Box: Fiscal 4Q22 Financial Results

Box, Inc. announced preliminary financial results for the fourth quarter and fiscal year 2022, which ended January 31, 2022.

“In FY22, we achieved strong results across all of our financial metrics, executing on our vision for the Box Content Cloud while exceeding our guidance for growth and profitability,” said Aaron Levie, co-founder and CEO. “Businesses today are adopting a digital-first, cloud-delivered focus, reimagining how they work in a world of distributed and hybrid teams. Content is at the center of this shift, and Box is uniquely positioned to capitalize on this opportunity. Our strong execution in FY22 and continued business momentum give us confidence in our ability to drive continued growth while delivering the content cloud platform to our customers.”

“We are proud to have delivered a combined revenue growth plus free cash flow margin outcome of 33% in FY22, ahead of our target and up from 26% a year ago,” said Dylan Smith, co-founder and CFO. “With a sharp focus on delivering profitable growth as we capitalize on our expanded market opportunity, we expect to deliver another year of accelerating revenue growth and expanding operating margins for the full year of FY23.”

4FQ22 Financial Highlights
• Revenue was $233.4 million, a 17% increase from revenue for 4FQ21 of $198.9 million.
• Remaining performance obligations as of January 31, 2022, were $1.1 billion, a 19% increase from remaining performance obligations as of January 31, 2021 of $896.9 million.
• Deferred revenue as of January 31, 2022, was $534.2 million, a 15% increase from deferred revenue as of January 31, 2021 of $465.6 million.
• Billings were $337.9 million, a 9% increase from billings for 4FQ21 of $310.1 million.
• GAAP gross profit was $168.7 million, or 72% of revenue. This compares to a GAAP gross profit of $140.3 million, or 71% of revenue, in 4FQ21.
• Non-GAAP gross profitwas $175.2 million, or 75% of revenue. This compares to a non-GAAP gross profit of $145.6 million, or 73% of revenue, in 4FQ21.
• GAAP operating loss was $0.2 million, or 0% of revenue. This compares to a GAAP operating loss of $3.3 million, or 2% of revenue, in 4FQ21.
• Non-GAAP operating income was $48.5 million, or 21% of revenue. This compares to a non-GAAP operating income of $36.4 million, or 18% of revenue, in 4FQ21.
• GAAP net loss per share attributable to common stockholders, basic and diluted was $0.06 on 148.3 million weighted-average shares outstanding. This compares to a GAAP net loss per share attributable to common stockholders of $0.03 in 4FQ21 on 159.2 million weighted-average shares outstanding.
• Non-GAAP net income per share attributable to common stockholders, diluted was $0.24. This compares to a non-GAAP net income per share attributable to common stockholders, diluted, of $0.22 in 4FQ21.
• Net cash provided by operating activities was $49.2 million. This compares to net cash provided by operating activities of $57.5 million in 4FQ21.
• Free cash flow was $33.3 million. This compares to free cash flow of $41.0 million in 4FQ21.

FY22 Financial Highlights
• Revenue was $874.3 million, a 13% increase from revenue for fiscal year 2021 of $770.8 million and an improvement from FY21’s growth of 11%.
• Billings were $941.9 million, a 16% increase from billings for FY21 of $812.5 million.
• GAAP gross profit was $624.8 million, or 71% of revenue. This compares to a GAAP gross profit of $546.0 million, or 71% of revenue, in FY21.
• Non-GAAP gross profit was $650.1 million, or 74% of revenue. This compares to a non-GAAP gross profit of $565.0 million, or 73% of revenue, in FY21.
• GAAP operating loss was $27.6 million, or 3% of revenue. This compares to a GAAP operating loss of $37.6 million, or 5% of revenue, in FY21.
• Non-GAAP operating income was $173.4 million, or 20% of revenue. This compares to a non-GAAP operating income of $118.8 million, or 15% of revenue, in FY21.
• GAAP net loss per share attributable to common stockholders, basic and diluted, was $0.35 on 155.6 million weighted-average shares outstanding. This compares to a GAAP net loss per share attributable to common stockholders of $0.28 in FY21 on 155.8 million weighted-average shares outstanding.
• Non-GAAP net income per share attributable to common stockholders, diluted, was $0.85. This compares to a non-GAAP net income per share attributable to common stockholders, diluted, of $0.70 in FY21.
• Net cash provided by operating activities was $234.8 million. This compares to net cash provided by operating activities of $196.8 million in FY21.
• Free cash flow was $170.2 million, an increase of 41% from free cash flow of $120.3 million in FY21.

1FQ23 Guidance
Revenue is expected to be in the range of $233 million to $235 million, up 16% Y/Y at the high-end of the range. GAAP operating margin is expected to be approximately 1%, and non-GAAP operating margin is expected to be approximately 21%. GAAP basic and diluted net loss per share attributable to common stockholders are expected to be in the range of $0.05 to $0.04. Non-GAAP diluted net income per share attributable to common stockholders is expected to be in the range of $0.24 to $0.25. Weighted-average basic and diluted shares outstanding are expected to be approximately 146 million and 152 million, respectively.

FY23 Guidance
Revenue is expected to be in the range of $990 million to $996 million, up 14% Y/Y at the high-end of the range, and represents an acceleration from last year’s growth rate of 13%. GAAP operating margin is expected to be approximately 2%, and non-GAAP operating margin is expected to be approximately 22%. GAAP basic and diluted net loss per share attributable to common stockholders are expected to be in the range of $0.07 to $0.03. Non-GAAP diluted net income per share attributable to common stockholders is expected to be in the range of $1.10 to $1.14. Weighted-average basic and diluted shares outstanding are expected to be approximately 148 million and 154 million, respectively.