We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Box, Inc. (BOX - Free Report) reported fourth-quarter fiscal 2024 non-GAAP earnings per share of 42 cents, which beat the Zacks Consensus Estimate by 10.5%. The figure jumped 13.5% year over year.
Total revenues of $262.88 million lagged the consensus mark of $262.92 million. The top line increased 2% year over year (4% growth on a constant currency basis).
Strength in its go-to-market strategy and growing adoption of multi-product offerings contributed well.
Solid momentum in the Content Cloud platform and the growing adoption of Enterprise Plus Suites drove the top-line growth.
Further, the growing momentum of Box AI was positive. Also, Box witnessed signs of stabilization in IT budgets during the reported quarter, which remained a plus.
However, macroeconomic challenges were major concerns.
Billings were $379.3 million for the reported quarter, increasing 6% year over year (10% growth on a constant currency basis).
Deferred revenues were $586.9 million in the fiscal fourth quarter, increasing 4% from the prior fiscal-year quarter (7% growth on a constant currency basis).
BOX saw an 81% attach rate for its Suites, up 900 basis points (bps) year over year.
Box’s net retention rate was 101% at the end of the fiscal fourth quarter, down 700 bps year over year due to macroeconomic challenges.
The remaining performance obligations as of Jan 31, 2024, were $1.305 billion, up 5% on a year-over-year basis (9% growth on a constant currency basis).
Operating Results
Non-GAAP gross margin was 78.4%, contracting 10 bps from the same-quarter level in the previous year.
Box’s operating expenses of $178.99 million increased 1.8% year over year. As a percentage of revenues, the figure contracted 40 bps from the year-ago quarter’s level to 68.1%.
On a non-GAAP basis, the company recorded an operating margin of 26.7%, which expanded 70 bps from the prior-year quarter’s level.
Balance Sheet & Cash Flow
As of Jan 31, 2024, cash and cash equivalents were $383.7 million, up from $377.9 million as of Oct 31, 2023.
BOX’s short-term investments amounted to $96.9 million, up from $61.8 million in the previous fiscal quarter.
Accounts receivables amounted to $281.5 million at the end of the fiscal fourth quarter, which increased from $166.9 million at the end of the prior fiscal quarter.
Non-current debt was pegged at $370.8 million at the reported quarter’s end compared with $370.3 million at the previous quarter’s end.
Box generated $89.3 million in cash from operations in the fiscal fourth quarter, up from $71.8 million in the previous fiscal quarter.
BOX generated a free cash flow of $81.3 million in the reported quarter.
Guidance
For first-quarter fiscal 2025, Box expects revenues between $261 million and $263 million, suggesting a 4% rise at the high end of the range from the prior fiscal year’s reported figure. The constant currency growth rate is pegged at 7%. The Zacks Consensus Estimate for the same is pinned at $261.89 million.
On a non-GAAP basis, BOX projects earnings per share in the range of 35-36 cents. The guidance includes an expected foreign exchange headwind of 4 cents. The Zacks Consensus Estimate for the same is pegged at 38 cents.
The non-GAAP operating margin for the fiscal first quarter is expected to be 25%.
For fiscal 2025, the company expects revenue in the band of $1.08-$1.085 billion, indicating an increase of 5% from the last fiscal year’s reading at the high end of the range. The constant currency growth rate is pegged at 6%. The Zacks Consensus Estimate for the same is pinned at $1.08 billion.
BOX anticipates non-GAAP earnings per share in the band of $1.53-$1.57, including an expected foreign exchange headwind of 10 cents. The Zacks Consensus Estimate for the same is pegged at $1.70 per share.
The non-GAAP operating margin for the full fiscal year is expected to be 27%.
Image: Shutterstock
BOX Q4 Earnings Surpass Estimates, Revenues Increase Y/Y
Box, Inc. (BOX - Free Report) reported fourth-quarter fiscal 2024 non-GAAP earnings per share of 42 cents, which beat the Zacks Consensus Estimate by 10.5%. The figure jumped 13.5% year over year.
Total revenues of $262.88 million lagged the consensus mark of $262.92 million. The top line increased 2% year over year (4% growth on a constant currency basis).
Strength in its go-to-market strategy and growing adoption of multi-product offerings contributed well.
Solid momentum in the Content Cloud platform and the growing adoption of Enterprise Plus Suites drove the top-line growth.
Further, the growing momentum of Box AI was positive. Also, Box witnessed signs of stabilization in IT budgets during the reported quarter, which remained a plus.
However, macroeconomic challenges were major concerns.
Box, Inc. Price, Consensus and EPS Surprise
Box, Inc. price-consensus-eps-surprise-chart | Box, Inc. Quote
Quarter in Detail
Billings were $379.3 million for the reported quarter, increasing 6% year over year (10% growth on a constant currency basis).
Deferred revenues were $586.9 million in the fiscal fourth quarter, increasing 4% from the prior fiscal-year quarter (7% growth on a constant currency basis).
BOX saw an 81% attach rate for its Suites, up 900 basis points (bps) year over year.
Box’s net retention rate was 101% at the end of the fiscal fourth quarter, down 700 bps year over year due to macroeconomic challenges.
The remaining performance obligations as of Jan 31, 2024, were $1.305 billion, up 5% on a year-over-year basis (9% growth on a constant currency basis).
Operating Results
Non-GAAP gross margin was 78.4%, contracting 10 bps from the same-quarter level in the previous year.
Box’s operating expenses of $178.99 million increased 1.8% year over year. As a percentage of revenues, the figure contracted 40 bps from the year-ago quarter’s level to 68.1%.
On a non-GAAP basis, the company recorded an operating margin of 26.7%, which expanded 70 bps from the prior-year quarter’s level.
Balance Sheet & Cash Flow
As of Jan 31, 2024, cash and cash equivalents were $383.7 million, up from $377.9 million as of Oct 31, 2023.
BOX’s short-term investments amounted to $96.9 million, up from $61.8 million in the previous fiscal quarter.
Accounts receivables amounted to $281.5 million at the end of the fiscal fourth quarter, which increased from $166.9 million at the end of the prior fiscal quarter.
Non-current debt was pegged at $370.8 million at the reported quarter’s end compared with $370.3 million at the previous quarter’s end.
Box generated $89.3 million in cash from operations in the fiscal fourth quarter, up from $71.8 million in the previous fiscal quarter.
BOX generated a free cash flow of $81.3 million in the reported quarter.
Guidance
For first-quarter fiscal 2025, Box expects revenues between $261 million and $263 million, suggesting a 4% rise at the high end of the range from the prior fiscal year’s reported figure. The constant currency growth rate is pegged at 7%. The Zacks Consensus Estimate for the same is pinned at $261.89 million.
On a non-GAAP basis, BOX projects earnings per share in the range of 35-36 cents. The guidance includes an expected foreign exchange headwind of 4 cents. The Zacks Consensus Estimate for the same is pegged at 38 cents.
The non-GAAP operating margin for the fiscal first quarter is expected to be 25%.
For fiscal 2025, the company expects revenue in the band of $1.08-$1.085 billion, indicating an increase of 5% from the last fiscal year’s reading at the high end of the range. The constant currency growth rate is pegged at 6%. The Zacks Consensus Estimate for the same is pinned at $1.08 billion.
BOX anticipates non-GAAP earnings per share in the band of $1.53-$1.57, including an expected foreign exchange headwind of 10 cents. The Zacks Consensus Estimate for the same is pegged at $1.70 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 CrowdStrike (CRWD - Free Report) , Badger Meter (BMI - Free Report) and AMETEK (AME - Free Report) . Each stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of CrowdStrike have gained 146.6% in the past year. The long-term earnings growth rate for CRWD is 36.07%
Shares of Badger Meter have gained 33.5% in the past year. The long-term earnings growth rate for BMI is 12.27%.
Shares of AMETEK have gained 26% in the past year. The long-term earnings growth rate for AME is 9.19%.