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Oct 31, 2023
Box Q3 2024 Earnings Report
Box's Q3 2024 financial results were announced, showing revenue growth and increased profitability
Key Takeaways
Box reported a 5% year-over-year increase in revenue, reaching $261.5 million. The company's focus on profitable growth led to operating margin expansion and a 16% year-over-year increase in earnings per share. Box is also investing in product innovation, including Box AI and Box Hubs.
Revenue increased by 5% year-over-year to $261.5 million.
Remaining performance obligations (RPO) grew by 7% year-over-year to $1.131 billion.
GAAP gross profit was $192.3 million, representing 73.5% of revenue.
Non-GAAP diluted net income per share was $0.36, compared to $0.31 in the prior year.
Box
Box
Forward Guidance
Box expects revenue between $262 million and $264 million for Q4 FY24, representing a 3% year-over-year increase at the high end. GAAP operating margin is expected to be approximately 5.0%, and non-GAAP operating margin is expected to be approximately 25.5%.
Positive Outlook
- Revenue is expected to be in the range of $262 million to $264 million, up 3% year-over-year at the high-end of the range, or 5% growth on a constant currency basis.
- GAAP operating margin is expected to be approximately 5.0%, and non-GAAP operating margin is expected to be approximately 25.5%.
- GAAP net income per share attributable to common stockholders is expected to be in the range of $0.05 to $0.06.
- Non-GAAP diluted net income per share attributable to common stockholders is expected to be in the range of $0.38 to $0.39.
- Weighted-average diluted shares outstanding are expected to be approximately 147 million.
Challenges Ahead
- The fiscal fourth quarter gross profit, operating income, and diluted net income per share include a headwind against the company’s expense forecast of approximately $4 million from an anticipated decrease in proceeds from the sale of certain data center equipment as the company completes its migration to the public cloud.
- In the fiscal fourth quarter, Box modified its Redwood City office lease to reduce the amount of square footage, creating a one-time expense of $1.6 million that will be recognized in Q4.
- GAAP EPS guidance includes an expected negative impact of $0.03 from unfavorable exchange rates.
- The equipment proceeds headwind represents an impact of $0.02 to GAAP diluted net income per share.
- The lease modifications represent a $0.01 impact to GAAP diluted net income per share.