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Oct 31, 2024

Box Q3 2025 Earnings Report

Delivered strong Q3 financial results with revenue at the high-end of guidance and record gross and operating margins.

Key Takeaways

Box, Inc. reported revenue of $275.9 million, a 5% increase year-over-year, and record GAAP and non-GAAP operating margins for the third quarter of fiscal year 2025.

Revenue for the third quarter of fiscal 2025 was $275.9 million, a 5% increase year-over-year, or 6% growth on a constant currency basis.

Remaining performance obligations as of October 31, 2024 were $1.282 billion, a 13% increase year-over-year, or 14% growth on a constant currency basis.

GAAP operating income in the third quarter of fiscal 2025 was a record $23.4 million, or 8.5% of revenue.

Non-GAAP diluted net income per share attributable to common stockholders in the third quarter of fiscal 2025 was a record $0.45.

Total Revenue
$276M
Previous year: $262M
+5.5%
EPS
$0.45
Previous year: $0.36
+25.0%
Total Revenue Growth
5%
Gross Profit
$220M
Previous year: $192M
+14.6%
Cash and Equivalents
$609M
Previous year: $378M
+61.1%
Free Cash Flow
$57.4M
Previous year: $58.3M
-1.5%
Total Assets
$1.35B
Previous year: $1.03B
+31.0%

Box

Box

Forward Guidance

Box expects revenue of approximately $279 million, up 6% year-over-year, for Q4 FY25. Full year FY25 revenue is expected to be approximately $1.090 billion, up 5% year-over-year.

Positive Outlook

  • Revenue is expected to be approximately $279 million, up 6% year-over-year, or 7% growth on a constant currency basis for Q4 FY25.
  • GAAP operating margin is expected to be approximately 7.5%, and non-GAAP operating margin is expected to be approximately 27.5% for Q4 FY25.
  • GAAP net income per share attributable to common stockholders is expected to be approximately $0.07 for Q4 FY25.
  • Non-GAAP diluted net income per share attributable to common stockholders is expected to be approximately $0.41 for Q4 FY25.
  • Weighted-average diluted shares outstanding are expected to be approximately 151 million for Q4 FY25.

Challenges Ahead

  • 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 for Q4 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 for Q4 FY25.
  • Revenue is expected to be approximately $1.090 billion, up 5% year-over-year, or 7% growth on a constant currency basis for full year FY25.
  • GAAP operating margin is expected to be approximately 7.5%, and non-GAAP operating margin is expected to be approximately 28% for full year FY25.
  • FY25 GAAP EPS guidance includes an expected negative impact of $0.13 from unfavorable exchange rates and $0.05 from the recognition of deferred tax expenses in international countries for full year FY25.