a 25% increase from the third quarter of fiscal year 2021.

Non-GAAP operating income in the third quarter of fiscal year 2022 was $46.4 million, or 21% of revenue.

Total Revenue
$224M
Previous year: $196M
+14.3%
EPS
$0.22
Previous year: $0.2
+10.0%
Total Revenue Growth
14%
Previous year: 11%
+27.3%
Gross Profit
$161M
Previous year: $139M
+15.7%
Cash and Equivalents
$568M
Previous year: $275M
+106.3%
Free Cash Flow
$31.2M
Previous year: $26.2M
+19.1%
Total Assets
$1.41B

Box

Box

Forward Guidance

Box provided guidance for Q4 FY22 and full year FY22. For Q4, revenue is expected to be in the range of $227 million to $229 million, up 15% year-over-year at the high-end. Non-GAAP diluted net income per share is expected to be in the range of $0.22 to $0.23. For the full year, revenue is expected to be in the range of $868 million to $870 million, up 13% year-over-year at the high-end. Non-GAAP diluted net income per share is expected to be in the range of $0.83 to $0.84.

Positive Outlook

  • Revenue is expected to be in the range of $227 million to $229 million, up 15% year-over-year at the high-end of the range for Q4 FY22.
  • Non-GAAP operating margin is expected to be approximately 21% for Q4 FY22.
  • Non-GAAP diluted net income per share attributable to common stockholders is expected to be in the range of $0.22 to $0.23 for Q4 FY22.
  • Revenue is expected to be in the range of $868 million to $870 million for full year FY22, up 13% year-over-year at the high-end of the range.
  • Non-GAAP diluted net income per share attributable to common stockholders is expected to be in the range of $0.83 to $0.84 for full year FY22.

Challenges Ahead

  • GAAP operating margin is expected to be approximately 1% for Q4 FY22.
  • GAAP basic and diluted net loss per share attributable to common stockholders are expected to be in the range of $0.06 to $0.05 for Q4 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 $0.35 to $0.34 for full year FY22.
  • All forward-looking non-GAAP financial measures exclude estimates for stock-based compensation expense, intangible assets amortization, and other special items.