Slide 1: Box is Executing a Clear Strategy to Drive Long-Term Value
box Our PlantoDriveValue Our Director Nominees Engagement with Starboard + What PeopleAreSaying Stockholder Resources Howto Vote fa Box is Executing a Clear oe - - oo Strategy to Drive Long-Term : Value GB Prt ox GB saesconers The Box Board is singularly focused on enhancing value for all of our sto
Slide 2: What People Are Saying: Analyst Commentary
Our Planto Drive Value Our Director Nominees KeyBanc Capital Markets on August 26, 2021 “Box is driving solid cost efficiencies with increased hiring in lower cost geos and better rep productivity from a better mix of multi- product/upsell strategy, generating 61% of revenue from customers with add-
Slide 3: Press Releases & Letters
Press Releases & Letters, Box Reports Strong Fiscal Second Quarter 2022 Financial Results Leading independent Proxy Advisory Firm ISS Recommends Box Stockholders Vote on Box's BLUE Proxy Card Box Illustrates Wide-Spread Industry Analyst Recognition of Significant Operational and Financial Progress B
Slide 4: Box Reports Strong Fiscal Second Quarter 2022 Financial Results
Box Reports Strong Fiscal Second Quarter 2022 Financial Results Reiterates Previously Raised Revenue and Revenue of $214.5 Million, Up 12% Year-Over-Year REDWOOD CITY, Calif. - August , 2021 - today announced preliminary financial results for the second quarter of fiscal year 2022, which ended July
Slide 5: Second Fiscal Quarter FY22 Financial Results
box Second Fiscal Quarter FY22 Financial Results August 25, 2021
Slide 6: 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 the size of its market opportunity, sales productivity, its leadership positi
Slide 7: Revenue acceleration driven by large and multi-product deals
Revenue acceleration driven by large and multi-product deals Q2 revenue growth represents second consecutive quarter of acceleration Revenue up 12% YoY* Note: $ values are shown in millions *Due to rounding, numbers presented may not calculate precisely to percentage change year-over-year.
Slide 8: RPO supports enduring growth and revenue visibility
RPO supports enduring growth and revenue visibility Trajectory reflects stability and signing longer term strategic deals RPO up 27% YoY Note: Remaining performance obligations (RPO) represent, at a point in time, contracted revenue that has not yet been recognized. RPO consists of deferred revenue
Slide 9: Billings and deferred revenue
Billings and deferred revenue Billings up 13%* YoY Deferred revenue up 16%* YoY Note: $values are shown in millions *Reconciliations of billings to revenue, deferred revenue, and contract assets calculated in accordance with GAAP can be found in the Appendix of this presentation.
Slide 10: Gross margin and operating expense
Gross margin and operating expense* Non-GAAP gross margin Up 100 bps YoY Non-GAAP op expense Down 400 bps YoY • Benefit from optimizations to reduce infrastructure costs and improve overall efficiencies. • S&M improved 2 percentage points from improved go-to-market efficiencies • R&D improved 2 perc
Slide 11: Delivering significant operating margin improvements
Delivering significant operating margin improvements Operating leverage accelerates margin expansion Non-GAAP operating margin Up 500 bps YoY Note: A reconciliation of non-GAAP operating to the nearest GAAP financial measures can be found in the Appendix of this presentation.
Slide 12: Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash *“Other” primarily consists of RSU taxes
Slide 13: Share repurchase update
Share repurchase update We completed our modified Dutch Auction tender offer at the end of June, repurchasing approximately 9.2 million shares of Class A common stock, for an aggregate cost of approximately $238 million, On July 9, 2021, the Board of Directors authorized a $260 million Share Repurch
Slide 14: Guidance and Outlook
box Guidance and Outlook
Slide 15: Q3 and fiscal year 2022 guidance
Q3 and fiscal year 2022 guidance Q3 FY22 Guidance Revenue $218M – $219M GAAP EPS (9¢) – (8¢) Non-GAAP EPS (diluted) 20¢ - 21¢ Weighted-average shares used to compute GAAP EPS 154 million Weighted-average shares used to compute non-GAAP EPS (diluted) 162 million GAAP operating margin Approximately (2
Slide 16: Strong revenue growth at scale
Strong revenue growth at scale Driven by customer retention and expansion 3Q FY22 revenue guidance up 12% YoY FY22 revenue guidance up 12% YoY Note: Box adopted the new revenue recognition standard ASC 606 beginning with its fiscal year 2019 using the modified retrospective transition method. The re
Slide 17: Driving margin expansion while building Cloud Content momentum
Driving margin expansion while building Cloud Content momentum Committed to delivering significant improvements to financial profile FY19 FY20 FY21 Revenue Growth + FCF Margin 22% 13% 26% Revenue Growth 20% 14% 11% Gross Margin 74% 71% 73% S&M as a% of Revenue 45% 40% 30% R&D as a% of Revenue 19% 20
Slide 18: Committed to exceeding growth and profitability targets
Committed to exceeding growth and profitability targets Executing a clear and compelling strategy to drive financial results Revenue growth + free cash flow margin (1 ) Notes: Box fiscal year ends January 31. Free Cash Flow Margin is a Non-GAAP financial measure. A reconciliation to its nearest GAAP
Slide 19: Key Customer Metrics
box Key Customer Metrics
Slide 20: Re-accelerating customer momentum and expansion
Re-accelerating customer momentum and expansion Strong momentum in FY22 driving growth in net retention rates Quarterly net retention rate Notes: Box fiscal year ends January 31. 16
Slide 21: Re-accelerating customer momentum and expansion
Re-accelerating customer momentum and expansion Despite COVID-related challenges in FY’21, recent results show the strategy to revamp our GTM engine is producing results New deals over $100K+ up 16% YoY
Slide 22: Shift to multi-product solution selling is paying off
Shift to multi-product solution selling is paying off Consistent improvement in attach rates demonstrates platform’s enhanced strategic value Attach rates for Box Suites (multi-product pricing plans) for $100K+ deals
Slide 23: Customers increasingly adopting products with advanced capabilities
Customers increasingly adopting products with advanced capabilities % of Total Revenue from customers who have purchased at least additional product
Slide 24: Appendix
Appendix
Slide 25: GAAP Revenue to Billings Reconciliation
GAAP Revenue to Billings Reconciliation ($in thousands) Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 GAAP revenue $192,293 $196,003 $198,913 $202,441 $214,486 Deferred revenue, end of period 364,871 354,363 465,613 423,249 422,039Less: Deferred revenue, beginning of period (368,349) (364,871) (354,363) (465,6
Slide 26: GAAP to Non-GAAP Reconciliation – Gross Margin
GAAP to Non-GAAP Reconciliation – Gross Margin As a % of As a % of ($in thousands) Q2FY21 revenue Q2FY22 revenue GAAP gross margin $136,959 71.2% $153,698 71.7% Add: Stock-based compensation 4,401 4,883 Add: Acquired intangible assets-1, 255 amortization Add: Acquisition-related expenses-- Non-GAAP
Slide 27: GAAP to Non-GAAP Reconciliation — Operating Expenses
GAAP to Non-GAAP Reconciliation — Operating Expenses ($in thousands) As a % of As a % of Q2FY21 revenue Q2FY22 revenue GAAP research and development $50,115 26% $52,722 25% Less: Stock-based compensation (14,271) (16,626) Non-GAAP research and development $35,844 19% $36,096 17% GAAP sales and marke
Slide 28: GAAP to Non-GAAP Reconciliation — Operating Expenses
GAAP to Non-GAAP Reconciliation — Operating Expenses As a % of As a % of As a % of ($in thousands) FY19 revenue FY20 revenue FY21 revenue GAAP research and development $163,750 27% $199,750 29% $201,262 26% Less: Stock-based compensation (45,189) (62,565) (61,145) Less: Restructuring activities - (3
Slide 29: GAAP to Non-GAAP Reconciliation — Operating Margin
GAAP to Non-GAAP Reconciliation — Operating Margin As a% of As a% of As a% of As a% of As a% of ($in thousands) Q2FY21 revenue Q3FY21 revenue Q4FY21 revenue Q1FY22 revenue Q2FY22 revenue GAAP operating margin ($7,510) (4%) ($2,614) (1%) ($3,278) (2%) ($10,263) (5%) ($6,110) (3%) Add: Stock-based com
Slide 30: GAAP to Non-GAAP Reconciliation — Free Cash Flow
GAAP to Non-GAAP Reconciliation — Free Cash Flow As a% of As a% of As a% of ($in thousands) FY19 revenue FY20 revenue FY21 revenue GAAP net cash provided by operating activities $55,321 9% $44,713 6% $196,834 26% Less: Purchases of property and equipment, net of proceeds from sales Less: Principal p
Slide 31: GAAP to Non-GAAP Reconciliation — EPS Outlook
GAAP to Non-GAAP Reconciliation — EPS Outlook Three Months Ended Fiscal Year Ended October 31, 2021 January 31, 2022 GAAP net loss per share attributable to common stockholders range, basic and diluted ($0.09 – $0.08) ($0.34 - $0.32) Stock-based compensation 0.28 1.10 Acquired intangible asset amort
Slide 32: GAAP to Non-GAAP Reconciliation — Operating Margin Outlook
GAAP to Non-GAAP Reconciliation — Operating Margin Outlook Three Months Ended Fiscal Year Ended ($in thousands) October 31, 2021 January 31, 2022 GAAP operating margin (2.5%) (3%) Add: Stock-based compensation 19.5% 20% Add: Acquired intangible assets amortization 1% 1% Add: Acquisition-related expe