Slide 1: Third Fiscal Quarter FY25 Financial Results
Third Fiscal Quarter FY25 Financial Results December 3, 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 $276 $270 $263 $265 $262 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Note: $ values are shown in millions. Box fiscal year ends January 31. 3
Slide 4: RPO supports enduring growth and revenue visibility
RPO supports enduring growth and revenue visibility Driven by strong contract durations partially offset by FX headwinds Total RPO up 13% YoY (up 14% in constant currency) $1,305 $1,212 $1,272 $1,282 $1,131 Long-Term RPO ($M) $539 $549 $545 $496 $445 Short-Term RPO ($M) $686 $766 $716 $723 $737 Q3'2
Slide 5: Billings and deferred revenue
Billings and deferred revenue Billings up 4%* YoY Deferred revenue up 4%* YoY (up 3% in constant currency) (up 5% in constant currency) $379 $587 $514 $502 $472 $491 $254 $256 $265 $190 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Note: $ values are shown in millions. 5 *Reconciliatio
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 Non-GAAP gross margin Up 560 bps YoY 81.6% 81.9% 80.2% 78.4% 76.3% Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Note: A reconciliation of non-GAAP gross margin t
Slide 7: Delivering operating margin improvements
Delivering operating margin improvements Operating discipline underpins year-over-year margin expansion Non-GAAP operating margin Up 440 bps YoY 29.1% 28.4% 26.7% 26.6% 24.7% Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Note: A reconciliation of non-GAAP operating margin to the nearest GAAP financial measures can
Slide 8: Cash, cash equivalents, restricted cash, and short-term investments
Cash, cash equivalents, restricted cash, and short-term investments $ 235 $ 699 $ 54 $ 63 $2 $ 483 $ 30 Q2'25 CFO Shares CAPEX Convertible Other* Q3'25 Repurchased Notes * ”Other” primarily consists of payments on borrowings, RSU taxes, capitalized internal-use software costs, payments of dividend t
Slide 9: Share repurchase program
Share repurchase program • In Q3, the Company repurchased approximately 1.0 million shares of Box’s Class A common stock for approximately $30 million. • As of October 31, 2024, the Company had approximately $95 million of remaining Board- approved buyback capacity under the current plan. • Year-to-
Slide 10: Proven business model focused on driving growth and profitability
Proven business model focused on driving growth and profitability FY’22 FY’23 FY’24 Q1’25 Q2’25 Q3’25 Annual Revenue Growth + FCF Margin 33% 37% 31% N/A N/A N/A YoY Revenue Growth 13% 13% 5% 5% 3% 5% Gross Margin 74% 77% 77% 80% 82% 82% S&M as a % of Revenue 28% 28% 27% 28% 28% 27% R&D as a % of Rev
Slide 11: Guidance and Outlook
box Guidance and Outlook
Slide 12: Q4 and fiscal year 2025 guidance
Q4 and fiscal year 2025 guidance Q4’25 FY25 Q4’25 FY25 (constant currency) (constant currency) Revenue Approximately $279M - Approximately $1.09B - year-over-year growth +6% +7% +5% +7% GAAP EPS (diluted) Approximately 7¢ Approximately 9¢ Approximately 30¢ Approximately 43¢ Non-GAAP EPS (diluted) Ap
Slide 13: Delivering revenue growth at scale
Delivering revenue growth at scale Offset by FX headwinds Q4 FY25 revenue guidance up 6% YoY1 FY25 revenue guidance up 5% YoY1 (Up 7% YoY in constant currency) (Up 7% YoY in constant currency) ~$1,090 ~$279 $1,038 $276 $991 $270 $265 $874 $263 $771 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 FY21 FY22 FY23 FY24 F
Slide 14: Estimated Q4 and fiscal year 2025 preferred share impact summary
Estimated Q4 and fiscal year 2025 preferred share impact summary Q4 FY25 FY25 Amortization of preferred share issuance costs $0.5M $2.1M Preferred stock dividend $3.8M $15.0M Undistributed earnings attributable to preferred $7.5M - $8.5M $32.0M - $33.0M shareholders The impact from the above items w
Slide 15: Estimated convertible debt impact summary
Estimated convertible debt impact summary* Q3FY25 Q4FY25E FY25E Inducement expense (impact to GAAP EPS) $0.07 N/A $0.07 Amortization of debt issuance costs (impact to GAAP EPS) $0.7M $0.9M $2.5M Interest expense (impact to GAAP and Non-GAAP EPS) $0.8M $1.7M $2.5M *Included in guidance provided on De
Slide 16: Key customer metrics
box Key customer metrics
Slide 17: Net retention rate stabilized in a stable macroeconomic environment
Net retention rate stabilized in a stable macroeconomic environment Customer stickiness drives low full churn rate of 3% Quarterly net retention rate 102% 101% 101% 102% 102% Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 17
Slide 18: Customers increasingly adopting Suites
Customers increasingly adopting Suites Suites support high value use cases and reduce cost and complexity % of total revenue from Suites 58% 59% 56% 55% 51% Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 18
Slide 19: 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 1,900 1,850 1,800 1,770 1,740 +8% YoY Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Customers >$100k in average contract value Note: Figures are rounded 19
Slide 20: Strong Suites attach rates
Strong Suites attach rates Attach rates demonstrate platform’s enhanced strategic value Suites attach rate of 83%, up 400 bps YoY 83% 79% 68 53 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Number of new Suites deals > $100k Suites attach rate 20
Slide 21: Appendix
Appendix
Slide 22: GAAP Revenue to Billings Reconciliation
GAAP Revenue to Billings Reconciliation ($ in thousands) Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 GAAP revenue $261,537 $262,878 $264,658 $270,039 $275,913 Deferred revenue, end of period 471,963 586,871 513,572 502,104 491,304 Less: Deferred revenue, beginning (479,293) (471,963) (586,871) (513,572) (502
Slide 23: GAAP to Non-GAAP Reconciliation – Gross Margin
GAAP to Non-GAAP Reconciliation – Gross Margin As a % of As a % of As a % of As a % of As a % of ($ in thousands) Q3FY24 revenue Q4FY24 revenue Q1FY25 revenue Q2FY25 revenue Q3FY25 revenue GAAP gross margin $192,310 73.5% $200,157 76.1% $206,406 78.0% $214,526 79.4% $220,357 79.9% Add: Stock-based c
Slide 24: GAAP to Non-GAAP Reconciliation — Operating Expenses
GAAP to Non-GAAP Reconciliation — Operating Expenses As a % of As a % of As a % of As a % of As a % of As a % of ($ in thousands) FY22 revenue FY23 revenue FY24 revenue Q1FY25 revenue Q2FY25 revenue Q3FY25 revenue GAAP research and development $218,523 25% $243,529 25% $248,767 24% $65,673 24% $65,4
Slide 25: GAAP to Non-GAAP Reconciliation — Operating Margin
GAAP to Non-GAAP Reconciliation — Operating Margin As a % of As a % of As a % of As a % of As a % of ($ in thousands) Q3FY24 revenue Q4FY24 revenue Q1FY25 revenue Q2FY25 revenue Q3FY25 revenue GAAP operating margin $11,379 4.4% $21,164 8.1% $18,007 6.8% $20,280 7.5% $23,411 8.5% Add: Stock-based com
Slide 26: GAAP to Non-GAAP Reconciliation — Free Cash Flow
GAAP to Non-GAAP Reconciliation — Free Cash Flow As a % of As a % of As a % of ($ in thousands) FY22 revenue FY23 revenue FY24 revenue GAAP net cash provided by operating activities $234,818 27% $297,980 30% $318,727 31% Less: Purchases of property and equipment, net of (4,702) (4,433) (1,843) proce
Slide 27: GAAP to Non-GAAP Reconciliation — EPS Outlook
GAAP to Non-GAAP Reconciliation — EPS Outlook Three Months Ended Fiscal Year Ended January 31, 2025 January 31, 2025 GAAP net income per share attributable to common stockholders, diluted $0.07 $0.30 Stock-based compensation 0.36 1.46 Acquired intangible asset amortization 0.01 0.03 Amortization of
Slide 28: GAAP to Non-GAAP Reconciliation — Operating Margin Outlook
GAAP to Non-GAAP Reconciliation — Operating Margin Outlook Three Months Ended Fiscal Year Ended January 31, 2025 January 31, 2025 GAAP operating margin 7.5% 7.5% Add: Stock-based compensation 19.5% 20.0% Add: Acquired intangible assets amortization 0.5% 0.5% Non-GAAP operating margin 27.5% 28.0% 28