Box: Fiscal 4Q20 Financial Results

Box, Inc. announced financial results for 4FQ20 and FY20, which ended January 31, 2020.

It reports revenue of $696 million for FY20, up 14% Y/Y, and delivers first year of non-GAAP profitability

“In fiscal 2020, we launched two major new products, Box Relay and Box Shield, building out our multi-product platform and solidifying our leadership in the cloud content management market,” said Aaron Levie, co-founder and CEO. “With these added capabilities, we are seeing more and more of our customers adopt the full power of Box through our Enterprise Suite offering. Looking ahead to FY21, we are focused on driving healthy growth and improved profitability.”

“We delivered strong financial results on both the top and bottom line in 4FQ20, with record business coming from our add-on products,” said Dylan Smith, co-founder and CFO. “We delivered operational efficiencies and achieved our first full year of non-GAAP profitability in FY20, and we are committed to delivering significant improvements in operating margin in FY21 and beyond.”

4FQ20 Highlights
• Revenue was $183.6 million, an increase of 12% from 4FQ19.
• Remaining performance obligations as of January 31, 2020 were $767.8 million, an increase of 12% from 4FQ19.
• Deferred revenue as of January 31, 2020 was $423.8 million, an increase of 13% from 4FQ19.
• Billings for 4FQ20 were $281.9 million, an increase of 19% from 4FQ19.
• GAAP operating loss in 4FQ20 was $28.6 million, or 15% of revenue. This compares to a GAAP operating loss of $21.7 million, or 13% of revenue, in 4FQ19.
• Non-GAAP operating income in 4FQ20 was $12.3 million, or 7% of revenue. This compares to a non-GAAP operating income of $8.5 million or 5% of revenue in 4FQ19.
• GAAP net loss per share, basic and diluted in 4FQ20 was $0.20 on 150 million weighted-average shares outstanding. This compares to a GAAP net loss per share of $0.14 in 4FQ19 on 144 million weighted-average shares outstanding.
• Non-GAAP net income per share, diluted, in 4FQ20 was $0.07. This compares to a non-GAAP net income per share of $0.06 in 4FQ19.
• Net cash provided by operating activities in 4FQ20 totaled $15.0 million. This compares to net cash provided by operating activities of $31.3 million in 4FQ19.
• Free cash flow in 4FQ20 was $0.0 million. This compares to positive $21.0 million in 4FQ19.

FY20 Financial Highlights
• Revenue was $696.3 million, an increase of 14% from FY19.
• Billings were $745.1 million, an increase of 11% from FY19.
• GAAP operating loss was $139.5 million, or 20% of revenue. This compares to a GAAP operating loss of $134.2 million or 22% of revenue in FY19.
• Non-GAAP operating income was $9.3 million, or 1% of revenue. This compares to a non-GAAP operating loss of $14.9 million or 2% of revenue in FY19.
• GAAP net loss per share, basic and diluted was $0.98 on 148 million weighted-average shares outstanding. This compares to a GAAP net loss per share of $0.95 in FY19 on 141 million weighted-average shares outstanding.
• Non-GAAP net income per share, diluted was $0.03. This compares to a non-GAAP net loss per share of $0.12 in FY19.
• Net cash provided by operating activities totaled $44.7 million. This compares to net cash provided by operating activities of $55.3 million in FY19.
• Free cash flow was negative $7.2 million. This compares to positive $13.8 million in FY19.

Business Highlights since last earnings release
• Delivered wins and expansions with organizations such as American Homes 4 Rent, ATB Financial, Government of District of Columbia, Macquarie Bank in Australia, Rodan + Fields, Sekisui House, US Forest Service, and VICE Media.
• Launched automated classification with Box Relay, allowing customers to auto-apply pre-established classifications to content as an outcome of a Relay workflow and auto-trigger Relay workflows based on changes in content classification.
• Launched enhancements to the Box admin console, making it easier for administrators to view and manage all of their applications integrated with Box or developed with Box in one place.
• Announced the availability of the Box Shield and Splunk integration to power automated threat detection and response, giving customers deeper visibility into content access patterns.
• Launched enhancements to Box Shield, including an updated dashboard, providing an visual summary of Shield alerts, and an improved end-user classification experience to help users understand the policies that will be enforced when classifying a file or folder.
• Launched a new Box integration with Zoom, enabling users to share and collaborate on content in Box without having to leave the Zoom application.
• Named to the 2020 Bloomberg Gender-Equality Index. The firm is one of 325 global companies included in the index, which tracks the financial performance of public companies committed to supporting gender equality.
• Received a top score of 100 on the 2020 Human Rights Campaign Corporate Equality Index (CEI).
• Recognized as one of Fortune’s 100 Best Workplaces for Diversity, Best Workplaces in the Bay Area, and 100 Best Companies to Work For for 2020.

1FQ21 guidance:
Revenue is expected to be in the range of $183.0 million to $184.0 million. GAAP basic and diluted net loss per share are expected to be in the range of $0.25 to $0.23. Non-GAAP diluted net income per share is expected to be in the range of $0.04 to $0.06. Weighted-average basic and diluted shares outstanding are expected to be approximately 151 million and 157 million, respectively.

FY21 guidance:
Revenue is expected to be in the range of $771.0 million to $777.0 million. GAAP basic and diluted net loss per share are expected to be in the range of $0.78 to $0.71. Non-GAAP diluted net income per share is expected to be in the range of $0.38 to $0.44. Weighted-average basic and diluted shares outstanding are expected to be approximately 154 million and 160 million, respectively.