Box Reports Strong Fourth Quarter and Fiscal 2022 Financial Results
Box reported a strong fiscal 2022 with a 17% revenue growth year-over-year, reaching $874.3 million. The fourth quarter saw revenues of $233.4 million, a 72% GAAP gross profit margin, and non-GAAP operating income of 21%. Box achieved a 33% combined revenue growth and free cash flow margin. For Q1 FY23, Box anticipates revenue of $233 million to $235 million, a 16% increase year-over-year, and full-year revenue guidance of $990 million to $996 million, reflecting ongoing growth momentum.
- Revenue growth of 17% year-over-year in Q4 FY22.
- Non-GAAP operating margin of 21% in Q4 FY22.
- Combined revenue growth plus free cash flow margin of 33% for FY22.
- Guidance for Q1 FY23 revenue between $233 million and $235 million (16% growth).
- Expecting FY23 revenue between $990 million and $996 million (14% growth).
- GAAP net loss per share increased to $0.06 in Q4 FY22, compared to $0.03 in Q4 FY21.
- Net cash provided by operating activities decreased from $57.5 million in Q4 FY21 to $49.2 million in Q4 FY22.
- Free cash flow decreased from $41.0 million in Q4 FY21 to $33.3 million in Q4 FY22.
Fourth Quarter GAAP Operating Margin of Breakeven, Non-GAAP Operating Margin of
Fiscal 2022 Combined Revenue Growth + Free Cash Flow Margin of
“In fiscal 2022, we achieved strong results across all of our financial metrics, executing on our vision for the Box Content Cloud while exceeding our guidance for growth and profitability,” said
“We are proud to have delivered a combined revenue growth plus free cash flow margin outcome of
Fiscal Fourth Quarter Financial Highlights
-
Revenue for the fourth quarter of fiscal year 2022 was
$233.4 million 17% increase from revenue for the fourth quarter of fiscal year 2021 of$198.9 million -
Remaining performance obligations as of
January 31, 2022 , were$1.1 billion 19% increase from remaining performance obligations as ofJanuary 31, 2021 of$896.9 million -
Deferred revenue as of
January 31, 2022 , was$534.2 million 15% increase from deferred revenue as ofJanuary 31, 2021 of$465.6 million -
Billings for the fourth quarter of fiscal year 2022 were
$337.9 million 9% increase from billings for the fourth quarter of fiscal year 2021 of$310.1 million -
GAAP gross profit for the fourth quarter of fiscal year 2022 was
$168.7 million 72% of revenue. This compares to a GAAP gross profit of$140.3 million 71% of revenue, in the fourth quarter of fiscal year 2021. -
Non-GAAP gross profit for the fourth quarter of fiscal year 2022 was
$175.2 million 75% of revenue. This compares to a non-GAAP gross profit of$145.6 million 73% of revenue, in the fourth quarter of fiscal year 2021. -
GAAP operating loss in the fourth quarter of fiscal year 2022 was
$0.2 million 0% of revenue. This compares to a GAAP operating loss of$3.3 million 2% of revenue, in the fourth quarter of fiscal year 2021. -
Non-GAAP operating income in the fourth quarter of fiscal year 2022 was
$48.5 million 21% of revenue. This compares to a non-GAAP operating income of$36.4 million 18% of revenue, in the fourth quarter of fiscal year 2021. -
GAAP net loss per share attributable to common stockholders, basic and diluted, in the fourth quarter of fiscal year 2022 was
$0.06 $0.03 -
Non-GAAP net income per share attributable to common stockholders, diluted, in the fourth quarter of fiscal year 2022 was
$0.24 $0.22 -
Net cash provided by operating activities in the fourth quarter of fiscal year 2022 was
$49.2 million $57.5 million -
Free cash flow in the fourth quarter of fiscal year 2022 was
$33.3 million $41.0 million
Fiscal Year 2022 Financial Highlights
-
Revenue for fiscal year 2022 was
$874.3 million 13% increase from revenue for fiscal year 2021 of$770.8 million 11% . -
Billings for fiscal year 2022 were
$941.9 million 16% increase from billings for fiscal year 2021 of$812.5 million -
GAAP gross profit for the fiscal year 2022 was
$624.8 million 71% of revenue. This compares to a GAAP gross profit of$546.0 million 71% of revenue, in fiscal year 2021. -
Non-GAAP gross profit for fiscal year 2022 was
$650.1 million 74% of revenue. This compares to a non-GAAP gross profit of$565.0 million 73% of revenue, in fiscal year 2021. -
GAAP operating loss in fiscal year 2022 was
$27.6 million 3% of revenue. This compares to a GAAP operating loss of$37.6 million 5% of revenue, in fiscal year 2021. -
Non-GAAP operating income in fiscal year 2022 was
$173.4 million 20% of revenue. This compares to a non-GAAP operating income of$118.8 million 15% of revenue, in fiscal year 2021. -
GAAP net loss per share attributable to common stockholders, basic and diluted, in fiscal year 2022 was
$0.35 $0.28 -
Non-GAAP net income per share attributable to common stockholders, diluted, in fiscal year 2022 was
$0.85 $0.70 -
Net cash provided by operating activities in fiscal year 2022 was
$234.8 million $196.8 million -
Free cash flow in fiscal year 2022 was
$170.2 million 41% from free cash flow of$120.3 million
For more information on the non-GAAP financial measures and key metrics discussed in this press release, please see the section titled, “About Non-GAAP Financial Measures and Other Key Metrics,” and the reconciliations of non-GAAP financial measures and certain key metrics to their nearest comparable GAAP financial measures at the end of this press release.
Business Highlights Since Last Earnings Release
-
Delivered wins or expansions with leading organizations such as 23andMe, Crispr Therapeutics, Fanatics,
Japan Post Co., Ltd. , Twilio, andUnited Parcel Service of America . - Released new and enhanced capabilities, integrations, and developer tools for Box's native e-signature product, Box Sign. These new capabilities include workflow features that automate processes once a document has been executed and APIs that power e-signatures in third-party and custom applications.
- Announced new monitoring and reporting tools for the Box Admin Console to help customers keep their businesses running smoothly and securely. These new capabilities include advanced reporting in Box Sign and Box Shield, automated verification controls, and an event stream that provides near real-time visibility into activity across Box.
- Announced the general availability of an enhanced Box for Microsoft Teams integration that enables customers to select Box as the default cloud content management solution in the Teams environment.
- Announced the general availability of an enhanced Box for Slack integration that enables joint customers to use Box as the single file storage system in the Slack environment.
-
Announced the grantees of the 2021
Box Impact Fund , which provides grants for digital transformation to nonprofit organizations doing critical work in the areas of child welfare and crisis response. -
Recognized as #5 in Glassdoor Best Places to Work in 2022 and as one of
Great Place to Work’s Best Workplaces for Parents in 2021. - Received a top score of 100 on the 2022 Human Rights Campaign Corporate Equality Index.
Outlook
-
Q1 FY23 Guidance: Revenue is expected to be in the range of
$233 million $235 million 16% year-over-year at the high-end of the range. GAAP operating margin is expected to be approximately1% , and non-GAAP operating margin is expected to be approximately21% . GAAP basic and diluted net loss per share attributable to common stockholders are expected to be in the range of$0.05 $0.04 $0.24 $0.25
-
Full Year FY23 Guidance: Revenue is expected to be in the range of
$990 million $996 million 14% year-over-year at the high-end of the range, and represents an acceleration from last year’s growth rate of13% . GAAP operating margin is expected to be approximately2% , and non-GAAP operating margin is expected to be approximately22% . GAAP basic and diluted net loss per share attributable to common stockholders are expected to be in the range of$0.07 $0.03 $1.10 $1.14
All forward-looking non-GAAP financial measures contained in this section titled “Outlook” exclude estimates for stock-based compensation expense, intangible assets amortization, and as applicable, other special items. Box has provided a reconciliation of GAAP to non-GAAP net income (loss) per share guidance at the end of this press release.
Webcast and Conference Call Information
Box’s management team will host a conference call today beginning at
The conference call can be accessed by registering online at http://www.directeventreg.com/registration/event/6523187, at which time registrants will receive dial-in information as well as a passcode and registrant ID. A telephonic replay of the call will be available approximately two hours after the call and will run for one week. The replay can be accessed by dialing:
+ 1-800-585-8367 (
+ 1-416-621-4642 (international), conference ID: 6523187
Box has used, and intends to continue to use, its Investor Relations website (www.box.com/investors), as well as certain Twitter accounts (@box, @levie and @boxincir), as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Information on or that can be accessed through Box’s Investor Relations website, these Twitter accounts, or that is contained in any website to which a hyperlink is provided herein is not part of this press release, and the inclusion of Box’s Investor Relations website address, these Twitter accounts, and any hyperlinks are only inactive textual references.
This press release, the financial tables, as well as other supplemental information including the reconciliations of non-GAAP financial measures and certain key metrics to their nearest comparable GAAP financial measures, are also available on Box’s Investor Relations website. Box also provides investor information, including news and commentary about Box’s business and financial performance, Box’s filings with the
Forward-Looking Statements
This press release contains forward-looking statements that involve risks, uncertainties, and assumptions, including statements regarding Box’s expectations regarding the size of its market opportunity, sales productivity, its leadership position in the cloud content management market, the demand for its products, the timing of recent and planned product introductions, enhancements and integrations, the short- and long-term success, market adoption and retention, capabilities, and benefits of such product introductions and enhancements, the success of strategic partnerships, the impact of its acquisitions on future Box product offerings, the benefits to its customers from completing acquisitions, the time needed to integrate acquired businesses into Box, the impact of the COVID-19 pandemic or the Russian invasion of
Additional information on potential factors that could affect Box’s financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings Box makes with the
About Non-GAAP Financial Measures and Other Key Metrics
To supplement Box’s consolidated financial statements, which are prepared and presented in accordance with GAAP, Box provides investors with certain non-GAAP financial measures and other key metrics, including non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, billings, remaining performance obligations, and free cash flow. The presentation of these non-GAAP financial measures and key metrics is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures and key metrics, please see the reconciliation of these non-GAAP financial measures and certain key metrics to their nearest comparable GAAP financial measures at the end of this press release.
Box uses these non-GAAP financial measures and key metrics for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Box’s management believes that these non-GAAP financial measures and key metrics provide meaningful supplemental information regarding Box’s performance by excluding certain expenses that may not be indicative of Box's recurring core business operating results. Box believes that both management and investors benefit from referring to these non-GAAP financial measures and key metrics in assessing Box’s performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures and key metrics also facilitate management's internal comparisons to Box’s historical performance as well as comparisons to Box’s competitors' operating results. Box believes these non-GAAP financial measures and key metrics are useful to investors both because they (1) allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) are used by Box’s institutional investors and the analyst community to help them analyze the health of Box’s business.
A limitation of non-GAAP financial measures and key metrics is that they do not have uniform definitions. Further, Box’s definitions will likely differ from the definitions used by other companies, including peer companies, and therefore comparability may be limited. Thus, Box’s non-GAAP financial measures and key metrics should be considered in addition to, and not as a substitute for, or in isolation from, measures prepared in accordance with GAAP. Additionally, in the case of stock-based compensation expense, if Box did not pay a portion of compensation in the form of stock-based compensation expense, the cash salary expense included in cost of revenue and operating expenses would be higher, which would affect Box’s cash position. The accompanying tables have more details on the reconciliations of non-GAAP financial measures and certain key metrics to their nearest comparable GAAP financial measures.
Non-GAAP operating income (loss) and non-GAAP operating margin. Box defines non-GAAP operating income (loss) as operating income (loss) excluding expenses related to stock-based compensation (“SBC”), intangible assets amortization, and as applicable, other special items. Non-GAAP operating margin is defined as non-GAAP operating income (loss) divided by revenue. Although SBC is an important aspect of the compensation of Box’s employees and executives, determining the fair value of certain of the stock-based instruments Box utilizes involves a high degree of judgment and estimation and the expense recorded may bear little resemblance to the actual value realized upon the vesting or future exercise of the related stock-based awards. Furthermore, unlike cash compensation, the value of stock options, which is an element of Box’s ongoing stock-based compensation expense, is determined using a complex formula that incorporates factors, such as market volatility, that are beyond Box’s control. For restricted stock unit awards, the amount of stock-based compensation expenses is not reflective of the value ultimately received by the grant recipients. Management believes it is useful to exclude SBC in order to better understand the long-term performance of Box’s core business and to facilitate comparison of Box’s results to those of peer companies. Management also views amortization of acquired intangible assets, such as the amortization of the cost associated with an acquired company’s developed technology and trade names, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense that is not typically affected by operations during any particular period. Furthermore, Box excludes the following expenses as they are considered by management to be special items outside of Box’s core operating results: (1) fees related to shareholder activism, which include directly applicable third-party advisory and professional service fees, (2) expenses related to certain litigation, (3) expenses associated with restructuring activities, consisting primarily of severance and other personnel-related costs, and (4) expenses related to acquisitions, including transaction and discrete tax costs. There are no expenses related to litigation excluded from non-GAAP operating income (loss) in any of the periods presented.
Non-GAAP net income (loss) and non-GAAP net income (loss) per share. Box defines non-GAAP net income (loss) as GAAP net income (loss) excluding expenses related to SBC, intangible assets amortization, and as applicable, other special items as described in the preceding paragraph. In
Billings. Billings reflect, in any particular period, (1) sales to new customers, plus (2) subscription renewals and (3) expansion within existing customers, and represent amounts invoiced for all products and professional services. Box calculates billings for a period by adding changes in deferred revenue and contract assets in that period to revenue. Box believes that billings help investors better understand sales activity for a particular period, which is not necessarily reflected in revenue as a result of the fact that Box recognizes subscription revenue ratably over the subscription term. Box considers billings a significant performance measure. Box monitors billings to manage the business, make planning decisions, evaluate performance and allocate resources. Box believes that billings offers valuable supplemental information regarding the performance of the business and helps investors better understand the sales volumes and performance of the business. Although Box considers billings to be a significant performance measure, Box does not consider it to be a non-GAAP financial measure because it is calculated using exclusively revenue, deferred revenue, and contract assets, all of which are financial measures calculated in accordance with GAAP.
Remaining performance obligations. Remaining performance obligations (“RPO”) represent, at a point in time, contracted revenue that has not yet been recognized. RPO consists of deferred revenue and backlog, offset by contract assets. Backlog is defined as non-cancellable contracts deemed certain to be invoiced and recognized as revenue in future periods. Future invoicing is determined to be certain when we have an executed non-cancellable contract and invoicing is not dependent on a future event such as the delivery of a specific new product or feature, or the achievement of contractual contingencies. While Box believes RPO is a leading indicator of revenue as it represents sales activity not yet recognized in revenue, it is not necessarily indicative of future revenue growth as it is influenced by several factors, including seasonality, contract renewal timing, average contract terms and foreign currency exchange rates. Box monitors RPO to manage the business and evaluate performance. Box considers RPO to be a significant performance measure. Box does not consider RPO to be a non-GAAP financial measure because it is calculated in accordance with GAAP, specifically under ASC Topic 606.
Free cash flow. Box defines free cash flow as cash flows from operating activities less purchases of property and equipment, principal payments of finance lease liabilities, capitalized internal-use software costs, and other items that did not or are not expected to require cash settlement and that management considers to be outside of Box’s core business. Box specifically identifies adjusting items in the reconciliation of GAAP to non-GAAP financial measures. Box considers free cash flow to be a profitability and liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can possibly be used for investing in Box's business and strengthening its balance sheet, but it is not intended to represent the residual cash flow available for discretionary expenditures. The presentation of non-GAAP free cash flow is also not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.
About Box
Box (NYSE:BOX) is the leading Content Cloud that enables organizations to accelerate business processes, power workplace collaboration, and protect their most valuable information, all while working with a best-of-breed enterprise IT stack. Founded in 2005, Box simplifies work for leading organizations globally, including AstraZeneca, JLL, and Morgan Stanley. Box is headquartered in
|
|||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||
(In Thousands) |
|||||||||
(Unaudited) |
|||||||||
|
|
|
|
|
|
|
|
||
|
|
2022 |
|
|
2021 |
|
|
||
ASSETS |
|
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
416,274 |
|
|
$ |
595,082 |
|
|
Short-term investments |
|
|
170,000 |
|
|
|
— |
|
|
Accounts receivable, net |
|
|
256,312 |
|
|
|
228,309 |
|
|
Prepaid expenses and other current assets |
|
|
27,953 |
|
|
|
16,785 |
|
|
Deferred commissions |
|
|
46,025 |
|
|
|
39,110 |
|
|
Total current assets |
|
|
916,564 |
|
|
|
879,286 |
|
|
Property and equipment, net |
|
|
105,755 |
|
|
|
160,148 |
|
|
Operating lease right-of-use assets, net |
|
|
172,808 |
|
|
|
194,253 |
|
|
|
|
|
74,466 |
|
|
|
18,740 |
|
|
Deferred commissions, non-current |
|
|
72,884 |
|
|
|
66,481 |
|
|
Other long-term assets |
|
|
49,532 |
|
|
|
32,774 |
|
|
Total assets |
|
$ |
1,392,009 |
|
|
$ |
1,351,682 |
|
|
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ (DEFICIT) EQUITY |
|
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
|
||
Accounts payable, accrued expenses and other current liabilities |
|
$ |
58,942 |
|
|
$ |
32,128 |
|
|
Accrued compensation and benefits |
|
|
54,705 |
|
|
|
39,123 |
|
|
Finance lease liabilities |
|
|
41,235 |
|
|
|
49,888 |
|
|
Operating lease liabilities |
|
|
44,608 |
|
|
|
47,771 |
|
|
Deferred revenue |
|
|
519,485 |
|
|
|
443,929 |
|
|
Total current liabilities |
|
|
718,975 |
|
|
|
612,839 |
|
|
Debt, net, non-current |
|
|
367,463 |
|
|
|
297,614 |
|
|
Finance lease liabilities, non-current |
|
|
20,836 |
|
|
|
60,351 |
|
|
Operating lease liabilities, non-current |
|
|
168,192 |
|
|
|
192,531 |
|
|
Deferred revenue, non-current |
|
|
14,757 |
|
|
|
21,684 |
|
|
Other long-term liabilities |
|
|
8,993 |
|
|
|
15,598 |
|
|
Total liabilities |
|
|
1,299,216 |
|
|
|
1,200,617 |
|
|
Series A convertible preferred stock |
|
|
487,880 |
|
|
|
— |
|
|
Stockholders’ (deficit) equity: |
|
|
|
|
|
|
|
||
Common stock |
|
|
15 |
|
|
|
16 |
|
|
Additional paid-in capital |
|
|
972,020 |
|
|
|
1,473,666 |
|
|
Accumulated other comprehensive loss |
|
|
(4,543 |
) |
|
|
(938 |
) |
|
Accumulated deficit |
|
|
(1,362,579 |
) |
|
|
(1,321,679 |
) |
|
Total stockholders’ (deficit) equity |
|
|
(395,087 |
) |
|
|
151,065 |
|
|
Total liabilities, convertible preferred stock and stockholders' (deficit) equity |
|
$ |
1,392,009 |
|
|
$ |
1,351,682 |
|
|
|
|||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||
(In Thousands, Except Per Share Data) |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
|
|
Three Months Ended |
|
|
Fiscal Year Ended |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
||||
Revenue |
|
$ |
233,361 |
|
|
$ |
198,913 |
|
|
$ |
874,332 |
|
|
$ |
770,770 |
|
|
Cost of revenue (1) |
|
|
64,680 |
|
|
|
58,597 |
|
|
|
249,484 |
|
|
|
224,738 |
|
|
Gross profit |
|
|
168,681 |
|
|
|
140,316 |
|
|
|
624,848 |
|
|
|
546,032 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research and development (1) |
|
|
59,105 |
|
|
|
48,579 |
|
|
|
218,523 |
|
|
|
201,262 |
|
|
Sales and marketing (1) |
|
|
79,668 |
|
|
|
68,123 |
|
|
|
298,635 |
|
|
|
275,742 |
|
|
General and administrative (1) |
|
|
30,074 |
|
|
|
26,892 |
|
|
|
135,316 |
|
|
|
106,670 |
|
|
Total operating expenses |
|
|
168,847 |
|
|
|
143,594 |
|
|
|
652,474 |
|
|
|
583,674 |
|
|
Loss from operations |
|
|
(166 |
) |
|
|
(3,278 |
) |
|
|
(27,626 |
) |
|
|
(37,642 |
) |
|
Interest and other expense, net |
|
|
(1,563 |
) |
|
|
(1,349 |
) |
|
|
(9,838 |
) |
|
|
(4,584 |
) |
|
Loss before provision for income taxes |
|
|
(1,729 |
) |
|
|
(4,627 |
) |
|
|
(37,464 |
) |
|
|
(42,226 |
) |
|
Provision for income taxes |
|
|
2,596 |
|
|
|
316 |
|
|
|
3,995 |
|
|
|
1,207 |
|
|
Net loss |
|
|
(4,325 |
) |
|
|
(4,943 |
) |
|
|
(41,459 |
) |
|
|
(43,433 |
) |
|
Dividend on series A convertible preferred stock |
|
|
(3,807 |
) |
|
|
— |
|
|
|
(10,911 |
) |
|
|
— |
|
|
Accretion of series A convertible preferred stock |
|
|
(526 |
) |
|
|
— |
|
|
|
(1,508 |
) |
|
|
— |
|
|
Net loss attributable to common stockholders |
|
$ |
(8,658 |
) |
|
$ |
(4,943 |
) |
|
$ |
(53,878 |
) |
|
$ |
(43,433 |
) |
|
Net loss per share attributable to common stockholders, basic and diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.28 |
) |
|
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted |
|
|
148,271 |
|
|
|
159,172 |
|
|
|
155,598 |
|
|
|
155,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(1) Includes stock-based compensation expense as follows: |
|||||||||||||||||
|
|
Three Months Ended |
Fiscal Year Ended |
||||||||||||||
|
|
|
|
||||||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
||||
Cost of revenue |
|
$ |
5,084 |
|
|
$ |
5,263 |
|
|
$ |
20,093 |
|
|
$ |
18,936 |
|
|
Research and development |
|
|
18,272 |
|
|
|
15,006 |
|
|
|
68,063 |
|
|
|
61,145 |
|
|
Sales and marketing |
|
|
14,205 |
|
|
|
10,651 |
|
|
|
52,547 |
|
|
|
42,015 |
|
|
General and administrative |
|
|
9,906 |
|
|
|
7,934 |
|
|
|
38,271 |
|
|
|
32,196 |
|
|
Total stock-based compensation |
|
$ |
47,467 |
|
|
$ |
38,854 |
|
|
$ |
178,974 |
|
|
$ |
154,292 |
|
|
|
|||||||||||||||||
|
|||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||||
(In Thousands) |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
|
|
Three Months Ended |
|
|
Fiscal Year Ended |
|
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss |
|
$ |
(4,325 |
) |
|
$ |
(4,943 |
) |
|
$ |
(41,459 |
) |
|
$ |
(43,433 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
19,124 |
|
|
|
19,096 |
|
|
|
78,234 |
|
|
|
75,478 |
|
|
Stock-based compensation expense |
|
|
47,467 |
|
|
|
38,854 |
|
|
|
178,974 |
|
|
|
154,292 |
|
|
Amortization of deferred commissions |
|
|
12,579 |
|
|
|
9,988 |
|
|
|
45,866 |
|
|
|
36,053 |
|
|
Other |
|
|
290 |
|
|
|
1,018 |
|
|
|
2,862 |
|
|
|
1,071 |
|
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable, net |
|
|
(101,688 |
) |
|
|
(112,645 |
) |
|
|
(27,224 |
) |
|
|
(18,875 |
) |
|
Prepaid expenses and other assets |
|
|
(9,356 |
) |
|
|
5,714 |
|
|
|
(16,053 |
) |
|
|
6,348 |
|
|
Deferred commissions |
|
|
(24,221 |
) |
|
|
(18,751 |
) |
|
|
(59,240 |
) |
|
|
(48,041 |
) |
|
Operating lease right-of-use assets, net |
|
|
9,715 |
|
|
|
10,630 |
|
|
|
41,825 |
|
|
|
40,726 |
|
|
Accounts payable, accrued expenses, and other liabilities |
|
|
6,207 |
|
|
|
9,634 |
|
|
|
15,325 |
|
|
|
(2,824 |
) |
|
Operating lease liabilities |
|
|
(11,199 |
) |
|
|
(12,305 |
) |
|
|
(47,389 |
) |
|
|
(45,725 |
) |
|
Deferred revenue |
|
|
104,578 |
|
|
|
111,250 |
|
|
|
63,097 |
|
|
|
41,764 |
|
|
Net cash provided by operating activities |
|
|
49,171 |
|
|
|
57,540 |
|
|
|
234,818 |
|
|
|
196,834 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Purchases of short-term investments |
|
|
(30,000 |
) |
|
|
— |
|
|
|
(170,000 |
) |
|
|
— |
|
|
Purchases of property and equipment, net of proceeds from sales |
|
|
(1,225 |
) |
|
|
(1,637 |
) |
|
|
(4,702 |
) |
|
|
(9,052 |
) |
|
Capitalized internal-use software costs |
|
|
(2,284 |
) |
|
|
(1,081 |
) |
|
|
(5,785 |
) |
|
|
(7,438 |
) |
|
Acquisitions, net of cash acquired |
|
|
— |
|
|
|
— |
|
|
|
(59,395 |
) |
|
|
— |
|
|
Other |
|
|
187 |
|
|
|
— |
|
|
|
514 |
|
|
|
107 |
|
|
Net cash used in investing activities |
|
|
(33,322 |
) |
|
|
(2,718 |
) |
|
|
(239,368 |
) |
|
|
(16,383 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Series A convertible preferred stock, net of issuance costs |
|
|
(23 |
) |
|
|
— |
|
|
|
485,080 |
|
|
|
— |
|
|
Repurchases of common stock |
|
|
(133,318 |
) |
|
|
— |
|
|
|
(561,571 |
) |
|
|
— |
|
|
Proceeds from issuance of convertible debt, net of issuance costs |
|
|
— |
|
|
|
336,375 |
|
|
|
(478 |
) |
|
|
336,375 |
|
|
Purchase of capped calls related to convertible debt |
|
|
— |
|
|
|
(27,773 |
) |
|
|
— |
|
|
|
(27,773 |
) |
|
Proceeds from borrowings, net of borrowing costs |
|
|
— |
|
|
|
— |
|
|
|
(171 |
) |
|
|
30,000 |
|
|
Principal payments on borrowings |
|
|
— |
|
|
|
(20,000 |
) |
|
|
— |
|
|
|
(40,000 |
) |
|
Payments of dividends to preferred stockholders |
|
|
(9,619 |
) |
|
|
— |
|
|
|
(9,619 |
) |
|
|
— |
|
|
Proceeds from issuances of common stock under employee equity plans |
|
|
1,633 |
|
|
|
387 |
|
|
|
25,373 |
|
|
|
28,856 |
|
|
Employee payroll taxes paid related to net settlement of restricted stock units |
|
|
(13,706 |
) |
|
|
(10,541 |
) |
|
|
(57,383 |
) |
|
|
(48,761 |
) |
|
Principal payments of finance lease liabilities |
|
|
(12,209 |
) |
|
|
(13,861 |
) |
|
|
(50,391 |
) |
|
|
(60,020 |
) |
|
Other |
|
|
(156 |
) |
|
|
— |
|
|
|
(3,701 |
) |
|
|
— |
|
|
Net cash (used in) provided by financing activities |
|
|
(167,398 |
) |
|
|
264,587 |
|
|
|
(172,861 |
) |
|
|
218,677 |
|
|
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
(423 |
) |
|
|
309 |
|
|
|
(1,212 |
) |
|
|
797 |
|
|
Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
|
(151,972 |
) |
|
|
319,718 |
|
|
|
(178,623 |
) |
|
|
399,925 |
|
|
Cash, cash equivalents, and restricted cash, beginning of period |
|
|
568,860 |
|
|
|
275,793 |
|
|
|
595,511 |
|
|
|
195,586 |
|
|
Cash, cash equivalents, and restricted cash, end of period |
|
$ |
416,888 |
|
|
$ |
595,511 |
|
|
$ |
416,888 |
|
|
$ |
595,511 |
|
|
|
|||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP DATA |
|||||||||||||||||
(In Thousands, Except Per Share Data and Percentages) |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
|
|
Three Months Ended |
|
|
Fiscal Year Ended |
|
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
||||
GAAP gross profit |
|
$ |
168,681 |
|
|
$ |
140,316 |
|
|
$ |
624,848 |
|
|
$ |
546,032 |
|
|
Stock-based compensation |
|
|
5,084 |
|
|
|
5,263 |
|
|
|
20,093 |
|
|
|
18,936 |
|
|
Acquired intangible assets amortization |
|
|
1,451 |
|
|
|
— |
|
|
|
5,148 |
|
|
|
— |
|
|
Non-GAAP gross profit |
|
$ |
175,216 |
|
|
$ |
145,579 |
|
|
$ |
650,089 |
|
|
$ |
564,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP gross margin |
|
|
72 |
|
% |
|
71 |
|
% |
|
71 |
|
% |
|
71 |
|
% |
Stock-based compensation |
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
Acquired intangible assets amortization |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
Non-GAAP gross margin |
|
|
75 |
|
% |
|
73 |
|
% |
|
74 |
|
% |
|
73 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP operating loss |
|
$ |
(166 |
) |
|
$ |
(3,278 |
) |
|
$ |
(27,626 |
) |
|
$ |
(37,642 |
) |
|
Stock-based compensation |
|
|
47,467 |
|
|
|
38,854 |
|
|
|
178,974 |
|
|
|
154,292 |
|
|
Acquired intangible assets amortization |
|
|
1,451 |
|
|
|
— |
|
|
|
5,148 |
|
|
|
— |
|
|
Acquisition-related expenses |
|
|
67 |
|
|
|
790 |
|
|
|
1,282 |
|
|
|
790 |
|
|
Fees related to shareholder activism |
|
|
(334 |
) |
|
|
— |
|
|
|
15,644 |
|
|
|
1,402 |
|
|
Non-GAAP operating income |
|
$ |
48,485 |
|
|
$ |
36,366 |
|
|
$ |
173,422 |
|
|
$ |
118,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP operating margin |
|
|
— |
|
% |
|
(2 |
) |
% |
|
(3 |
) |
% |
|
(5 |
) |
% |
Stock-based compensation |
|
|
20 |
|
|
|
20 |
|
|
|
20 |
|
|
|
20 |
|
|
Acquired intangible assets amortization |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
Acquisition-related expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Fees related to shareholder activism |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
Non-GAAP operating margin |
|
|
21 |
|
% |
|
18 |
|
% |
|
20 |
|
% |
|
15 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP net loss attributable to common stockholders |
|
$ |
(8,658 |
) |
|
$ |
(4,943 |
) |
|
$ |
(53,878 |
) |
|
$ |
(43,433 |
) |
|
Stock-based compensation |
|
|
47,467 |
|
|
|
38,854 |
|
|
|
178,974 |
|
|
|
154,292 |
|
|
Acquired intangible assets amortization |
|
|
1,451 |
|
|
|
— |
|
|
|
5,148 |
|
|
|
— |
|
|
Acquisition-related expenses |
|
|
1,134 |
|
|
|
790 |
|
|
|
2,349 |
|
|
|
790 |
|
|
Fees related to shareholder activism |
|
|
(334 |
) |
|
|
— |
|
|
|
15,644 |
|
|
|
1,402 |
|
|
Amortization of debt discount and issuance costs |
|
|
470 |
|
|
|
647 |
|
|
|
1,878 |
|
|
|
647 |
|
|
Undistributed earnings attributable to preferred stockholders |
|
|
(4,657 |
) |
|
|
— |
|
|
|
(12,034 |
) |
|
|
— |
|
|
Non-GAAP net income attributable to common stockholders |
|
$ |
36,873 |
|
|
$ |
35,348 |
|
|
$ |
138,081 |
|
|
$ |
113,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP net loss per share attributable to common stockholders, basic and diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.28 |
) |
|
Stock-based compensation |
|
|
0.32 |
|
|
|
0.24 |
|
|
|
1.15 |
|
|
|
0.99 |
|
|
Acquired intangible assets amortization |
|
|
0.01 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
|
Acquisition-related expenses |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.01 |
|
|
Fees related to shareholder activism |
|
|
— |
|
|
|
— |
|
|
|
0.10 |
|
|
|
0.01 |
|
|
Amortization of debt discount and issuance costs |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
Undistributed earnings attributable to preferred stockholders |
|
|
(0.03 |
) |
|
|
— |
|
|
|
(0.08 |
) |
|
|
— |
|
|
Non-GAAP net income per share attributable to common stockholders, basic |
|
$ |
0.25 |
|
|
$ |
0.22 |
|
|
$ |
0.88 |
|
|
$ |
0.73 |
|
|
Non-GAAP net income per share attributable to common stockholders, diluted |
|
$ |
0.24 |
|
|
$ |
0.22 |
|
|
$ |
0.85 |
|
|
$ |
0.70 |
|
|
Weighted-average shares used to compute GAAP net loss per share, basic and diluted |
|
|
148,271 |
|
|
|
159,172 |
|
|
|
155,598 |
|
|
|
155,849 |
|
|
Weighted-average shares used to compute non-GAAP net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
148,271 |
|
|
|
159,172 |
|
|
|
155,598 |
|
|
|
155,849 |
|
|
Diluted |
|
|
155,981 |
|
|
|
164,351 |
|
|
|
163,337 |
|
|
|
162,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP net cash provided by operating activities |
|
$ |
49,171 |
|
|
$ |
57,540 |
|
|
$ |
234,818 |
|
|
$ |
196,834 |
|
|
Purchases of property and equipment, net of proceeds from sales |
|
|
(1,225 |
) |
|
|
(1,637 |
) |
|
|
(4,702 |
) |
|
|
(9,052 |
) |
|
Principal payments of finance lease liabilities |
|
|
(12,209 |
) |
|
|
(13,861 |
) |
|
|
(50,391 |
) |
|
|
(60,020 |
) |
|
Capitalized internal-use software costs |
|
|
(2,440 |
) |
|
|
(1,081 |
) |
|
|
(9,486 |
) |
|
|
(7,438 |
) |
|
Non-GAAP free cash flow |
|
$ |
33,297 |
|
|
$ |
40,961 |
|
|
$ |
170,239 |
|
|
$ |
120,324 |
|
|
GAAP net cash used in investing activities |
|
$ |
(33,322 |
) |
|
$ |
(2,718 |
) |
|
$ |
(239,368 |
) |
|
$ |
(16,383 |
) |
|
GAAP net cash (used in) provided by financing activities |
|
$ |
(167,398 |
) |
|
$ |
264,587 |
|
|
$ |
(172,861 |
) |
|
$ |
218,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
||||||||||||||||
RECONCILIATION OF GAAP REVENUE TO BILLINGS |
||||||||||||||||
(In Thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Fiscal Year Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
GAAP revenue |
|
$ |
233,361 |
|
|
$ |
198,913 |
|
|
$ |
874,332 |
|
|
$ |
770,770 |
|
Deferred revenue, end of period |
|
|
534,242 |
|
|
|
465,613 |
|
|
|
534,242 |
|
|
|
465,613 |
|
Less: deferred revenue, beginning of period |
|
|
(429,664 |
) |
|
|
(354,363 |
) |
|
|
(465,613 |
) |
|
|
(423,849 |
) |
Contract assets, beginning of period |
|
|
1,073 |
|
|
|
— |
|
|
|
25 |
|
|
|
— |
|
Less: contract assets, end of period |
|
|
(1,111 |
) |
|
|
(25 |
) |
|
|
(1,111 |
) |
|
|
(25 |
) |
Billings |
|
$ |
337,901 |
|
|
$ |
310,138 |
|
|
$ |
941,875 |
|
|
$ |
812,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
||||||||||||||||
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME PER SHARE GUIDANCE |
||||||||||||||||
(In Thousands, Except Per Share Data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Fiscal Year Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
GAAP net loss per share attributable to common stockholders range, basic and diluted |
|
$ |
(0.05 |
) |
- |
$ |
(0.04 |
) |
|
$ |
(0.07 |
) |
- |
$ |
(0.03 |
) |
Stock-based compensation |
|
|
0.32 |
|
|
|
0.32 |
|
|
|
1.30 |
|
|
|
1.30 |
|
Acquired intangible asset amortization |
|
|
0.01 |
|
|
$ |
0.01 |
|
|
|
0.04 |
|
|
|
0.04 |
|
Amortization of debt issuance costs |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
Undistributed earnings attributable to preferred stockholders |
|
|
(0.03 |
) |
|
$ |
(0.03 |
) |
|
|
(0.14 |
) |
|
|
(0.14 |
) |
Non-GAAP net income per share attributable to common stockholders range, basic |
|
$ |
0.25 |
|
- |
$ |
0.26 |
|
|
$ |
1.14 |
|
- |
$ |
1.18 |
|
Non-GAAP net income per share attributable to common stockholders range, diluted |
|
$ |
0.24 |
|
- |
$ |
0.25 |
|
|
$ |
1.10 |
|
- |
$ |
1.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares used to compute GAAP net loss per share attributable to common stockholders, basic and diluted |
|
|
|
|
|
145,504 |
|
|
|
|
|
|
148,304 |
|
||
Weighted-average shares used to compute non-GAAP net income per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
|
|
|
145,504 |
|
|
|
|
|
|
148,304 |
|
||
Diluted |
|
|
|
|
|
151,766 |
|
|
|
|
|
|
153,900 |
|
||
|
||||||||||
RECONCILIATION OF GAAP TO NON-GAAP OPERATING MARGIN GUIDANCE |
||||||||||
(Unaudited) |
||||||||||
|
|
Three Months Ended |
|
|
|
Fiscal Year Ended |
|
|
||
|
|
|
|
|
|
|
|
|
||
GAAP operating margin |
|
|
1.0 |
|
% |
|
|
2.0 |
|
% |
Stock-based compensation |
|
|
19.5 |
|
|
|
|
19.5 |
|
|
Acquired intangible assets amortization |
|
|
0.5 |
|
|
|
|
0.5 |
|
|
Non-GAAP operating margin |
|
|
21.0 |
|
% |
|
|
22.0 |
|
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220302005595/en/
Investors:
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press@box.com
Source:
FAQ
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