Slide 1: Second Fiscal Quarter FY25 Financial Results
Second Fiscal Quarter FY25 Financial Results August 27, 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 $270 $265 $262 $263 $261 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Note: $ values are shown in millions. Box fiscal year ends January 31.
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 12% YoY (up 14% in constant currency) $1,305 $1,272 $1,212 $1,138 $1,131 Long-Term RPO ($M) $539 $549 $496 $458 $445 Short-Term RPO ($M) $680 $686 $766 $716 $723 Q2'2
Slide 5: Billings and deferred revenue
Billings and deferred revenue Billings up 10%* YoY Deferred revenue up 5%* YoY (up 9% in constant currency) (up 7% in constant currency) $379 $587 $514 $502 $479 $472 $254 $256 $233 $190 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Note: $ values are shown in millions. *Reconciliation
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 470 bps YoY 81.6% 76.9% Q2'24 Q2'25 Note: A reconciliation of non-GAAP gross margin to the nearest GAAP financial measure
Slide 7: Delivering operating margin improvements
Delivering operating margin improvements Operating discipline underpins year-over-year margin expansion Non-GAAP operating margin Up 360 bps YoY 28.4% 26.7% 26.6% 24.8% 24.7% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 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 36 56 3 483 0 6 *“Other” primarily consists of RSU taxes, capitalized internal-use software costs, and payments of dividend to preferred stockholders, partially offset by proceeds from options exercises and effects of exchange rate
Slide 9: Share repurchase program
Share repurchase program • In Q2, the Company repurchased approximately 3.9 million shares of Box’s Class A common stock for approximately $102 million. • As of July 31, 2024, the Company had approximately $25 million of remaining Board-approved buyback capacity under the current plan. • On August 2
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 Annual Revenue Growth + FCF Margin 33% 37% 31% N/A N/A YoY Revenue Growth 13% 13% 5% 5% 3% Gross Margin 74% 77% 77% 80% 82% S&M as a % of Revenue 28% 28% 27% 28% 28% R&D as a % of Revenue 17% 18% 17% 17%
Slide 11: Guidance and Outlook
box Guidance and Outlook
Slide 12: Q3 and fiscal year 2025 guidance
Q3 and fiscal year 2025 guidance Q3’25 FY25 Q3’25 FY25 (constant currency) (constant currency) Revenue $274M – $276M - $1.086B – $1.090B - year-over-year growth +5% +6% +5% +7% GAAP EPS (diluted) 7¢ –8¢ 9¢ –10¢ 31¢ – 33¢ 43¢ – 45¢ Non-GAAP EPS (diluted) 41¢ - 42¢ 43¢ – 44¢ $1.64 - $1.66 $1.76 - $1.7
Slide 13: Key customer metrics
box Key customer metrics
Slide 14: Delivering revenue growth at scale
Delivering revenue growth at scale Offset by FX headwinds Q3 FY25 revenue guidance up 5% YoY1 FY25 revenue guidance up 5% YoY1 (Up 6% YoY in constant currency) (Up 7% YoY in constant currency) $1,086-$1,090 $1,038 $274-$276 $991 $270 $874 $263 $265 $262 $771 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 FY21 FY22 F
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% supports modest sequential improvement Quarterly net retention rate 103% 102% 101% 101% 102% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25
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 56% 58% 55% 51% 48% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25
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 1,850 1,800 1,770 1,740 1,700 +9% YoY Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Customers >$100k in average contract value 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 87%, up 900 bps 87% 78% 65 43 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Number of new Suites deals > $100k Suites attach rate
Slide 19: Appendix
Appendix
Slide 20: Estimated Q3 and fiscal year 2025 preferred share impact summary
Estimated Q3 and fiscal year 2025 preferred share impact summary Q3 FY25 FY25 Amortization of preferred share issuance costs $0.5M $2.1M Preferred stock dividend $3.8M $15.0M Undistributed earnings attributable to preferred $8.0M - $9.0M $32.0M - $33.0M shareholders The impact from the above items w
Slide 21: GAAP Revenue to Billings Reconciliation
GAAP Revenue to Billings Reconciliation ($ in thousands) Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 GAAP revenue $261,428 $261,537 $262,878 $264,658 $270,039 Deferred revenue, end of period 479,293 471,963 586,871 513,572 502,104 Less: Deferred revenue, beginning (507,385) (479,293) (471,963) (586,871) (513
Slide 22: GAAP to Non-GAAP Reconciliation – Gross Margin
GAAP to Non-GAAP Reconciliation – Gross Margin As a % of As a % of As a % of ($ in thousands) Q2FY24 revenue Q1FY25 revenue Q2FY25 revenue GAAP gross margin $194,415 74.4% $206,406 78.0% $214,526 79.4% Add: Stock-based compensation 5,230 4,621 4,731 Add: Acquired intangible assets 1,452 1,152 981 am
Slide 23: GAAP to Non-GAAP Reconciliation — Operating Expenses
GAAP to Non-GAAP Reconciliation — Operating Expenses As a % of As a % of As a % of As a % of As a % of ($ in thousands) FY22 revenue FY23 revenue FY24 revenue Q1FY25 revenue Q2FY25 revenue GAAP research and development $218,523 25% $243,529 25% $248,767 24% $62,673 24% $65,445 24% Less: Stock-based
Slide 24: GAAP to Non-GAAP Reconciliation — Operating Margin
GAAP to Non-GAAP Reconciliation — Operating Margin As a % of As a % of As a % of As a % of As a % of ($ in thousands) Q2FY24 revenue Q3FY24 revenue Q4FY24 revenue Q1FY25 revenue Q2FY25 revenue GAAP operating margin $9,875 3.8% $11,379 4.4% $21,164 8.1% $18,007 6.8% $20,280 7.5% Add: Stock-based comp
Slide 25: GAAP to Non-GAAP Reconciliation — Free Cash Flow
GAAP to Non-GAAP Reconciliation — Free Cash Flow As a % of As a % of As a % of ($ 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 26: GAAP to Non-GAAP Reconciliation — EPS Outlook
GAAP to Non-GAAP Reconciliation — EPS Outlook Three Months Ended Fiscal Year Ended October 31, 2024 January 31, 2025 GAAP net income per share attributable to common stockholders range, diluted $0.07 - $0.08 $0.31 - $0.33 Stock-based compensation 0.36 1.43 Acquired intangible asset amortization 0.01
Slide 27: GAAP to Non-GAAP Reconciliation — Operating Margin Outlook
GAAP to Non-GAAP Reconciliation — Operating Margin Outlook Three Months Ended Fiscal Year Ended October 31, 2024 January 31, 2025 GAAP operating margin 7.5% 7.0% Add: Stock-based compensation 19.5% 19.5% Add: Acquired intangible assets amortization 0.5% 0.5% Add: Other (1) 0.5% 0.5% Non-GAAP operati