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Box: Fiscal 2Q17 Financial Results

Record revenue of $95.7 million (+30%), with net loss at $38.1 million
This is a Press Release edited by StorageNewsletter.com on 2016.09.05

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(in $ million) 2Q16 2Q17 6 mo. 16 6 mo. 17
Revenue 73.5 95.7 139.1 185.9
Growth   30%   34%
Net income (loss) (50.2) (38.1) (97.5) (76.7)

 Box, Inc. announced financial results for the second quarter of fiscal 2017, which ended July 31, 2016.

"Our strong second quarter results, with revenue growth of 30% and billings growth of 34% year-over-year, reflect our clear differentiation as the leading enterprise content platform," said Aaron Levie, co-founder and CEO. "Our excellent sales execution and traction with new products drove deals with 4,000 new customers and expanded deployments with leaders such as Pfizer, Electronic Arts and Uber."

"We achieved record revenue in the second quarter while delivering cash from operations of negative $5 million, a $17 million improvement from a year ago," said Dylan Smith, co-founder and CFO. "These results demonstrate our ability to capture the natural leverage we have in our business model while continuing to grow at a rapid rate."

Fiscal Second Quarter Financial Highlights

  • Revenue for the second quarter of fiscal 2017 was a record $95.7 million, an increase of 30% from the second quarter of fiscal 2016.
  • Deferred revenue for the second quarter of fiscal 2017 ended at $183.0 million, an increase of 40% from the second quarter of fiscal 2016.
  • Billings in the second quarter of fiscal 2017 were $106.5 million, an increase of 34% from the second quarter of fiscal 2016.
  • GAAP operating loss in the second quarter of fiscal 2017 was $37.9 million, or 40% of revenue. This compares to GAAP operating loss of $49.8 million, or 68% of revenue, in the second quarter of fiscal 2016.
  • Non-GAAP operating loss in the second quarter of fiscal 2017 was $17.9 million, or 19% of revenue. This compares to non-GAAP operating loss of $32.7 million, or 45% of revenue, in the second quarter of fiscal 2016.
  • GAAP net loss per share, basic and diluted, in the second quarter of fiscal 2017 was $0.30 on 126.8 million shares outstanding, compared to $0.42 in the second quarter of fiscal 2016 on 120.4 million shares outstanding. Non-GAAP net loss per share, basic and diluted, in the second quarter of fiscal 2017 was $0.14, compared to $0.28 in the second quarter of fiscal 2016.
  • Net cash used in operating activities in the second quarter of fiscal 2017 totaled $4.9 million. This was a $16.8 million, or 77%, improvement compared to net cash used in operating activities of $21.7 million in the second quarter of fiscal 2016.
  • Free cash flow in the second quarter of fiscal 2017 was negative $8.0 million, compared to negative $39.8 million, in the second quarter of fiscal 2016.
  • Cash, cash equivalents, and restricted cash were $200.5 million as of July 31, 2016, of which $27.1 million was restricted.

Business Highlights since Last Earnings Release

Customer Growth and Momentum:

  • Added over 4,000 paying new customers, and added or expanded deployments with enterprises like Pfizer, Autodesk, Electronic Arts, the Federal Communications Commission, London Met University, Perkins+Will Global, Telegraaf Media Groep, Western Union, Uber.   
  • Grew paying customer base to 66,000 businesses.
  • Announced that Box was positioned as a Leader in Gartner's 2016 Magic Quadrant for Enterprise File Synchronization and Sharing (EFSS) for the third consecutive year.

Product Innovation and Partnerships:

  • Announced Box Zones will support regional storage in Australia and Canada. Box Zones enables businesses around the globe to adopt Box, while providing the choice to store data regionally in Australia, North America, Europe or Asia.
  • Announced Box Shuttle, a new service that enables organizations to simply and securely migrate large amounts of content into the Box platform.
  • Released new and updated Box Platform features for developers, including image and document annotations and Box activity monitoring.
  • Announced that more than 100 companies to date have joined the Box Partner Platform Program since its launch in April 2015.
  • Introduced Legal Holds as part of the Box Governance offering, allowing organizations to put a hold on content stored in Box which enables defensible discovery on all Box content.
  • Announced that Box complies with ISO 27018, the standard for protecting personally identifiable information (PII) in the cloud, set forth by the International Standards Organization.
  • Released new enhancements to Box Accelerator technology, improving upload speeds by two to six times faster than before for global customers.

Outlook

  • Issued Q3 FY17 Guidance: Revenue is expected to be in the range of $100 million to $101 million. GAAP and non-GAAP basic and diluted earnings per share is expected to be in the range of ($0.36) to ($0.35) and ($0.20) to ($0.19), respectively. Weighted average basic and diluted shares outstanding is expected to be approximately 128 million.
  • Raised Full Year FY17 Guidance: Revenue is expected to be in the range of $394 million to $396 million, raised from previous guidance of $391 million to $395 million. GAAP basic and diluted earnings per share is expected to be in the range of ($1.30) to ($1.28), raised from previous guidance of ($1.43) to ($1.40). Non-GAAP basic and diluted earnings per share is expected to be in the range of ($0.69) to ($0.67), raised from previous guidance of ($0.78) to ($0.75). Weighted average basic and diluted shares outstanding is expected to be approximately 127 million.

To read the earnings call transcript

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