Box Inc Reports Strong Q1 Earnings with Double-Digit Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Yahoo Finance
- Significant Revenue Growth: Box Inc reported Q1 revenue of $306 million, reflecting an 11% year-over-year increase and a 10% rise in constant currency, marking the company's first double-digit growth in over 12 quarters, indicating a strong rebound in market demand.
- Billings and Net Retention Rate Improvement: Billings totaled $255 million, up 5% year-over-year and 13% in constant currency; the net retention rate increased to 105%, up from 102% last year, demonstrating sustained customer recognition and reliance on Box's products and services.
- Free Cash Flow and Share Buyback: The company achieved free cash flow of $128 million, an 8% year-over-year increase, while repurchasing 4.8 million shares for approximately $114 million, reflecting proactive measures to enhance shareholder value.
- AI Investment and Market Expansion: Box is intensifying investments in AI and workflow automation, expected to drive future growth, while expanding partnerships with leading AI labs and system integrators to further enhance its ecosystem and market reach.
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Analyst Views on BOX
Wall Street analysts forecast BOX stock price to rise
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 25.250
Low
26.00
Averages
36.67
High
45.00
Current: 25.250
Low
26.00
Averages
36.67
High
45.00
About BOX
Box, Inc. is an intelligent content management (ICM) provider. The Company offers Web, mobile and desktop applications of its solution on a single platform, as well as the ability to develop custom applications. Its capabilities include advanced data protection and compliance, modern workflow and collaboration experiences, a flexible and interoperable platform, and integration with advanced artificial intelligence (AI) models. Its advanced data protection and compliance capabilities include global cloud architecture, enterprise-grade security, intelligent threat detection and smart access with Box Shield, and a comprehensive data governance strategy. Its modern workflow and collaboration experiences include intelligent, no-code apps; connected forms; electronic signatures, intelligent portals and automated document generation. Its integration with advanced AI models includes AI platforms, user controls, intelligent documents and model neutrality.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Billings and Net Retention Rate Improvement: Billings totaled $255 million, up 5% year-over-year and 13% in constant currency; the net retention rate increased to 105%, up from 102% last year, demonstrating sustained customer recognition and reliance on Box's products and services.
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- Optimistic Financial Outlook: CFO Dylan Smith indicated that Q2 revenue is expected to be around $319 million with an EPS of approximately $0.39, while raising the FY 2027 revenue guidance to about $1.28 billion, reflecting the company's confidence in future growth.
- Product Delivery and Innovation: Box successfully launched Box Agent and Box Automate in Q1, further solidifying its market position in enterprise data management and AI workflow, which is expected to drive continued customer growth and satisfaction.
- Share Buybacks and Financial Health: The company repurchased 4.8 million shares for approximately $114 million in Q1, demonstrating strong cash flow and commitment to shareholder returns, while also achieving a record free cash flow of $128 million.
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