Slide 1: First Fiscal Quarter FY25 Financial Results
First Fiscal Quarter FY25 Financial Results May 28, 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 5% YoY Revenue up o nst a nt currency) (up 8% in c $265 $262 $263 $261 $252 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 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 3% YoY (up 8% in constant currency) $1,305 $1,212 $1,179 $1,138 $1,131 Long-Term RPO ($M) $539 $478 $496 $458 $445 Short-Term RPO ($M) $701 $680 $686 $766 $716 Q1'24
Slide 5: Billings and deferred revenue
Billings and deferred revenue Billings down 1%* YoY Deferred revenue up 1%* YoY (up 5% in constant currency) (up 5% in constant currency) $379 $587 $507 $514 $479 $472 $254 $233 $192 $190 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Note: $ values are shown in millions. 5 *Reconciliat
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 230 bps YoY 80.2% 77.9% Q1'24 Q1'25 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 380 bps YoY 26.7% 26.6% 24.8% 24.7% 22.8% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 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 $ 131 $ 567 $ 32 $1 $ 12 $ 481 Q4'24 CFO Shares CAPEX & Other* Q1'25 Repurchased Cap Lease Payments *“Other” primarily consists of RSU taxes, capitalized internal-use software costs, and effects of exchange rate changes on cash, par
Slide 9: Share repurchase program
Share repurchase program • In Q1, the Company repurchased approximately 1.4 million shares of Box’s Class A common stock for approximately $39 million. • As of April 30, 2024, the Company had approximately $125 million of remaining Board-approved buyback capacity under the current plan. • On March 4
Slide 10: Resilient business model focused on driving growth and profitability
Resilient business model focused on driving growth and profitability FY’22 FY’23 FY’24 Q1’25 Annual Revenue Growth + FCF Margin 33% 37% 31% N/A YoY Revenue Growth 13% 13% 5% 5% Gross Margin 74% 77% 77% 80% S&M as a % of Revenue 28% 28% 27% 28% R&D as a % of Revenue 17% 18% 17% 17% G&A as a % of Reve
Slide 11: Guidance and Outlook
box Guidance and Outlook
Slide 12: Q2 and fiscal year 2025 guidance
Q2 and fiscal year 2025 guidance Q2’25 FY25 Q2’25 FY25 (constant currency) (constant currency) Revenue $268M – $270M - $1.075B – $1.080B - year-over-year growth +3% at the high end +6% +4% at the high end +7% GAAP EPS (diluted) 6¢ –7¢ 10¢ –11¢ 20¢ – 24¢ 35¢ – 39¢ Non-GAAP EPS (diluted) 40¢ - 41¢ 44¢
Slide 13: Delivering revenue growth at scale
Delivering revenue growth at scale Offset by FX headwinds Q2 FY25 revenue guidance up 3% YoY1 FY25 revenue guidance up 4% YoY1 (Up 6% YoY in constant currency) (Up 7% in constant currency) $1,075-$1,080 $268-$270 $1,038 $265 $991 $261 $262 $263 $874 $771 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 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 106% 103% 102% 101% 101% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 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% 56% 51% 48% 47% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 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 1,800 1,740 1,770 1,680 1,700 +7% YoY Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 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 85%, up 1600 bps 85% 69% 44 35 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Number of new Suites deals > $100k Suites attach rate 18
Slide 19: Appendix
Appendix
Slide 20: Estimated Q2 and fiscal year 2025 preferred share impact summary
Estimated Q2 and fiscal year 2025 preferred share impact summary Q2 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 $30.0M - $31.0M shareholders The impact from the above items w
Slide 21: GAAP Revenue to Billings Reconciliation
GAAP Revenue to Billings Reconciliation ($ in thousands) Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 GAAP revenue $251,898 $261,428 $261,537 $262,878 $264,658 Deferred revenue, end of period 507,385 479,293 471,963 513,572 586,871 Less: Deferred revenue, beginning (586,871) of period (566,630) (507,385) (479
Slide 22: GAAP to Non-GAAP Reconciliation – Gross Margin
GAAP to Non-GAAP Reconciliation – Gross Margin As a % of As a % of ($ in thousands) Q1FY24 revenue Q1FY25 revenue GAAP gross margin $190,247 75.5% $206,406 78.0% Add: Stock-based compensation 4,485 4,621 Add: Acquired intangible assets 1,452 1,152 amortization Add: Workforce reorganization - - Non-G
Slide 23: GAAP to Non-GAAP Reconciliation — Operating Expenses
GAAP to Non-GAAP Reconciliation — Operating Expenses As a % of As a % of As a % of As a % of ($ in thousands) FY22 revenue FY23 revenue FY24 revenue Q1FY25 revenue GAAP research and development $218,523 25% $243,529 25% $248,767 24% $62,673 24% Less: Stock-based compensation (68,063) (68,900) (70,24
Slide 24: GAAP to Non-GAAP Reconciliation — Operating Margin
GAAP to Non-GAAP Reconciliation — Operating Margin As a % of As a % of As a % of As a % of As a % of ($ in thousands) Q1FY24 revenue Q2FY24 revenue Q3FY24 revenue Q4FY24 revenue Q1FY25 revenue GAAP operating margin $8,335 3.3% $9,875 3.8% $11,379 4.4% $21,164 8.1% $18,007 6.8% Add: Stock-based compe
Slide 25: GAAP to Non-GAAP Reconciliation — Free Cash Flow
GAAP to Non-GAAP Reconciliation — Free Cash Flow As a % of As a % of As a % of ($ 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 July 31, 2024 January 31, 2025 GAAP net income per share attributable to common stockholders range, diluted $0.06 - $0.07 $0.20 - $0.24 Stock-based compensation 0.37 1.45 Acquired intangible asset amortization 0.01 0.
Slide 27: GAAP to Non-GAAP Reconciliation — Operating Margin Outlook
GAAP to Non-GAAP Reconciliation — Operating Margin Outlook Three Months Ended Fiscal Year Ended July 31, 2024 January 31, 2025 GAAP operating margin 6.0% 6.5% Add: Stock-based compensation 20.5% 20.0% Add: Acquired intangible assets amortization 0.5% 0.5% Non-GAAP operating margin 27.0% 27.0% 27