Box, Inc. (BOX - Free Report) reported first-quarter fiscal 2024 non-GAAP earnings per share of 32 cents, which surpassed the Zacks Consensus Estimate by 18.5%. The figure jumped 39.1% year over year.
Total revenues of $251.9 million beat the consensus mark of $249.3 million. The top line increased 6% year over year (10% growth on a constant currency basis).
Solid momentum in the Content Cloud platform and growing adoption of Enterprise Plus Suites drove top-line growth.
Moreover, strong deal wins with Enterprise Plus were a positive.
Quarter in Detail
Billings were $191.9 million for the reported quarter, improving 11% year over year (15% growth on a constant currency basis).
Deferred revenues were $507 million in the fiscal first quarter, increasing 8% from the prior fiscal-year quarter’s reading.
BOX saw a 69% attach rate for its Suites, down 400 basis points (bps) year over year.
Further, Box’s net retention rate was 106% at the end of the fiscal first quarter.
The remaining performance obligations for the reported quarter were $1.2 billion, up 17% on a year-over-year basis (19% growth on a constant currency basis).
Operating Results
Non-GAAP gross margin was 77.9%, expanding 160 bps from the same-quarter level in the previous year.
Box’s operating expenses of $181.9 million increased 3.6% year over year. As a percentage of revenues, the figure contracted 140 bps from the year-ago quarter’s level to 72.2%.
On a non-GAAP basis, BOX recorded an operating margin of 22.8%, which expanded 220 bps from the prior-year quarter’s level.
Balance Sheet & Cash Flow
As of Apr 30, 2023, cash and cash equivalents were $481.4 million, up from $428.5 million as of Jan 31, 2023. BOX’s short-term investments amounted to $35.6 million, up from $32.8 million in the previous fiscal quarter.
Accounts receivables amounted to $132.7 million at the end of the fiscal first quarter, which decreased from $264.5 million at the end of the prior fiscal quarter.
Non-current debt stood at $369.82 million at the reported quarter’s end compared with $369.35 million at the prior quarter’s end.
Box generated $124.9 million in cash from operations in the fiscal first quarter, up from $92.2 million in the previous fiscal quarter.
Additionally, BOX generated a free cash flow of $108.2 million in the fiscal first quarter.
Guidance
For second-quarter fiscal 2024, Box expects revenues between $260 million and $262 million, suggesting a 7% rise at the high end of the range from the prior fiscal year’s reported figure. Further, the constant currency growth rate is pegged at 11%. The Zacks Consensus Estimate for the same is pegged at $258.67 million.
On a non-GAAP basis, BOX projects earnings per share of 34 to 35 cents. The guidance includes an expected foreign exchange headwind of 5 cents. The Zacks Consensus Estimate for the same is pegged at 33 cents.
The non-GAAP operating margin for the fiscal second quarter is expected to be 24%.
For fiscal 2024, Box anticipates revenues between $1.045 billion and $1.055 billion, indicating an increase of 6% from the last fiscal year’s reading at the high end of the range. Further, the constant currency growth rate is pegged at 10%. The Zacks Consensus Estimate for the stock is pegged at $1.05 billion.
On a non-GAAP basis, BOX expects earnings per share in the band of $1.44-$1.50, including an expected foreign exchange headwind of 20 cents. The consensus mark for the same is pegged at $1.45 per share.
The non-GAAP operating margin for the full fiscal year is expected to be 25.5%.
Zacks Rank & Stocks to Consider
Box currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Ciena (CIEN - Free Report) , CrowdStrike (CRWD - Free Report) and AMETEK (AME - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ciena shares have lost 5.9% in the year-to-date time frame. The Zacks Consensus Estimate for CIEN’s fiscal year 2023 earnings is pegged at $2.81 per share, suggesting an increase of 47.9% from the prior year’s reported figure.
CrowdStrike shares have risen 50.7% in the year-to-date period. The Zacks Consensus Estimate for CRWD’s 2023 earnings is pegged at $2.30 per share, suggesting an increase of 49.4% from the prior year’s reported figure.
AMETEK shares have rallied 5.6% year to date. The Zacks Consensus Estimate for AME’s 2023 earnings is pegged at $6.11 per share, suggesting an increase of 7.57% from the prior year’s reported figure.
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If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
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Box, Inc. (BOX - Free Report) reported first-quarter fiscal 2024 non-GAAP earnings per share of 32 cents, which surpassed the Zacks Consensus Estimate by 18.5%. The figure jumped 39.1% year over year.
Total revenues of $251.9 million beat the consensus mark of $249.3 million. The top line increased 6% year over year (10% growth on a constant currency basis).
Solid momentum in the Content Cloud platform and growing adoption of Enterprise Plus Suites drove top-line growth.
Moreover, strong deal wins with Enterprise Plus were a positive.
Quarter in Detail
Billings were $191.9 million for the reported quarter, improving 11% year over year (15% growth on a constant currency basis).
Deferred revenues were $507 million in the fiscal first quarter, increasing 8% from the prior fiscal-year quarter’s reading.
BOX saw a 69% attach rate for its Suites, down 400 basis points (bps) year over year.
Further, Box’s net retention rate was 106% at the end of the fiscal first quarter.
The remaining performance obligations for the reported quarter were $1.2 billion, up 17% on a year-over-year basis (19% growth on a constant currency basis).
Operating Results
Non-GAAP gross margin was 77.9%, expanding 160 bps from the same-quarter level in the previous year.
Box’s operating expenses of $181.9 million increased 3.6% year over year. As a percentage of revenues, the figure contracted 140 bps from the year-ago quarter’s level to 72.2%.
On a non-GAAP basis, BOX recorded an operating margin of 22.8%, which expanded 220 bps from the prior-year quarter’s level.
Balance Sheet & Cash Flow
As of Apr 30, 2023, cash and cash equivalents were $481.4 million, up from $428.5 million as of Jan 31, 2023. BOX’s short-term investments amounted to $35.6 million, up from $32.8 million in the previous fiscal quarter.
Accounts receivables amounted to $132.7 million at the end of the fiscal first quarter, which decreased from $264.5 million at the end of the prior fiscal quarter.
Non-current debt stood at $369.82 million at the reported quarter’s end compared with $369.35 million at the prior quarter’s end.
Box generated $124.9 million in cash from operations in the fiscal first quarter, up from $92.2 million in the previous fiscal quarter.
Additionally, BOX generated a free cash flow of $108.2 million in the fiscal first quarter.
Guidance
For second-quarter fiscal 2024, Box expects revenues between $260 million and $262 million, suggesting a 7% rise at the high end of the range from the prior fiscal year’s reported figure. Further, the constant currency growth rate is pegged at 11%. The Zacks Consensus Estimate for the same is pegged at $258.67 million.
On a non-GAAP basis, BOX projects earnings per share of 34 to 35 cents. The guidance includes an expected foreign exchange headwind of 5 cents. The Zacks Consensus Estimate for the same is pegged at 33 cents.
The non-GAAP operating margin for the fiscal second quarter is expected to be 24%.
For fiscal 2024, Box anticipates revenues between $1.045 billion and $1.055 billion, indicating an increase of 6% from the last fiscal year’s reading at the high end of the range. Further, the constant currency growth rate is pegged at 10%. The Zacks Consensus Estimate for the stock is pegged at $1.05 billion.
On a non-GAAP basis, BOX expects earnings per share in the band of $1.44-$1.50, including an expected foreign exchange headwind of 20 cents. The consensus mark for the same is pegged at $1.45 per share.
The non-GAAP operating margin for the full fiscal year is expected to be 25.5%.
Zacks Rank & Stocks to Consider
Box currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Ciena (CIEN - Free Report) , CrowdStrike (CRWD - Free Report) and AMETEK (AME - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ciena shares have lost 5.9% in the year-to-date time frame. The Zacks Consensus Estimate for CIEN’s fiscal year 2023 earnings is pegged at $2.81 per share, suggesting an increase of 47.9% from the prior year’s reported figure.
CrowdStrike shares have risen 50.7% in the year-to-date period. The Zacks Consensus Estimate for CRWD’s 2023 earnings is pegged at $2.30 per share, suggesting an increase of 49.4% from the prior year’s reported figure.
AMETEK shares have rallied 5.6% year to date. The Zacks Consensus Estimate for AME’s 2023 earnings is pegged at $6.11 per share, suggesting an increase of 7.57% from the prior year’s reported figure.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
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