Box: Fiscal 2Q22 Preliminary Financial Results

Box, Inc. announced preliminary financial results for the second quarter of fiscal year 2022, which ended July 31, 2021.

“Our strong second quarter preliminary results reflect the acceleration we are continuing to see across the business and we are raising our outlook for the full fiscal year,” said Aaron Levie, co-founder and CEO. “Customers are recognizing the strategic importance of our comprehensive Content Cloud, as reflected in our Net Retention Rate of 106%, up 300 basis points from the first quarter. We were pleased to close 133 new deals over $100K in the first half of fiscal 2022, up 28% year over year. We also continued to deliver on our long-term vision for the Content Cloud with the launch of Box Sign, adding native e-signature capability to our platform. We are extending our leading position in cloud content management and driving our next phase of growth and value creation through the rest of fiscal 2022 and beyond.“

2FQ22 Preliminary Results:
• Revenue of $214 million, up 11% Y/Y, as compared to guidance of $211 million to $212 million, representing 2 consecutive quarters of accelerating revenue growth rates;
• GAAP operating margin of approximately negative 3%, as compared to guidance of a negative 5% to negative 4.5%;
• Non-GAAP operating margin of approximately 20%, as compared to guidance of 18% to 18.5%;
• Billings of approximately $213 million, up 13% Y/Y, as compared to guidance of mid-single digit growth Y/Y;
• Net Retention Rate of approximately 106%, up Q/Q from 103% in 1FQ22;
• An attach rate of over 70% on Suites in deals over $100,000, up from a 49% attach rate in 1FQ22 and a 45% attach rate in 4FQ21; and
• As of August 11, 2021, since the completion of the Modified Dutch Auction Tender Offer, repurchased 2.5 million shares of class A common stock at a weighted average price of $23.68, for a total of $59 million.

Outlook
The company will provide additional guidance when it reports full 2FQ22 financial results on August 25, 2021.

3FQ22 Guidance:
• Revenue is expected to be in the range of $218 million to $219 million, up 11% to 12% Y/Y, representing the third quarter of continued revenue growth acceleration;
• GAAP operating margin is expected to be approximately negative 3.5%; and
• Non-GAAP operating margin is expected to be approximately 20%.

Full Year FY22 Guidance:
• Revenue is expected to be in the range of $856 million to $860 million, up 11% Y/Y, an increase over previous guidance of $845 million to $853 million and a revenue growth acceleration over the prior year;
• GAAP operating margin is expected to be approximately negative 3.0%, an improvement over previous guidance of negative 4%;
• Non-GAAP operating margin is expected to be approximately 19.5%, an increase over previous guidance of 18% to 18.5%; and
• FY22 revenue growth rate combined with FY22 free cash flow margin is expected to be at least 32%, an increase over previous guidance of at least 30%.