Box: Fiscal 4Q15 Financial Results

Box, Inc. announced financial results for the fiscal fourth quarter and full year ended January 31, 2015.

“The opportunity to transform how people work has never been greater, with organizations demanding technology that helps employees be more mobile and collaborative, while keeping information secure,” said Aaron Levie, co-founder and CEO. “Box’s solid fiscal 2015 results – with 74% revenue growth year over year – highlight our continued execution as we help our more than 45,000 customers transition to the cloud and strengthen our position as the secure platform of choice for enterprise content collaboration.”

“This past year we’ve made significant progress on our path to profitability, as evidenced by a 58 point improvement year over year in non-GAAP operating margin in fiscal 2015,” said Dylan Smith, co-founder and CFO. “We’re committed to managing the business to achieve profitability, and we have a strong balance sheet to fund this transition.”

Fiscal Fourth Quarter Financial Highlights

• Revenue was $62.6 million, an increase of 61% from $38.8 million in the fourth quarter of fiscal 2014.
• Billings were $82.0 million, an increase of 33% from $61.5 million in the fourth quarter of fiscal 2014.
• GAAP operating loss was $45.8 million, or 73% of revenue. This compares to GAAP operating loss of $40.2 million, or 103% of revenue, in the fourth quarter of fiscal 2014. Non-GAAP operating loss in the fourth quarter of fiscal 2015 was $32.2 million, or 51% of revenue. This compares to non-GAAP operating loss of $35.2 million, or 91% of revenue, in the fourth quarter of fiscal 2014.
• GAAP net loss per share attributable to common stockholders, basic and diluted was $2.64 on 20.0 million shares outstanding, compared to $3.46 in the fourth quarter of fiscal 2014 on 12.6 million shares outstanding. Non-GAAP net loss per share attributable to common stockholders, basic and diluted, in the fourth quarter of fiscal 2015 was $1.65, compared to $2.85 in the fourth quarter of fiscal 2014.
• Net cash used in operating activities totaled $15.6 million, compared to $22.6 million in the fourth quarter of fiscal 2014.

Fiscal Year 2015 Financial Highlights

• Revenue was $216.4 million, an increase of 74% from $124.2 million in fiscal year 2014.
• Billings were $246.4 million, an increase of 41% from $174.2 million in fiscal year 2014.
• GAAP operating loss was $166.7 million, or 77% of revenue. This compares to GAAP operating loss of $158.8 million, or 128% of revenue, in fiscal year 2014. Non-GAAP operating loss in fiscal year 2015 was $127.2 million, or 59% of revenue. This compares to non-GAAP operating loss of $145.2 million, or 117% of revenue, in fiscal year 2014.
• GAAP net loss per share attributable to common stockholders, basic and diluted, was $11.48 on 15.9 million shares outstanding, compared to $14.89 in fiscal year 2014 on 11.3 million shares outstanding. Non-GAAP net loss per share attributable to common stockholders, basic and diluted, in fiscal year 2015 was $8.13, compared to $12.91 in fiscal year 2014.
• Net cash used in operating activities totaled $84.9 million, compared to $91.8 million in fiscal year 2014.
• Cash and cash equivalents were $330.4 million as of January 31, 2015.

Business Highlights

• More than 45,000 customers globally including companies such as Astra Zeneca, Eli Lily, General Electric, The Gap, Safeway, Ebay, Boston Scientific, Nationwide, Toyota, and Warner Music Group.
• Paying customers include over 50% of the Fortune 500 and over 22% of the Global 2000.
• Continued to invest heavily in advancing security for managing content in the cloud at scale, launching: Box Trust – a network of more than 19 security partners and solutions; Box Enterprise Key Management – a breakthrough in cloud content management that gives enterprises full control over their encryption keys while still enabling the capabilities that make Box delightful to use for users; and; Box Data Retention Management – technology that enables organizations to comply with record retention requirements set by financial regulators by securing the creation and modification of documents.
• Introduced Box for Financial Services, the latest Box for Industries offering, which focuses on developing tailored solutions and partnerships for vertical markets. It combines key features like watermarking, Information Rights Management, Data Retention Management, and partnerships with companies like Bloomberg Vault to help Financial Services companies move their content to the cloud. In Spring 2015, Box will allow customers to meet FINRA regulatory compliance standards
• Was named an inaugural member of the new Microsoft Cloud Storage Partner Program, enabling the Box content platform to support native integrations with both Office for iPad and iPhone, as well as for Office Online.

Outlook

• Q1 FY16 Guidance: Revenue is expected to be in the range of $63 to $64 million, and non-GAAP operating loss as a%age of revenue is expected to be in the range of (56%) to (58%).
• Full Year FY16 Guidance: Revenue is expected to be in the range of $281 to $285 million, and non-GAAP operating loss as a%age of revenue is expected to be in the range of (50%) to (52%).