Box: Fiscal 2Q20 Financial Results

Box, Inc. announced financial results for 2FQ20, which ended July 31, 2019.

“We made significant progress on our key objectives in 2FQ20, as we continued to deliver more products to our customers that enable higher value use cases, while executing on the most compelling product roadmap in our history,” said Aaron Levie, co-founder and CEO. “We drove strong add-on product attach rates of more than 80% across our six-figure deals in Q2. Customers are increasingly adopting Box’s comprehensive Cloud Content Management solutions to protect their most important information with frictionless security and compliance, streamline internal and external collaboration and workflows, and enable a more productive workplace by leveraging a best-of-breed IT stack.”

“We remain focused on driving long-term growth as enterprises implement our more robust product portfolio,” said Dylan Smith, co-founder and CFO. “We continued to deliver operational efficiencies in the second quarter on our path to achieving our first full year of non-GAAP profitability in FY20, and we are committed to delivering meaningful operating margin improvements in FY21 and beyond.“

2FQ20 Highlights
• Revenue was $172.5 million, an increase of 16% from 2FQ19.
• Remaining performance obligations were $640.5 million, an increase of 9% from 2FQ19.
• Deferred revenue was $330.8 million, an increase of 10% from 2FQ19.
• Billings were $172.9 million, an increase of 6% from 2FQ19.
• GAAP operating loss was $36.3 million, or 21% of revenue. This compares to a GAAP operating loss of $37.2 million, or 25% of revenue, in 2FQ19.
• Non-GAAP operating income was $0.5 million, or 0% of revenue. This compares to a non-GAAP operating loss of $6.5 million, or 4% of revenue, in 2FQ19.
• GAAP net loss per share, basic and diluted, was $0.25 on 147.0 million weighted average shares outstanding. This compares to a GAAP net loss per share of $0.27 in 2FQ19 on 140.7 million weighted average shares outstanding.
• Non-GAAP net income per share, diluted, was $0.00 on 153.2 million weighted average diluted shares outstanding. This compares to a non-GAAP net loss per share of $0.05 in 2FQ19.
• Net cash used in operating activities totaled $4.7 million. This compares to net cash used in operating activities of $1.3 million in 2FQ19.
• Free cash flow was negative $19.0 million. This compares to negative $10.3 million in 2FQ19.

3FQ20 Guidance
Revenue is expected to be in the range of $174 million to $175 million. GAAP basic and diluted net loss per share are expected to be in the range of $0.28 to $0.27. Non-GAAP basic and diluted net (loss) income per share are expected to be in the range of $(0.01) to $0.00. Weighted average basic and diluted shares outstanding are expected to be approximately 149 million and 153 million, respectively.

FY20 Guidance
Revenue is expected to be in the range of $690 million to $692 million. GAAP basic and diluted net loss per share are expected to be in the range of $1.03 to $1.01. Non-GAAP basic and diluted net income per share are expected to be in the range of $0.00 to $0.02. The weighted average basic and diluted shares outstanding are expected to be approximately 148 million and 153 million, respectively.