Box Inc Reports Second Quarter Fiscal Year 2025 Financial Results

Intellectia.AI2024-08-28

Illustration by Intellectia.AI

Box, Inc. Reports Second Quarter Fiscal Year 2025 Financial Results

Box, Inc. (NYSE:BOX) announced its financial results for the second quarter of fiscal year 2025, ending on July 31, 2024.

Financial Summary

Consolidated Statements

Metrics	Q2 FY25	Q2 FY24	Year-over-Year% Change	Consensus Estimates	Consensus vs Actual
Revenue	$270.0M	$261.4M	+3%	$269.18M	Above Estimates
GAAP Net Income Per Share	$0.10	$0.04	+150%	N/A	N/A
Non-GAAP Net Income Per Share	$0.44	$0.36	+22%	$0.40	Above Estimates
GAAP Operating Margin	7.5%	3.8%	+97.37%	N/A	N/A
Non-GAAP Operating Margin	28.4%	24.8%	+14.52%	N/A	N/A
Billings	$256.4M	$232.5M	+10%	N/A	N/A
Net Cash from Operating Activities	$36.3M	$32.7M	+11%	N/A	N/A
Free Cash Flow (Non-GAAP)	$32.7M	$20.6M	+59%	N/A	N/A

Interpretation : Box, Inc. posted a robust financial performance for Q2 FY25. The company exceeded revenue and non-GAAP EPS estimates set by consensus, driven by accelerated billings growth and record operating margins.

Recent Business Highlights

Delivered new wins or expansions with leading organizations across multiple industries.
Announced the acquisition of Alphamoon's AI-powered, intelligent document processing (IDP) technology.
Introduced unlimited end-user Box AI queries for customers on Enterprise Plus plans.
Unveiled new integration with GPT-4, support for image and spreadsheet files in Box AI, and Box AI for Metadata API.
Expanded strategic partnership with Slack to offer secure AI to enterprise content.
Hosted major events like BoxWorks Tokyo 2024 and AI Disrupt in London.
Announced upcoming BoxWorks on November 12, 2024.
Recognized as one of PEOPLE's "100 Companies That Care" and ranked #10 on Fortune's "100 Best Large Workplaces for Millennials" for 2024.

Comments from Officers

Aaron Levie, Co-founder and CEO, emphasized the evolution towards an era of Intelligent Content Management led by Box AI initiatives and strategic acquisitions like Alphamoon. CFO Dylan Smith highlighted record gross margins, operating margins, and EPS, suggesting these results affirm the strength of Box's business model and strategic investments.

Share Repurchase Program

Repurchased approximately 3.9 million shares for $102 million.
Announced a $100 million expansion to the stock repurchase program.

Forward Guidance

Q3 FY25

Revenue: $274 million to $276 million.
GAAP EPS: $0.07 to $0.08.
Non-GAAP EPS: $0.41 to $0.42.

FY25

Revenue: $1.086 billion to $1.09 billion.
GAAP EPS: $0.31 to $0.33.
Non-GAAP EPS: $1.64 to $1.66.

Stock Price Movement

Following the earnings release, Box, Inc.'s stock saw a significant increase of approximately 7.93%, reflecting investor confidence in the company's strong financial performance and optimistic outlook.

In summary, Box, Inc. has demonstrated outstanding fiscal health and an innovative edge through Q2 FY25, not only by surpassing Wall Street expectations but through meaningful business expansions and strategic advances in AI technology.