NYSE$BOX

Box Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Box's Q3 2024 financial results were announced, showing revenue growth and increased profitability

Box reported a 5% year-over-year increase in revenue, reaching $261.5 million. The company's focus on profitable growth led to operating margin expansion and a 16% year-over-year increase in earnings per share. Box is also investing in product innovation, including Box AI and Box Hubs.

  • Revenue increased by 5% year-over-year to $261.5 million.
  • Remaining performance obligations (RPO) grew by 7% year-over-year to $1.131 billion.
  • GAAP gross profit was $192.3 million, representing 73.5% of revenue.
  • Non-GAAP diluted net income per share was $0.36, compared to $0.31 in the prior year.

Headline financials

Total Revenue

$262M

Previous: $250M+4.6%
EPS (adj)

$0.36

Previous: $0.31+16.1%
Billings

$254M

Previous: $258M-1.7%
Capital Expenditures

-$1.95M

No prior period
Free Cash Flow

$10.7M

Previous: $9.91M+7.5%
Net Income

$10.7M

Previous: $9.91M+7.5%
Operating Income

$11.4M

Previous: $13.4M-14.9%
Gross Profit

$192M

Previous: $185M+3.7%
Cash & Equivalents

$378M

Previous: $358M+5.5%
Total Assets

$1.03B

Previous: $1.06B-2.1%
R&D Expense

$61M

No prior period
Stock-Based Comp

$50.9M

Previous: $44.9M+13.5%

Revenue & EPS history

Box · Revenue · Quarterly

$262M

Q3 2024+4.6%vs Q3 2023
Beat estimate in 5 of 13 quarters(38%)
ActualEstimate

Forward guidance

Box expects revenue between $262 million and $264 million for Q4 FY24, representing a 3% year-over-year increase at the high end. GAAP operating margin is expected to be approximately 5.0%, and non-GAAP operating margin is expected to be approximately 25.5%.

Tailwinds

  • Revenue is expected to be in the range of $262 million to $264 million, up 3% year-over-year at the high-end of the range, or 5% growth on a constant currency basis.
  • GAAP operating margin is expected to be approximately 5.0%, and non-GAAP operating margin is expected to be approximately 25.5%.
  • GAAP net income per share attributable to common stockholders is expected to be in the range of $0.05 to $0.06.
  • Non-GAAP diluted net income per share attributable to common stockholders is expected to be in the range of $0.38 to $0.39.
  • Weighted-average diluted shares outstanding are expected to be approximately 147 million.

Headwinds

  • The fiscal fourth quarter gross profit, operating income, and diluted net income per share include a headwind against the company’s expense forecast of approximately $4 million from an anticipated decrease in proceeds from the sale of certain data center equipment as the company completes its migration to the public cloud.
  • In the fiscal fourth quarter, Box modified its Redwood City office lease to reduce the amount of square footage, creating a one-time expense of $1.6 million that will be recognized in Q4.
  • GAAP EPS guidance includes an expected negative impact of $0.03 from unfavorable exchange rates.
  • The equipment proceeds headwind represents an impact of $0.02 to GAAP diluted net income per share.
  • The lease modifications represent a $0.01 impact to GAAP diluted net income per share.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.1%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-1.6%

Avg return

30 days after

52%

23 / 44 earnings

Positive

+17.1%

Q1 2026

Best reaction

-23.2%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026+10.0%+6.4%+0.4%
Q3 2026+6.6%+3.6%-4.4%
Q2 2026+4.4%+4.7%+3.9%
Q1 2026+17.1%+21.2%+8.1%
Q4 2025-3.2%-3.9%-10.9%
Q2 2025+11.4%-0.2%-0.6%
Q1 2025+7.6%+2.8%-2.8%
Q4 2024+6.2%+6.3%-0.9%
Q3 2024-9.5%-9.5%-8.0%
Q2 2024-11.5%-12.9%-20.2%
Q1 2024+1.6%+4.7%+5.9%
Q4 2023-12.3%-14.9%-19.7%
Q3 2023+7.3%+3.4%+14.3%
Q2 2023-3.8%-9.6%-16.8%
Q1 2023+8.1%+5.4%+5.0%
Q4 2022+4.9%+4.6%+13.8%
Q3 2022+6.8%+6.7%+10.8%
Q2 2022-2.8%-1.0%-2.4%
Q1 2022+0.6%+3.5%+8.8%
Q4 2021-1.6%-2.2%+26.4%
Q3 2021-9.5%-9.4%-3.4%
Q2 2021+12.3%+8.9%-3.4%
Q1 2021-0.2%-0.8%+10.0%
Q4 2020+1.6%+12.3%-10.8%
Q3 2020+13.1%+10.7%+4.7%
Q2 2020+3.3%+6.9%+16.7%
Q1 2020-7.1%-5.8%-4.9%
Q4 2019-16.8%-19.8%-20.6%
Q3 2019+4.1%+10.3%-2.9%
Q2 2019-8.8%-5.5%-9.3%
Q1 2019-5.8%-4.2%-8.3%
Q4 2018-23.2%-21.7%-14.4%
Q3 2018-7.7%-13.3%-7.3%
Q2 2018+1.8%-1.1%+0.2%
Q1 2018+10.3%+3.1%-1.8%
Q4 2017-4.7%-5.2%-7.4%
Q3 2017-1.5%-3.7%-9.4%
Q2 2017+5.0%+6.2%+18.3%
Q1 2017-9.7%-6.7%-17.8%
Q4 2016+5.5%
Q3 2016-3.6%
Q2 2016-0.3%
Q1 2016+8.1%
Q4 2015-7.3%
Q3 2015
Q2 2014
Q1 2015
Q4 2014
Q3 2013
Q1 2013
Q4 2012

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