News

Box, Inc. BOX reported first-quarter fiscal 2025 non-GAAP earnings per share of 39 cents, which beat the Zacks Consensus Estimate by 8.3%. The figure jumped 21.9% year over year.

Total revenues of $264.66 million surpassed the consensus mark by 1.15%. The top line increased 5% year over year (8% growth on a constant-currency basis).

Solid momentum in the Content Cloud platform and the growing adoption of Enterprise Plus Suites drove top-line growth. The growing momentum of Box AI was also positive.

Q4 in Detail

Billings were $190.5 million for the reported quarter, decreasing 1% year over year (5% growth on a constant-currency basis).

Deferred revenues were $514 million in the fiscal first quarter, increasing 1% from the prior-year quarter (5% growth on a constant-currency basis).

BOX saw an 85% attach rate for its Suites, significantly up from 69% in the year-ago quarter.

Box’s net retention rate was 101% at the end of the fiscal first quarter, down 500 bps year over year due to macroeconomic challenges.

The remaining performance obligations as of Apr 30, 2024, were $1.212 billion, up 3% on a year-over-year basis (8% growth on a constant-currency basis).

Box, Inc. Price, Consensus and EPS Surprise

Box, Inc. price-consensus-eps-surprise-chart | Box, Inc. Quote

Operating Results

The non-GAAP gross margin was 80.2%, expanding 230 bps from the prior-year quarter.

Box’s operating expenses of $188.4 million increased 3.6% year over year. As a percentage of revenues, the figure contracted 100 bps from the year-ago quarter to 71.2%.

On a non-GAAP basis, the company recorded an operating margin of 26.6%, which expanded 380 bps from the prior-year quarter.

Balance Sheet & Cash Flow

As of Apr 30, 2024, cash and cash equivalents were $449.5 million, up from $383.7 million as of Jan 31, 2024.

BOX’s short-term investments amounted to $116.6 million, up from $96.9 million in the previous fiscal quarter.

Accounts receivables amounted to $143.05 million at the end of the fiscal first quarter, which decreased from $281.5 million at the end of the prior quarter.

Non-current debt was pegged at $371.3 million at the reported quarter’s end compared with $370.8 million at the previous quarter’s end.

Box generated $131.2 million in cash from operations in the fiscal first quarter, up from $89.3 million in the previous quarter.

BOX generated a free cash flow of $123.2 million in the reported quarter.

Guidance

For second-quarter fiscal 2025, Box expects revenues between $268 million and $270 million, suggesting a 3% rise at the high end of the range from the prior year’s reported figure. The constant-currency growth rate is pegged at 6%. The Zacks Consensus Estimate for the same is pinned at $270.7 million.

On a non-GAAP basis, BOX projects earnings per share of 40-41 cents. The guidance includes an expected foreign exchange headwind of 4 cents. The Zacks Consensus Estimate for the same is pegged at 39 cents.

The non-GAAP operating margin for the fiscal second quarter is expected to be 27%.

For fiscal 2025, the company revised its revenue guidance downward from $1.08-$1.085 billion to $1.075-$1.08 billion, indicating an increase of 4% from the prior year’s actual at the high end of the range. The constant-currency growth rate is pegged at 7%. The Zacks Consensus Estimate for the same is pinned at $1.08 billion.

BOX raised its guidance for non-GAAP earnings per share from $1.53-$1.57 to $1.54-$1.58. The guidance includes an expected foreign exchange headwind of 15 cents. The Zacks Consensus Estimate for the same is pegged at $1.57 per share.

The non-GAAP operating margin for the full fiscal year is expected to be 27%.

Zacks Rank & Stocks to Consider

Currently, Box carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Dell Technologies DELL, CrowdStrike CRWD and Intuit INTU, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Dell Technologies have gained 8.3% in the year-to-date period. The long-term earnings growth rate for DELL is expected to be 9.50%.

Shares of CrowdStrike have gained 32.8% in the year-to-date period. The long-term earnings growth rate for CRWD is projected at 22.31%.

Shares of Intuit have gained 4.8% in the year-to-date period. The long-term earnings growth rate for INTU is anticipated to be 14.57%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.