Box: Fiscal 4Q21 Financial Results

Box, Inc. announced preliminary financial results for the fourth quarter and full fiscal year ended January 31, 2021.

“In FY21, we achieved a stronger balance of growth and profitability while executing on our vision to deliver the Box Content Cloud, a secure platform for managing the entire content lifecycle in the cloud,” said Aaron Levie, co-founder and CEO. “Growing demand for products like Shield and Relay continues to accelerate adoption of our bundled Suite offerings. We are excited to further expand our product portfolio with Box Sign, Box’s e-signature capability natively embedded in a cloud content management platform built for the enterprise.“

“We are proud to have delivered a combined revenue growth plus free cash flow margin outcome of 26% in fiscal 2021, up from 13% a year ago,” said Dylan Smith, co-founder and CFO. “Our focus on driving profitable growth allowed us to improve operating margins and cash flow this past year. Going forward, we will continue to focus on profitability improvements while investing in our expanded market opportunity to accelerate top line growth.”

4FQ21 Financial Highlights
• Revenue was $198.9 million, an increase of 8% from 4FQ20.
• Remaining performance obligations were $896.9 million, an increase of 17% from 4FQ20.
• Deferred revenue was $465.6 million, an increase of 10% from 4FQ20.
• Billings were $310.1 million, an increase of 10% from 4FQ20.
• GAAP gross profit was $140.3 million, or 71% of revenue. This compares to a GAAP gross profit of $126.9 million, or 69% of revenue, in 4FQ20.
• Non-GAAP gross profit was $145.6 million, or 73% of revenue. This compares to a non-GAAP gross profit of $131.3 million, or 71% of revenue, in 4FQ200.
• GAAP operating loss was $3.3 million, or minus 2% of revenue. This compares to a GAAP operating loss of $28.6 million, or minus 15% of revenue, in 4FQ20.
• Non-GAAP operating income was $36.4 million, or 18% of revenue. This compares to a non-GAAP operating income of $12.3 million, or 7% of revenue, in 4FQ20.
• GAAP net loss per share, basic and diluted,was $0.03 on 159.2 million weighted-average shares outstanding. This compares to a GAAP net loss per share of $0.20 in 4FQ20 on 150.0 million weighted-average shares outstanding.
• Non-GAAP net income per share, diluted, was $0.22. This compares to a non-GAAP net income per share of $0.07 in 4FQ20
• Net cash provided by operating activities was $57.5 million, an increase of 283% from net cash provided by operating activities of $15.0 million in 4FQ20.
• Free cash flow was positive $41.0 million, or 21% of revenue. This compares to free cash flow of $0.0 million in 4FQ20.

FY21 Financial Highlights
• Revenue was $770.8 million, an increase of 11% from FY20.
• Billings were $812.5 million, an increase of 9% from FY20.
• GAAP gross profit was $546.0 million, or 71% of revenue. This compares to a GAAP gross profit of $480.7 million, or 69% of revenue, in FY20.
• Non-GAAP gross profit was $565.0 million, or 73% of revenue. This compares to a Non-GAAP gross profit of $497.5 million, or 71% of revenue, in FY20.
• GAAP operating loss was $37.6 million, or minus 5% of revenue. This compares to a GAAP operating loss of $139.5 million, or minus 20% of revenue, in FY20.
• Non-GAAP operating income was $118.8 million, or 15% of revenue. This compares to a non-GAAP operating income of $9.3 million, or 1% of revenue, in FY20.
• GAAP net loss per share, basic and diluted, was $0.28 on 155.8 million weighted-average shares outstanding. This compares to a GAAP net loss per share of $0.98 in FY20 on 147.8 million weighted-average shares outstanding.
• Non-GAAP net income per share, diluted, was $0.70. This compares to a non-GAAP net income per share of $0.03 in FY20.
• Net cash provided by operating activities totaled $196.8 million. This compares to net cash provided by operating activities of $44.7 million in FY20.
• Free cash flow was positive $120.3 million, or 16% of revenue. This compares to negative $7.2 million in FY20.

Business Highlights Since Last Earnings Release
• Delivered wins and expansions with organizations such as Arena Pharmaceuticals, Asahi Group Holdings, Ltd, Pan-American Life Insurance Group, Talend, TX Office of the Attorney General, Twilio and United Parcel Service of America.
• Acquired e-signature provider SignRequest and unveiled Box Sign, an e-signature capability that will be developed on SignRequest’s technology and natively integrated into Box, enabling customers to digitize important processes, while ensuring their agreements can be securely managed in the Box Content Cloud.
• Announced the new Box Shuttle to make it easier, faster, and less costly to migrate large amounts of content – including permissions and metadata – to the Box Content Cloud.
• Introduced Box for Google Workspace Essentials to help businesses work more seamlessly and securely from anywhere. With this announcement, the company is furthering its commitment to deliver frictionless collaboration and productivity for thousands of joint customers.
• Enhanced the Box for Slack and Box for Cisco WebEx integrations to enable teams to more efficiently and seamlessly share and collaborate on content in Box.
• Recognized as one of Fortune’s 40 Best Large Workplaces in the Bay Area for 2021 and as a Glassdoor Best Places to Work Company in 2021.
• Named to the 2021 Bloomberg Gender-Equality Index. Box is one of 380 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 2021 Human Rights Campaign Corporate Equality Index.
• Announced the opening of new R&D Engineering site in Warsaw, Poland.

Outlook
• 1FQ22 guidance: Revenue is expected to be in the range of $200 million to $201 million. GAAP basic and diluted net loss per share are expected to be in the range of $0.06 to $0.05. Non-GAAP diluted net income per share is expected to be in the range of $0.16 to $0.17. Weighted-average basic and diluted shares outstanding are expected to be approximately 161 million and 166 million, respectively.
• FY22 Guidance: Revenue is expected to be in the range of $840 million to $848 million. GAAP basic and diluted net loss per share are expected to be in the range of $0.25 to $0.20. Non-GAAP diluted net income per share is expected to be in the range of $0.76 to $0.81 Weighted-average basic and diluted shares outstanding are expected to be approximately 164 million and 169 million, respectively.