Press release

Box Reports Fiscal Year 2021 Revenue of $771 Million, Up 11 Percent Year Over Year

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Box, Inc. (NYSE:BOX), a leader in cloud content management, today announced preliminary financial results for the fourth quarter and full fiscal year ended January 31, 2021.

“In fiscal 2021, we achieved a significantly stronger balance of growth and profitability while executing on our vision to deliver the Box Content Cloud, a secure platform for managing the entire content lifecycle in the cloud,” said Aaron Levie, co-founder and CEO of Box. “Growing demand for products like Shield and Relay continues to accelerate adoption of our bundled Suite offerings. We are excited to further expand our product portfolio with Box Sign, Box’s e-signature capability natively embedded in a cloud content management platform built for the enterprise.”

“We are proud to have delivered a combined revenue growth plus free cash flow margin outcome of 26% in fiscal 2021, up from 13% a year ago,” said Dylan Smith, Box’s co-founder and CFO. “Our focus on driving profitable growth allowed us to significantly improve operating margins and cash flow this past year. Going forward, we will continue to focus on profitability improvements while investing in our expanded market opportunity to accelerate top line growth.”

Fiscal Fourth Quarter Financial Highlights

  • Revenue for the fourth quarter of fiscal year 2021 was $198.9 million, an increase of 8% from the fourth quarter of fiscal year 2020.
  • Remaining performance obligations as of January 31, 2021 were $896.9 million, an increase of 17% from the fourth quarter of fiscal year 2020.
  • Deferred revenue as of January 31, 2021 was $465.6 million, an increase of 10% from the fourth quarter of fiscal year 2020.
  • Billings for the fourth quarter of fiscal year 2021 were $310.1 million, an increase of 10% from the fourth quarter of fiscal year 2020.
  • GAAP gross profit for the fourth quarter of fiscal year 2021 was $140.3 million, or 71% of revenue. This compares to a GAAP gross profit of $126.9 million, or 69% of revenue, in the fourth quarter of fiscal year 2020.
  • Non-GAAP gross profit for the fourth quarter of fiscal year 2021 was $145.6 million, or 73% of revenue. This compares to a non-GAAP gross profit of $131.3 million, or 71% of revenue, in the fourth quarter of fiscal year 2020.
  • GAAP operating loss in the fourth quarter of fiscal year 2021 was $3.3 million, or minus 2% of revenue. This compares to a GAAP operating loss of $28.6 million, or minus 15% of revenue, in the fourth quarter of fiscal year 2020.
  • Non-GAAP operating income in the fourth quarter of fiscal year 2021 was $36.4 million, or 18% of revenue. This compares to a non-GAAP operating income of $12.3 million, or 7% of revenue, in the fourth quarter of fiscal year 2020.
  • GAAP net loss per share, basic and diluted, in the fourth quarter of fiscal year 2021 was $0.03 on 159.2 million weighted-average shares outstanding. This compares to a GAAP net loss per share of $0.20 in the fourth quarter of fiscal year 2020 on 150.0 million weighted-average shares outstanding.
  • Non-GAAP net income per share, diluted, in the fourth quarter of fiscal year 2021 was $0.22. This compares to a non-GAAP net income per share of $0.07 in the fourth quarter of fiscal year 2020.
  • Net cash provided by operating activities in the fourth quarter of fiscal year 2021 was $57.5 million, an increase of 283% from net cash provided by operating activities of $15.0 million in the fourth quarter of fiscal year 2020.
  • Free cash flow in the fourth quarter of fiscal year 2021 was positive $41.0 million, or 21% of revenue. This compares to free cash flow of $0.0 million in the fourth quarter of fiscal year 2020.

Fiscal Year 2021 Financial Highlights

  • Revenue for fiscal year 2021 was $770.8 million, an increase of 11% from fiscal year 2020.
  • Billings for fiscal year 2021 were $812.5 million, an increase of 9% from fiscal year 2020.
  • GAAP gross profit for fiscal year 2021 was $546.0 million, or 71% of revenue. This compares to a GAAP gross profit of $480.7 million, or 69% of revenue, in fiscal year 2020.
  • Non-GAAP gross profit for fiscal year 2021 was $565.0 million, or 73% of revenue. This compares to a Non-GAAP gross profit of $497.5 million, or 71% of revenue, in fiscal year 2020.
  • GAAP operating loss in fiscal year 2021 was $37.6 million, or minus 5% of revenue. This compares to a GAAP operating loss of $139.5 million, or minus 20% of revenue, in fiscal year 2020.
  • Non-GAAP operating income in fiscal year 2021 was $118.8 million, or 15% of revenue. This compares to a non-GAAP operating income of $9.3 million, or 1% of revenue, in fiscal year 2020.
  • GAAP net loss per share, basic and diluted, in fiscal year 2021 was $0.28 on 155.8 million weighted-average shares outstanding. This compares to a GAAP net loss per share of $0.98 in fiscal year 2020 on 147.8 million weighted-average shares outstanding.
  • Non-GAAP net income per share, diluted, in fiscal year 2021 was $0.70. This compares to a non-GAAP net income per share of $0.03 in fiscal year 2020.
  • Net cash provided by operating activities in fiscal year 2021 totaled $196.8 million. This compares to net cash provided by operating activities of $44.7 million in fiscal year 2020.
  • Free cash flow in fiscal year 2021 was positive $120.3 million, or 16% of revenue. This compares to negative $7.2 million in fiscal year 2020.

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

Outlook

  • Q1 FY22 Guidance: Revenue is expected to be in the range of $200 million to $201 million. GAAP basic and diluted net loss per share are expected to be in the range of $0.06 to $0.05. Non-GAAP diluted net income per share is expected to be in the range of $0.16 to $0.17. Weighted-average basic and diluted shares outstanding are expected to be approximately 161 million and 166 million, respectively.
  • Full Year FY22 Guidance: Revenue is expected to be in the range of $840 million to $848 million. GAAP basic and diluted net loss per share are expected to be in the range of $0.25 to $0.20. Non-GAAP diluted net income per share is expected to be in the range of $0.76 to $0.81 Weighted-average basic and diluted shares outstanding are expected to be approximately 164 million and 169 million, respectively.

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 2:00 PM (PT) / 5:00 PM (ET) to discuss Box’s financial results, business highlights and future outlook. A live audio webcast of this call will be available through Box’s Investor Relations website at www.box.com/investors for a period of 90 days after the date of the call.

The conference call can be accessed by registering online at http://www.directeventreg.com/registration/event/5787987, 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 (U.S. and Canada), conference ID: 5787987

+ 1-416-621-4642 (international), conference ID: 5787987

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 Securities and Exchange Commission, notices of investor events and Box’s press and earnings releases, on Box’s Investor Relations website.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding Box’s expectations regarding the size of its market opportunity, its leadership position in the cloud content management market, the demand for its products, the impact of its acquisitions on future Box product offerings, the benefits to its customers from completing acquisitions, the time frame to integrate acquired businesses into Box, the impact of the COVID-19 pandemic on its business, its ability to grow and scale its business and drive operating efficiencies, its ability to achieve revenue targets and billings expectations, its ability to achieve profitability on a quarterly or ongoing basis, its free cash flow, its ability to continue to grow unrecognized revenue and remaining performance obligations, 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, its revenue, billings, gross margin, GAAP and non-GAAP net income (loss) per share, non-GAAP operating margins for future periods, the related components of GAAP and non-GAAP net income (loss) per share, and weighted-average outstanding share count expectations for Box’s fiscal first quarter and full fiscal year 2022 in the section titled “Outlook” above. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: (1) adverse changes in general economic or market conditions, including those caused by the COVID-19 pandemic; (2) delays or reductions in information technology spending; (3) factors related to Box’s highly competitive market, including but not limited to pricing pressures, industry consolidation, entry of new competitors and new applications and marketing initiatives by Box’s current or future competitors; (4) the development of the cloud content management market; (5) the risk that Box’s customers do not renew their subscriptions, expand their use of Box’s services, or adopt new products offered by Box on a timely basis, or at all; (6) Box’s ability to provide timely and successful enhancements, integrations, new features and modifications to its platform and services; (7) actual or perceived security vulnerabilities in Box’s services or any breaches of Box’s security controls; (8) Box’s ability to realize the expected benefits of its third-party partnerships; (9) the potential impact of shareholder activism on Box’s business and operations; and (10) Box’s ability to successfully integrate acquired businesses and achieve the expected benefits from those acquisitions. In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Box. While Box believes these estimates are meaningful, they could differ from the actual amounts that Box ultimately reports in its Annual Report on Form 10-K for the fiscal year ended January 31, 2021. Box assumes no obligations and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended January 31, 2021.

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 Securities and Exchange Commission from time to time, including the Quarterly Report on Form 10-Q filed for the fiscal quarter ended October 31, 2020. These documents are available on the SEC Filings section of Box’s Investor Relations website located at www.box.com/investors. Box does not assume any obligation to update the forward-looking statements contained in this press release to reflect events that occur or circumstances that exist after the date on which they were made.

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 (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they 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.

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 acquisition-related 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 costs, integration costs, discrete tax costs and other directly related 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 January 2021, Box issued $345 million aggregate principal amount of 0.00% convertible senior notes due in 2026 (the “Notes”). The imputed interest rate of the Notes was 4.62%. This is a result of the debt discount recorded for the conversion feature of the Notes that is required to be separately accounted for as equity, and debt issuance costs, which reduce the carrying value of the convertible debt instrument. The debt discount is amortized as interest expense together with the issuance costs of the Notes. Box excludes the amortization of the debt discount and issuance costs associated with the Notes, in addition to the expenses described above, as they are considered by management to be special items outside of Box’s core operating results. Box defines non-GAAP net income (loss) per share as non-GAAP net income (loss) divided by the weighted-average outstanding shares.

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. 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.

About Box

Box (NYSE:BOX) is a leading cloud content management platform 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, General Electric, JLL, and Morgan Stanley. Box is headquartered in Redwood City, CA, with offices in the United States, Europe, and Asia. To learn more about Box, visit http://www.box.com. To learn more about how Box powers nonprofits to fulfill their missions, visit Box.org.

BOX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

(Unaudited)

 

 

 

January 31,

 

 

January 31,

 

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

595,082

 

 

$

195,586

 

Accounts receivable, net

 

 

228,309

 

 

 

209,434

 

Prepaid expenses and other current assets

 

 

16,785

 

 

 

21,865

 

Deferred commissions

 

 

39,110

 

 

 

30,841

 

Total current assets

 

 

879,286

 

 

 

457,726

 

Property and equipment, net

 

 

160,148

 

 

 

190,976

 

Operating lease right-of-use assets, net

 

 

194,253

 

 

 

197,806

 

Goodwill

 

 

18,740

 

 

 

18,740

 

Deferred commissions, non-current

 

 

66,481

 

 

 

62,762

 

Other long-term assets

 

 

32,774

 

 

 

31,981

 

Total assets

 

$

1,351,682

 

 

$

959,991

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

4,546

 

 

$

16,752

 

Accrued compensation and benefits

 

 

39,123

 

 

 

32,516

 

Accrued expenses and other current liabilities

 

 

27,582

 

 

 

25,700

 

Finance lease liabilities

 

 

49,888

 

 

 

54,634

 

Operating lease liabilities

 

 

47,771

 

 

 

40,339

 

Deferred revenue

 

 

443,929

 

 

 

407,493

 

Total current liabilities

 

 

612,839

 

 

 

577,434

 

Debt, net, non-current

 

 

297,614

 

 

 

40,000

 

Finance lease liabilities, non-current

 

 

60,351

 

 

 

83,427

 

Operating lease liabilities, non-current

 

 

192,531

 

 

 

206,141

 

Deferred revenue, non-current

 

 

21,684

 

 

 

16,356

 

Other long-term liabilities

 

 

15,598

 

 

 

14,276

 

Total liabilities

 

 

1,200,617

 

 

 

937,634

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock (1)

 

 

16

 

 

 

15

 

Additional paid-in capital

 

 

1,474,843

 

 

 

1,302,072

 

Treasury stock

 

 

(1,177

)

 

 

(1,177

)

Accumulated other comprehensive loss

 

 

(938

)

 

 

(307

)

Accumulated deficit

 

 

(1,321,679

)

 

 

(1,278,246

)

Total stockholders’ equity

 

 

151,065

 

 

 

22,357

 

Total liabilities and stockholders’ equity

 

$

1,351,682

 

 

$

959,991

 

 

(1) As of January 31, 2021, there were 159,851 shares of Box’s Class A common stock outstanding.

BOX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Data)

(Unaudited)

 

 

 

Three Months Ended

 

 

Fiscal Year Ended

 

 

January 31,

 

 

January 31,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue

 

$

198,913

 

 

$

183,585

 

 

$

770,770

 

 

$

696,264

 

Cost of revenue (1)

 

 

58,597

 

 

 

56,719

 

 

 

224,738

 

 

 

215,577

 

Gross profit

 

 

140,316

 

 

 

126,866

 

 

 

546,032

 

 

 

480,687

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development (1)

 

 

48,579

 

 

 

53,161

 

 

 

201,262

 

 

 

199,750

 

Sales and marketing (1)

 

 

68,123

 

 

 

75,451

 

 

 

275,742

 

 

 

317,615

 

General and administrative (1)

 

 

26,892

 

 

 

26,835

 

 

 

106,670

 

 

 

102,794

 

Total operating expenses

 

 

143,594

 

 

 

155,447

 

 

 

583,674

 

 

 

620,159

 

Loss from operations

 

 

(3,278

)

 

 

(28,581

)

 

 

(37,642

)

 

 

(139,472

)

Interest expense, net

 

 

(2,145

)

 

 

(1,197

)

 

 

(7,010

)

 

 

(2,338

)

Other income (loss), net

 

 

796

 

 

 

(288

)

 

 

2,426

 

 

 

(1,128

)

Loss before provision for income taxes

 

 

(4,627

)

 

 

(30,066

)

 

 

(42,226

)

 

 

(142,938

)

Provision for income taxes

 

 

316

 

 

 

324

 

 

 

1,207

 

 

 

1,410

 

Net loss

 

$

(4,943

)

 

$

(30,390

)

 

$

(43,433

)

 

$

(144,348

)

Net loss per share, basic and diluted

 

$

(0.03

)

 

$

(0.20

)

 

$

(0.28

)

 

$

(0.98

)

Weighted-average shares used to compute net loss per share, basic and diluted

 

 

159,172

 

 

 

150,031

 

 

 

155,849

 

 

 

147,762

 

____________________________________________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes stock-based compensation expense as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Fiscal Year Ended

 

 

January 31,

January 31,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cost of revenue

 

$

5,263

 

 

$

4,370

 

 

$

18,936

 

 

$

16,769

 

Research and development

 

 

15,006

 

 

 

17,687

 

 

 

61,145

 

 

 

62,565

 

Sales and marketing

 

 

10,651

 

 

 

9,386

 

 

 

42,015

 

 

 

38,030

 

General and administrative

 

 

7,934

 

 

 

7,620

 

 

 

32,196

 

 

 

28,624

 

Total stock-based compensation

 

$

38,854

 

 

$

39,063

 

 

$

154,292

 

 

$

145,988

 

BOX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

Fiscal Year Ended

 

 

 

January 31,

 

 

January 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(4,943

)

 

$

(30,390

)

 

$

(43,433

)

 

$

(144,348

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

19,096

 

 

 

17,322

 

 

 

75,478

 

 

 

59,424

 

Stock-based compensation expense

 

 

38,854

 

 

 

39,063

 

 

 

154,292

 

 

 

145,988

 

Amortization of deferred commissions

 

 

9,988

 

 

 

7,562

 

 

 

36,053

 

 

 

25,922

 

Other

 

 

1,018

 

 

 

(32

)

 

 

1,071

 

 

 

(147

)

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(112,645

)

 

 

(101,041

)

 

 

(18,875

)

 

 

(34,304

)

Deferred commissions

 

 

(18,751

)

 

 

(17,391

)

 

 

(48,041

)

 

 

(43,962

)

Operating lease right-of-use assets, net

 

 

10,630

 

 

 

9,004

 

 

 

40,726

 

 

 

35,449

 

Prepaid expenses and other assets

 

 

5,714

 

 

 

(3,819

)

 

 

6,348

 

 

 

(7,108

)

Accounts payable

 

 

(1,088

)

 

 

4,101

 

 

 

(12,301

)

 

 

(100

)

Accrued expenses and other liabilities

 

 

10,722

 

 

 

2,541

 

 

 

9,477

 

 

 

(5,851

)

Operating lease liabilities

 

 

(12,305

)

 

 

(10,108

)

 

 

(45,725

)

 

 

(35,058

)

Deferred revenue

 

 

111,250

 

 

 

98,202

 

 

 

41,764

 

 

 

48,808

 

Net cash provided by operating activities

 

 

57,540

 

 

 

15,014

 

 

 

196,834

 

 

 

44,713

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment, net of proceeds from sales

 

 

(1,637

)

 

 

(1,229

)

 

 

(9,052

)

 

 

(5,444

)

Capitalized internal-use software costs

 

 

(1,081

)

 

 

(1,475

)

 

 

(7,438

)

 

 

(7,957

)

Proceeds from sale of a strategic equity investment

 

 

 

 

 

105

 

 

 

107

 

 

 

105

 

Net cash used in investing activities

 

 

(2,718

)

 

 

(2,599

)

 

 

(16,383

)

 

 

(13,296

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of convertible debt, net of issuance costs paid of $8,625

 

 

336,375

 

 

 

 

 

 

336,375

 

 

 

 

Purchase of capped calls related to convertible debt

 

 

(27,773

)

 

 

 

 

 

(27,773

)

 

 

 

Proceeds from borrowings, net of borrowing costs

 

 

 

 

 

 

 

 

30,000

 

 

 

 

Principal payments on borrowings

 

 

(20,000

)

 

 

 

 

 

(40,000

)

 

 

 

Proceeds from exercise of stock options

 

 

387

 

 

 

2,957

 

 

 

10,261

 

 

 

5,965

 

Proceeds from issuances of common stock under employee stock purchase plan

 

 

 

 

 

 

 

 

18,595

 

 

 

23,425

 

Employee payroll taxes paid related to net share settlement of restricted stock units

 

 

(10,541

)

 

 

(8,273

)

 

 

(48,761

)

 

 

(43,328

)

Principal payments of finance lease liabilities

 

 

(13,861

)

 

 

(12,342

)

 

 

(60,020

)

 

 

(38,542

)

Acquisition related contingent consideration

 

 

 

 

 

 

 

 

 

 

 

(936

)

Net cash provided by (used in) financing activities

 

 

264,587

 

 

 

(17,658

)

 

 

218,677

 

 

 

(53,416

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

 

309

 

 

 

(61

)

 

 

797

 

 

 

(171

)

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

 

319,718

 

 

 

(5,304

)

 

 

399,925

 

 

 

(22,170

)

Cash, cash equivalents, and restricted cash, beginning of period

 

 

275,793

 

 

 

200,890

 

 

 

195,586

 

 

 

217,756

 

Cash, cash equivalents, and restricted cash, end of period

 

$

595,511

 

 

$

195,586

 

 

$

595,511

 

 

$

195,586

 

BOX, INC.

RECONCILIATION OF GAAP TO NON-GAAP DATA

(In Thousands, Except Per Share Data and Percentages)

(Unaudited)

 

 

 

Three Months Ended

 

 

Fiscal Year Ended

 

 

 

January 31,

 

 

January 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP operating loss

 

$

(3,278

)

 

$

(28,581

)

 

$

(37,642

)

 

$

(139,472

)

Stock-based compensation

 

 

38,854

 

 

 

39,063

 

 

 

154,292

 

 

 

145,988

 

Acquisition-related expenses

 

 

790

 

 

 

 

 

 

790

 

 

 

 

Fees related to shareholder activism

 

 

 

 

 

199

 

 

 

1,402

 

 

 

1,154

 

Restructuring activities

 

 

 

 

 

1,651

 

 

 

 

 

 

1,651

 

Non-GAAP operating income

 

$

36,366

 

 

$

12,332

 

 

$

118,842

 

 

$

9,321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating margin

 

 

(2

)%

 

(15

)%

 

(5

)%

 

(20

)%

Stock-based compensation

 

 

20

 

 

 

21

 

 

 

20

 

 

 

21

 

Acquisition-related expenses

 

 

 

 

 

 

 

 

 

 

 

 

Fees related to shareholder activism

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring activities

 

 

 

 

 

1

 

 

 

 

 

 

 

Non-GAAP operating margin

 

 

18

%

 

7

%

 

15

%

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(4,943

)

 

$

(30,390

)

 

$

(43,433

)

 

$

(144,348

)

Stock-based compensation

 

 

38,854

 

 

 

39,063

 

 

 

154,292

 

 

 

145,988

 

Amortization of debt discount and issuance costs

 

 

647

 

 

 

 

 

 

647

 

 

 

 

Acquisition-related expenses

 

 

790

 

 

 

 

 

 

790

 

 

 

 

Fees related to shareholder activism

 

 

 

 

 

199

 

 

 

1,402

 

 

 

1,154

 

Restructuring activities

 

 

 

 

 

1,651

 

 

 

 

 

 

1,651

 

Non-GAAP net income

 

$

35,348

 

 

$

10,523

 

 

$

113,698

 

 

$

4,445

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss per share, basic and diluted

 

$

(0.03

)

 

$

(0.20

)

 

$

(0.28

)

 

$

(0.98

)

Stock-based compensation

 

 

0.24

 

 

 

0.26

 

 

 

0.99

 

 

 

0.99

 

Amortization of debt discount and issuance costs

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

 

 

0.01

 

 

 

 

 

 

0.01

 

 

 

 

Fees related to shareholder activism

 

 

 

 

 

 

 

 

0.01

 

 

 

0.01

 

Restructuring activities

 

 

 

 

 

0.01

 

 

 

 

 

 

0.01

 

Non-GAAP net income per share, basic

 

$

0.22

 

 

$

0.07

 

 

$

0.73

 

 

$

0.03

 

Non-GAAP net income per share, diluted

 

$

0.22

 

 

$

0.07

 

 

$

0.70

 

 

$

0.03

 

Weighted-average shares used to compute GAAP net loss per share, basic and diluted

 

 

159,172

 

 

 

150,031

 

 

 

155,849

 

 

 

147,762

 

Weighted-average shares used to compute Non-GAAP net income per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

159,172

 

 

 

150,031

 

 

 

155,849

 

 

 

147,762

 

Diluted

 

 

164,351

 

 

 

155,673

 

 

 

162,310

 

 

 

153,755

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

57,540

 

 

$

15,014

 

 

$

196,834

 

 

$

44,713

 

Purchases of property and equipment, net of proceeds from sales

 

 

(1,637

)

 

 

(1,229

)

 

 

(9,052

)

 

 

(5,444

)

Principal payments of finance lease liabilities

 

 

(13,861

)

 

 

(12,342

)

 

 

(60,020

)

 

 

(38,542

)

Capitalized internally developed software costs

 

 

(1,081

)

 

 

(1,475

)

 

 

(7,438

)

 

 

(7,957

)

Free cash flow

 

$

40,961

 

 

$

(32

)

 

$

120,324

 

 

$

(7,230

)

Net cash used in investing activities

 

$

(2,718

)

 

$

(2,599

)

 

$

(16,383

)

 

$

(13,296

)

Net cash provided by (used in) financing activities

 

$

264,587

 

 

$

(17,658

)

 

$

218,677

 

 

$

(53,416

)

BOX, INC.

RECONCILIATION OF GAAP REVENUE TO BILLINGS

(In Thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

Fiscal Year Ended

 

 

 

January 31,

 

 

January 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP revenue

 

$

198,913

 

 

$

183,585

 

 

$

770,770

 

 

$

696,264

 

Deferred revenue, end of period

 

 

465,613

 

 

 

423,849

 

 

 

465,613

 

 

 

423,849

 

Less: deferred revenue, beginning of period

 

 

(354,363

)

 

 

(325,647

)

 

 

(423,849

)

 

 

(375,041

)

Contract assets, beginning of period

 

 

 

 

 

76

 

 

 

 

 

 

3

 

Less: contract assets, end of period

 

 

(25

)

 

 

 

 

 

(25

)

 

 

 

Billings

 

$

310,138

 

 

$

281,863

 

 

$

812,509

 

 

$

745,075

 

BOX, INC.

RECONCILIATION OF GAAP REVENUE TO BILLINGS

(In Thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

Fiscal Year Ended

 

 

 

April 30, 2021

 

 

January 31, 2022

 

GAAP net loss per share range, basic and diluted

 

$

(0.06

)

$

(0.05

)

 

$

(0.25

)

$

(0.20

)

Stock-based compensation

 

 

0.23

 

 

 

0.23

 

 

 

1.04

 

 

 

1.04

 

Non-GAAP net income per share range, basic

 

$

0.17

 

$

0.18

 

 

$

0.79

 

$

0.84

 

Non-GAAP net income per share range, diluted

 

$

0.16

 

$

0.17

 

 

$

0.76

 

$

0.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares used to compute GAAP net loss per share, basic and diluted

 

160,910

 

 

163,784

 

Weighted-average shares used to compute Non-GAAP net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

160,910

 

 

163,784

 

Diluted

 

165,994

 

 

169,221