Slide 1: Fourth Fiscal Quarter and FY24 Financial Results
Fourth Fiscal Quarter and FY24 Financial Results March 5, 2024
Slide 2: Forward-looking statements & non-GAAP financial measures
Forward-looking statements & non-GAAP financial measures This presentation contains forward-looking statements that involve risks, uncertainties, and assumptions, including statements regarding Box’s expectations regarding its growth and profitability, the size of its market opportunity, its investm
Slide 3: Revenue growth driven by Suites momentum
Revenue growth driven by Suites momentum v e nu e up 2% YoY Re co ns t a nt currency) (up 4% in $262 $263 $261 $256 $252 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Note: $ values are shown in millions. Box fiscal year ends January 31. Due to rounding, numbers presented may not calculate precisely to the percenta
Slide 4: RPO supports enduring growth and revenue visibility
RPO supports enduring growth and revenue visibility Driven by continued lengthening of contract durations partially offset by FX headwinds Total RPO up 5% YoY (up 9% in constant currency) $1,305 $1,245 $1,179 $1,138 $1,131 $539 $510 Long-Term RPO ($M) $478 $458 $445 $735 $701 $686 $766 Short-Term RP
Slide 5: Billings and deferred revenue
Billings and deferred revenue Billings up 6%* YoY Deferred revenue up 4%* YoY (up 10% in constant currency) (up 7% in constant currency) $379 $587 $357 $567 $507 $479 $472 $254 $233 $192 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Note: $ values are shown in millions. 5 *Reconciliati
Slide 6: Delivering leverage through gross margin expansion
Delivering leverage through gross margin expansion Optimizations from public cloud migration strategy drive leverage through reduced infrastructure costs offset by data equipment proceeds headwind Non-GAAP gross margin Down 10 bps YoY 78.5% 78.4% Q4'23 Q4'24 Note: A reconciliation of non-GAAP gross
Slide 7: Delivering operating margin improvements
Delivering operating margin improvements Operating discipline underpins quarter-over-quarter and year-over-year margin expansion Non-GAAP operating margin Up 70 bps YoY 26.7% 26.0% 24.8% 24.7% 22.8% Q4'23 Q1'24 Q3'24 Q3'24 Q4'24 Note: A reconciliation of non-GAAP operating margin to the nearest GAAP
Slide 8: Cash, cash equivalents, restricted cash, and short-term investments
Cash, cash equivalents, restricted cash, and short-term investments $ 89 $ 21 $ 481 $3 $ 440 $ 24 Q3'24 CFO Shares CAPEX & Other* Q4'24 Repurchased Cap Lease Payments *“Other” primarily consists of RSU taxes, capitalized internal-use software costs and payments of dividend to preferred stockholders.
Slide 9: Share repurchase program
Share repurchase program • In Q4, the Company repurchased approximately 790 thousand shares of Box’s Class A common stock for approximately $20 million. • As of January 31, 2024, the Company had approximately $64 million of remaining Board-approved buyback capacity under the current plan. • On March
Slide 10: Resilient business model focused on driving growth and profitability
Resilient business model focused on driving growth and profitability FY’21 FY’22 FY’23 FY’24 Q1’24 Q2’24 Q3’24 Q4’24 Annual Revenue Growth + N/A N/A N/A N/A 26% 33% 37% 31% FCF Margin YoY Revenue Growth 11% 13% 13% 5% 6% 6% 5% 2% Gross Margin 73% 74% 77% 77% 78% 77% 76% 78% 28% 27% 27% 27% S&M as a
Slide 11: Guidance and Outlook
box Guidance and Outlook
Slide 12: Q1 and fiscal year 2025 guidance
Q1 and fiscal year 2025 guidance Q1’25 FY25 Q1’25 FY25 (constant currency) (constant currency) Revenue $261M – $263M - $1.080B – $1.085B - year-over-year growth +4% at the high end +7% +5% at the high end +6% GAAP EPS (diluted) 4¢ –5¢ 8¢ –9¢ 22¢ – 26¢ 32¢ – 36¢ Non-GAAP EPS (diluted) 35¢ - 36¢ 39¢ –
Slide 13: Delivering revenue growth at scale
Delivering revenue growth at scale Offset by FX headwinds Q1 FY25 revenue guidance up 4% YoY1 FY25 revenue guidance up 5% YoY1 (Up 7% YoY in constant currency) (Up 6% in constant currency) $1,080-$1,085 $1,038 $991 $261 $262 $263 $261-$263 $874 $252 $771 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 FY21 FY22 FY23
Slide 14: Key Customer Metrics
box Key Customer Metrics
Slide 15: Net retention rate impacted by a challenging macroeconomic environment
Net retention rate impacted by a challenging macroeconomic environment Stable low full churn rate of 3% offset by lower than expected seat growth Quarterly net retention rate 108% 106% 103% 102% 101% Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 15
Slide 16: Customers increasingly adopting Suites
Customers increasingly adopting Suites Suites support high value use cases and reduce cost and complexity % of total revenue from Suites 55% 51% 47% 48% 46% Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 16
Slide 17: Large customer growth demonstrates strength of business model
Large customer growth demonstrates strength of business model Steady growth in customers paying more than $100k annually 1,740 1,770 1,680 1,700 1,650 +7% YoY Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Customers >$100k in average contract value 17 Note: Figures are rounded
Slide 18: Strong Suites attach rates
Strong Suites attach rates Attach rates demonstrate platform’s enhanced strategic value Suites attach rate of 81%, up 900 bps 81% 72% 87 85 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Number of new Suites deals > $100k Suites attach rate 18
Slide 19: Appendix
Appendix
Slide 20: Estimated Q1 and fiscal year 2025 preferred share impact summary
Estimated Q1 and fiscal year 2025 preferred share impact summary Q1 FY25 FY25 Amortization of preferred share issuance costs $0.5M $2.1M Preferred stock dividend $3.8M $15.0M Undistributed earnings attributable to preferred $6.0M - $7.0M $30.0M - $31.0M shareholders The preferred stock dividend and
Slide 21: GAAP Revenue to Billings Reconciliation
GAAP Revenue to Billings Reconciliation ($ in thousands) Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 GAAP revenue $256,476 $251,898 $261,428 $261,537 $262,878 Deferred revenue, end of period 566,630 507,385 479,293 471,963 586,871 Less: Deferred revenue, beginning of period (467,080) (566,630) (507,385) (479
Slide 22: GAAP to Non-GAAP Reconciliation – Gross Margin
GAAP to Non-GAAP Reconciliation – Gross Margin As a % of As a % of As a % of As a % of As a % of ($ in thousands) Q4FY23 revenue Q1FY24 revenue Q2FY24 revenue Q3FY24 revenue Q4FY24 revenue GAAP gross margin $195,462 76.2% $190,247 75.5% $194,415 74.4% $192,310 73.5% $200,157 76.1% Add: Stock-based c
Slide 23: GAAP to Non-GAAP Reconciliation — Operating Expenses
GAAP to Non-GAAP Reconciliation — Operating Expenses As a % of As a % of As a % of As a % of As a % of ($ in thousands) Q4FY23 revenue Q1FY24 revenue Q2FY24 revenue Q3FY24 revenue Q4FY24 revenue GAAP research and development $60,724 24% $62,518 25% $63,316 24% $61,026 23% $ 61,907 24% Less: Stock-ba
Slide 24: GAAP to Non-GAAP Reconciliation — Operating Expenses
GAAP to Non-GAAP Reconciliation — Operating Expenses As a % of As a % of As a % of As a % of ($ in thousands) FY21 revenue FY22 revenue FY23 revenue FY24 revenue GAAP research and development $201,262 26% $218,523 25% $243,529 25% $248,767 24% Less: Stock-based compensation (61,145) (68,063) (68,900
Slide 25: GAAP to Non-GAAP Reconciliation — Operating Margin
GAAP to Non-GAAP Reconciliation — Operating Margin As a % of As a % of As a % of As a % of As a % of ($ in thousands) Q4FY23 revenue Q1FY24 revenue Q2FY24 revenue Q3FY24 revenue QFY24 revenue GAAP operating margin $19,710 7.7% $8,335 3.3% $9,875 3.8% $11,379 4.4% $ 21,164 8.1% Add: Stock-based compe
Slide 26: GAAP to Non-GAAP Reconciliation — Free Cash Flow
GAAP to Non-GAAP Reconciliation — Free Cash Flow As a % of As a % of As a % of As a % of ($ in thousands) FY21 revenue FY22 revenue FY23 revenue FY24 revenue GAAP net cash provided by operating activities $196,834 26% $234,818 27% $297,980 30% $318,727 31% Less: Purchases of property and equipment,
Slide 27: GAAP to Non-GAAP Reconciliation — EPS Outlook
GAAP to Non-GAAP Reconciliation — EPS Outlook Three Months Ended Fiscal Year Ended April 30, 2024 January 31, 2025 GAAP net income per share attributable to common stockholders range, diluted $0.04 - $0.05 $0.22 - $0.26 Stock-based compensation 0.34 1.40 Acquired intangible asset amortization 0.01 0
Slide 28: GAAP to Non-GAAP Reconciliation — Operating Margin Outlook
GAAP to Non-GAAP Reconciliation — Operating Margin Outlook Three Months Ended Fiscal Year Ended April 30, 2024 January 31, 2025 GAAP operating margin 5.5% 7.0% Add: Stock-based compensation 19.0% 19.0% Add: Acquired intangible assets amortization 0.5% 0.5% Add: Expenses related to litigation - 0.5%