Box, Inc. ( BOX Quick Quote 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 Quick Quote CIEN - Free Report) , CrowdStrike ( CRWD Quick Quote CRWD - Free Report) and AMETEK ( AME Quick Quote 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.