We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Box, Inc. (BOX - Free Report) reported fourth-quarter fiscal 2023 non-GAAP earnings per share of 37 cents, which surpassed the Zacks Consensus Estimate by 8.8%. The figure jumped 54.2% year over year.
Total revenues of $256.5 million surpassed the consensus mark of $256.3 million. The top line increased 10% year over year (15% growth on a constant currency basis).
Strength in Content Cloud and growing adoption of Enterprise Plus Suites drove the top line despite macroeconomic headwinds.
Moreover, strong deal wins with Enterprise Plus were a positive.
Billings were $357.1 million for the reported quarter, improving 6% year over year (9% growth on a constant currency basis).
Deferred revenues were $567 million in the fiscal fourth quarter, increasing 6% from the prior fiscal-year quarter’s reading.
BOX saw a 72% attach rate for its Enterprise Plus Suites, owing to increasing demand for multi-product suite offerings. Nearly 46% of revenues were generated from suite sales compared with 35% in the year-ago period.
Further, Box’s net retention rate was 106% at the end of the fiscal fourth quarter.
The remaining performance obligations for the reported quarter were $1.24 billion, up 16% on a year-over-year basis (21% growth on a constant currency basis).
Operating Results
Non-GAAP gross margin was 78.5%, expanding 340 bps from the same-quarter level in the previous year.
Box’s operating expenses of $175.8 million increased 4.1% year over year. As a percentage of revenues, the figure contracted 380 bps from the year-ago quarter’s level to 68.5%.
On a non-GAAP basis, BOX recorded an operating margin of 26%, which expanded 520 bps from the prior-year quarter’s level.
Balance Sheet & Cash Flow
As of Jan 31, 2023, cash and cash equivalents were $428.5 million, up from $358.1 million as of Oct 31, 2022. BOX’s short-term investments amounted to $32.8 million, down from $44.6 million in the previous fiscal quarter.
Accounts receivables amounted to $264.5 million at the end of the fiscal fourth quarter, which increased from $176.6 million at the end of the prior fiscal quarter.
Non-current debt stood at $369.35 million at the reported quarter-end compared with $368.9 million at the prior quarter-end.
Box generated $92.2 million in cash from operations in the fiscal fourth quarter, up from $69.7 million in the previous fiscal quarter.
Additionally, BOX generated a free cash flow of $74.7 million in the fiscal fourth quarter.
Guidance
For first-quarter fiscal 2024, Box expects revenues between $248 million and $250 million, suggesting a 5% 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 10%. The Zacks Consensus Estimate for the same is pegged at $260.41 million.
On a non-GAAP basis, BOX projects earnings per share of 26 to 27 cents. The guidance includes an expected foreign exchange headwind of 6 cents. The Zacks Consensus Estimate for the same is pegged at 30 cents.
The non-GAAP operating margin for the fiscal first quarter is expected to be 21%.
For fiscal 2024, Box anticipates revenues between $1.05 billion and $1.06 billion, indicating an increase of 7% 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 $1.08 billion.
On a non-GAAP basis, BOX expects earnings per share in the band of $1.42-$1.48, which includes an expected foreign exchange headwind of 14 cents. The consensus mark for the same is pegged at $1.43 per share.
The non-GAAP operating margin for the full fiscal year is expected to be 25%.
Image: Shutterstock
Box (BOX) Q4 Earnings Beat Estimates, Revenues Increase Y/Y
Box, Inc. (BOX - Free Report) reported fourth-quarter fiscal 2023 non-GAAP earnings per share of 37 cents, which surpassed the Zacks Consensus Estimate by 8.8%. The figure jumped 54.2% year over year.
Total revenues of $256.5 million surpassed the consensus mark of $256.3 million. The top line increased 10% year over year (15% growth on a constant currency basis).
Strength in Content Cloud and growing adoption of Enterprise Plus Suites drove the top line despite macroeconomic headwinds.
Moreover, strong deal wins with Enterprise Plus were a positive.
Box, Inc. Price, Consensus and EPS Surprise
Box, Inc. price-consensus-eps-surprise-chart | Box, Inc. Quote
Quarter in Detail
Billings were $357.1 million for the reported quarter, improving 6% year over year (9% growth on a constant currency basis).
Deferred revenues were $567 million in the fiscal fourth quarter, increasing 6% from the prior fiscal-year quarter’s reading.
BOX saw a 72% attach rate for its Enterprise Plus Suites, owing to increasing demand for multi-product suite offerings. Nearly 46% of revenues were generated from suite sales compared with 35% in the year-ago period.
Further, Box’s net retention rate was 106% at the end of the fiscal fourth quarter.
The remaining performance obligations for the reported quarter were $1.24 billion, up 16% on a year-over-year basis (21% growth on a constant currency basis).
Operating Results
Non-GAAP gross margin was 78.5%, expanding 340 bps from the same-quarter level in the previous year.
Box’s operating expenses of $175.8 million increased 4.1% year over year. As a percentage of revenues, the figure contracted 380 bps from the year-ago quarter’s level to 68.5%.
On a non-GAAP basis, BOX recorded an operating margin of 26%, which expanded 520 bps from the prior-year quarter’s level.
Balance Sheet & Cash Flow
As of Jan 31, 2023, cash and cash equivalents were $428.5 million, up from $358.1 million as of Oct 31, 2022. BOX’s short-term investments amounted to $32.8 million, down from $44.6 million in the previous fiscal quarter.
Accounts receivables amounted to $264.5 million at the end of the fiscal fourth quarter, which increased from $176.6 million at the end of the prior fiscal quarter.
Non-current debt stood at $369.35 million at the reported quarter-end compared with $368.9 million at the prior quarter-end.
Box generated $92.2 million in cash from operations in the fiscal fourth quarter, up from $69.7 million in the previous fiscal quarter.
Additionally, BOX generated a free cash flow of $74.7 million in the fiscal fourth quarter.
Guidance
For first-quarter fiscal 2024, Box expects revenues between $248 million and $250 million, suggesting a 5% 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 10%. The Zacks Consensus Estimate for the same is pegged at $260.41 million.
On a non-GAAP basis, BOX projects earnings per share of 26 to 27 cents. The guidance includes an expected foreign exchange headwind of 6 cents. The Zacks Consensus Estimate for the same is pegged at 30 cents.
The non-GAAP operating margin for the fiscal first quarter is expected to be 21%.
For fiscal 2024, Box anticipates revenues between $1.05 billion and $1.06 billion, indicating an increase of 7% 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 $1.08 billion.
On a non-GAAP basis, BOX expects earnings per share in the band of $1.42-$1.48, which includes an expected foreign exchange headwind of 14 cents. The consensus mark for the same is pegged at $1.43 per share.
The non-GAAP operating margin for the full fiscal year is expected to be 25%.
Zacks Rank & Stocks to Consider
Box currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Agilent Technologies (A - Free Report) and AMETEK (AME - Free Report) . While Arista Networks sports a Zacks Rank #1 (Strong Buy), Agilent and AMETEK carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has lost 16.7% in the past year. The long-term earnings growth rate for ANET is currently projected at 14.2%.
Agilent’s shares have lost 7.9% in the past year. A’s long-term earnings growth rate is currently projected at 10%.
AMETEK’s shares have gained 10.3% in the past year. The long-term earnings growth rate for AME is currently projected at 8.8%.