REDWOOD CITY, Calif.--(BUSINESS WIRE)--Box, Inc. (NYSE: BOX), the leading enterprise content management and
collaboration platform, today announced financial results for the third
quarter of fiscal 2016, which ended October 31, 2015. During the
quarter, Box added over 4,000 new customers, and added or significantly
expanded deployments with leading enterprises like Amgen, Westfield
Corporation, Sally Beauty Holdings, Grey Global Group, Southwest
Airlines, Nest Labs, and more.
“Enterprises in every industry are moving content to the cloud by
investing in modern platforms that accelerate employee productivity and
replace legacy systems,” said Aaron Levie, co-founder and CEO of Box.
“As our strong revenue growth in Q3 indicates, Box is uniquely
positioned to drive this transition. We continue to deliver innovations
like Box Governance and Box Platform that differentiate us from
competitors and assist our global customers to standardize on Box as
their next-generation content platform.”
“In the third quarter, we delivered strong year-over-year revenue growth
of 38% and billings growth of 37%,” said Dylan Smith, Box co-founder and
CFO. “We continued to make significant progress towards achieving
positive free cash flow in the fourth quarter of our next fiscal year.”
Fiscal Third Quarter Financial Highlights
-
Revenue for the third quarter of fiscal 2016 was a record of $78.7
million, an increase of 38% from the third quarter of fiscal 2015.
-
Billings in the third quarter of fiscal 2016 were a record of $89.4
million, an increase of 37% from the third quarter of fiscal 2015.
-
Non-GAAP operating loss in the third quarter of fiscal 2016 was $37.9
million, or 48% of revenue. This compares to non-GAAP operating loss
of $34.2 million, or 60% of revenue, in the third quarter of fiscal
2015. GAAP operating loss in the third quarter of fiscal 2016 was
$55.0 million, or 70% of revenue. This compares to GAAP operating loss
of $44.8 million, or 78% of revenue, in the third quarter of fiscal
2015.
-
Non-GAAP net loss per share attributable to common stockholders, basic
and diluted, in the third quarter of fiscal 2016 was
$0.31 on 121.8 million shares outstanding, compared to $2.32 in the
third quarter of fiscal 2015 on 15.0 million shares outstanding. GAAP
net loss per share attributable to common stockholders, basic and
diluted, in the third quarter of fiscal 2016 was
$0.45 on 121.8 million shares outstanding, compared to $3.40 in the
third quarter of fiscal 2015 on 15.0 million shares outstanding.
-
Net cash used in operating activities in the third quarter of fiscal
2016 totaled $17.3 million, compared to $21.7 million in the second
quarter of fiscal 2016 and $19.6 million in the third quarter of
fiscal 2015.
-
Cash, cash equivalents, marketable securities, and restricted cash
were $244.0 million as of October 31, 2015, of which $29.1 million was
restricted.
Business Highlights (through October 31, 2015, unless otherwise
noted)
-
Customer Growth and Momentum:
-
Added or significantly expanded deployments with leading
enterprises like Amgen, Westfield Corporation, Sally Beauty
Holdings, Grey Global Group, Southwest Airlines, Nest Labs, and
more.
-
Grew paying customer base to 54,000 businesses, including 55% of
the Fortune 500.
-
Increased number of registered users to over 41 million.
-
Hosted nearly 5,000 attendees, representing thousands of
customers, prospects, and partners from more than 15 different
countries at BoxWorks 2015.
-
Product Innovation:
-
Launched Box
Platform, a new way for Box’s customers, third party
developers, and independent software vendors to build applications
and digital experiences that leverage Box’s world-class content
management technology.
-
Released Box
Capture, Box’s new app for the enterprise that securely
connects an iOS device’s camera to business processes for field
and mobile workers.
-
Announced new capabilities to Box
Governance, including Legal Holds, expanded Information Rights
Management, and Device Trust.
-
Announced support for three
new content viewing experiences in Box -- HD video, DICOM
viewing for medical images like X-rays and MRIs, and
interactive 3D.
-
Strategic Partnerships:
Outlook
-
Q4 FY16 Guidance: Revenue is expected to be in the range of
$81 million to $82 million, and non-GAAP operating margin is expected
to be in the range of (43%) to (44%). Weighted average diluted shares
outstanding is expected to be approximately 123 million.
-
Full Year FY16 Guidance: Revenue is expected to be in the
range of $299 million to $300 million, raised from previous guidance
of $295 million to $297 million. Non-GAAP operating margin is expected
to be approximately (46%), raised from previous guidance of (47%) to
(49%). Weighted average diluted shares outstanding is expected to be
approximately 121 million.
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. While a reconciliation of non-GAAP guidance measures to
corresponding GAAP measures is not available on a forward-looking basis,
Box has provided a reconciliation of GAAP to non-GAAP financial measures
in the financial statement tables for its third quarter fiscal 2016
non-GAAP results included in 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 Box’s third
quarter fiscal 2016 earnings call will be available through Box’s
Investor Relations website at www.box.com/investors
and will be available before being archived for a period of 90 days.
The access details for the live conference call are:
+ 1-888-632-3382, (U.S. and Canada), conference ID: BOXQ316
+ 1-785-424-1667 (international), conference ID: BOXQ316
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:
+ 1-800-695-1564 (U.S. and Canada)
+ 1-402-530-9025 (international)
Box has used, and intends to continue to use, its Investor Relations
website (www.box.com/investors),
as well as certain Twitter accounts (@boxhq, @levie and @boxincir), as
means of disclosing material non-public information and for complying
with its disclosure obligations under Regulation FD.
This press release, the financial tables, as well as other supplemental
information including the reconciliations of certain non-GAAP measures
to their nearest comparable GAAP 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 its ability to achieve positive free cash flow,
profitability, planned investments, planned product enhancements, as
well as revenue, non-GAAP operating margin and weighted average diluted
outstanding share count expectations for Box’s fourth fiscal quarter and
fiscal year 2016 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; (2) delays or
reductions in information technology spending; (3) factors related to
Box’s intensely 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-based Enterprise Content
Collaboration market; (5) risks associated with Box’s ability to manage
its rapid growth effectively; (6) Box’s limited operating history, which
makes it difficult to predict future results; (7) the risk that Box’s
customers do not renew their subscriptions or expand their use of Box’s
services; (8) Box’s ability to provide successful enhancements, new
features and modifications to its platform and services; (9) actual or
perceived security vulnerabilities in Box’s services or any breaches of
Box’s security controls; and (10) Box’s ability to realize the expected
benefits of its third-party partnerships.
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 Annual Report on Form 10-K
filed for the fiscal year ended January 31, 2015 and the Quarterly
Report on Form 10-Q filed for the fiscal quarter ended July 31, 2015.
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
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, including non-GAAP operating
loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss
attributable to common stockholders, non-GAAP net loss per share
attributable to common stockholders and billings (collectively, the
“non-GAAP financial measures”). The presentation of non-GAAP financial
measures 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, please see the tables captioned
"Reconciliation of GAAP to non-GAAP data” which are included at the end
of this release.
Box uses these non-GAAP financial measures 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 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 in
assessing Box’s performance and when planning, forecasting, and
analyzing future periods. These non-GAAP financial measures 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 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.
Non-GAAP operating loss and non-GAAP operating margin. Box
defines non-GAAP operating loss as operating 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 loss divided by revenue.
Although stock-based compensation 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 stock-based compensation 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,
one that is not typically affected by operations during any particular
period. Box further excludes legal settlement costs because they are
considered by management to be special items outside Box’s core
operating results.
Non-GAAP net loss, non-GAAP net loss attributable to common stock
holders, and non-GAAP net loss per share attributable to common
stockholders. Box defines non-GAAP net loss as net loss excluding
expenses related to SBC, intangible assets amortization, remeasurement
of redeemable convertible preferred stock warrant liability, deemed
dividend on the conversion of Series F redeemable convertible preferred
stock, and as applicable, other special items. Box defines non-GAAP net
loss attributable to common stockholders as net loss attributable to
common stockholders excluding expenses related to SBC, intangible assets
amortization, remeasurement of redeemable convertible preferred stock
warrant liability, accretion of redeemable convertible preferred stock,
deemed dividend on the conversion of Series F redeemable convertible
preferred stock, and as applicable, other special items. Box defines
non-GAAP net loss per share attributable to common stockholders as
non-GAAP net loss attributable to common stockholders divided by the
weighted average outstanding shares. Box excludes remeasurement of
redeemable convertible preferred stock warrant liability, accretion of
redeemable convertible preferred stock, deemed dividend on the
conversion of Series F redeemable convertible preferred stock, and as
applicable, other special items because they are considered by
management to be outside Box’s core operating results.
Billings. Box defines billings as revenue plus the change in
deferred revenue in the period.
The accompanying tables have more details on the non-GAAP financial
measures that are most directly comparable to GAAP financial measures
and the related reconciliations between these financial measures.
About Box
Founded in 2005, Box (NYSE:BOX) is transforming the way people and
organizations work so they can achieve their greatest ambitions. As the
leading enterprise software platform for content collaboration, Box
helps businesses of all sizes in every industry securely access and
manage their critical information in the cloud. Box is headquartered in
Redwood City, CA, with offices across the United States, Europe and
Asia. To learn more about Box, visit www.box.com.
BOX, INC.
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
October 31,
|
|
|
January 31,
|
|
|
|
|
2015
|
|
|
2015
|
|
|
|
|
(unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
189,695
|
|
|
|
$
|
330,436
|
|
Marketable securities
|
|
|
|
|
25,204
|
|
|
|
|
—
|
|
Accounts receivable, net
|
|
|
|
|
64,368
|
|
|
|
|
54,174
|
|
Prepaid expenses, restricted cash and other current assets
|
|
|
|
|
21,656
|
|
|
|
|
12,132
|
|
Deferred commissions
|
|
|
|
|
9,606
|
|
|
|
|
9,487
|
|
Total current assets
|
|
|
|
|
310,529
|
|
|
|
|
406,229
|
|
Property and equipment, net
|
|
|
|
|
113,543
|
|
|
|
|
58,446
|
|
Intangible assets, net
|
|
|
|
|
5,365
|
|
|
|
|
6,343
|
|
Goodwill
|
|
|
|
|
14,301
|
|
|
|
|
11,242
|
|
Restricted cash
|
|
|
|
|
28,332
|
|
|
|
|
3,367
|
|
Other long-term assets
|
|
|
|
|
7,916
|
|
|
|
|
7,039
|
|
TOTAL ASSETS
|
|
|
|
$
|
479,986
|
|
|
|
$
|
492,666
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
28,906
|
|
|
|
$
|
17,486
|
|
Accrued compensation and benefits
|
|
|
|
|
20,166
|
|
|
|
|
20,486
|
|
Accrued expenses and other current liabilities
|
|
|
|
|
30,587
|
|
|
|
|
16,862
|
|
Capital lease obligations, current
|
|
|
|
|
2,894
|
|
|
|
|
625
|
|
Deferred revenue
|
|
|
|
|
128,589
|
|
|
|
|
107,893
|
|
Deferred rent
|
|
|
|
|
663
|
|
|
|
|
2,701
|
|
Total current liabilities
|
|
|
|
|
211,805
|
|
|
|
|
166,053
|
|
Debt, non-current
|
|
|
|
|
40,000
|
|
|
|
|
40,000
|
|
Capital lease obligations, non-current
|
|
|
|
|
4,696
|
|
|
|
|
1,238
|
|
Deferred revenue, non-current
|
|
|
|
|
12,558
|
|
|
|
|
12,164
|
|
Deferred rent, non-current
|
|
|
|
|
37,301
|
|
|
|
|
3,890
|
|
Other long-term liabilities
|
|
|
|
|
1,739
|
|
|
|
|
1,192
|
|
Total liabilities
|
|
|
|
|
308,099
|
|
|
|
|
224,537
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
12
|
|
|
|
|
12
|
|
Additional paid-in capital
|
|
|
|
|
855,093
|
|
|
|
|
798,743
|
|
Treasury stock
|
|
|
|
|
(1,177
|
)
|
|
|
|
(1,177
|
)
|
Accumulated other comprehensive loss
|
|
|
|
|
(74
|
)
|
|
|
|
(56
|
)
|
Accumulated deficit
|
|
|
|
|
(681,967
|
)
|
|
|
|
(529,393
|
)
|
Total stockholders’ equity
|
|
|
|
|
171,887
|
|
|
|
|
268,129
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
$
|
479,986
|
|
|
|
$
|
492,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOX, INC.
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31,
|
|
|
|
Nine Months Ended October 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
|
78,651
|
|
|
|
$
|
57,048
|
|
|
|
|
$
|
217,722
|
|
|
|
$
|
153,801
|
|
Cost of revenue 1, 2
|
|
|
|
|
23,630
|
|
|
|
|
12,518
|
|
|
|
|
|
61,419
|
|
|
|
|
32,579
|
|
Gross profit
|
|
|
|
|
55,021
|
|
|
|
|
44,530
|
|
|
|
|
|
156,303
|
|
|
|
|
121,222
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development 2
|
|
|
|
|
26,324
|
|
|
|
|
17,172
|
|
|
|
|
|
75,911
|
|
|
|
|
48,415
|
|
Sales and marketing 2
|
|
|
|
|
63,972
|
|
|
|
|
55,257
|
|
|
|
|
|
178,927
|
|
|
|
|
152,354
|
|
General and administrative 1, 2
|
|
|
|
|
19,757
|
|
|
|
|
16,855
|
|
|
|
|
|
52,904
|
|
|
|
|
41,276
|
|
Total operating expenses
|
|
|
|
|
110,053
|
|
|
|
|
89,284
|
|
|
|
|
|
307,742
|
|
|
|
|
242,045
|
|
Loss from operations
|
|
|
|
|
(55,032
|
)
|
|
|
|
(44,754
|
)
|
|
|
|
|
(151,439
|
)
|
|
|
|
(120,823
|
)
|
Remeasurement of redeemable convertible preferred stock warrant
liability
|
|
|
|
|
—
|
|
|
|
|
(54
|
)
|
|
|
|
|
—
|
|
|
|
|
140
|
|
Interest expense, net
|
|
|
|
|
(30
|
)
|
|
|
|
(663
|
)
|
|
|
|
|
(773
|
)
|
|
|
|
(1,450
|
)
|
Other income, net
|
|
|
|
|
165
|
|
|
|
|
105
|
|
|
|
|
|
57
|
|
|
|
|
41
|
|
Loss before provision (benefit) for income taxes
|
|
|
|
|
(54,897
|
)
|
|
|
|
(45,366
|
)
|
|
|
|
|
(152,155
|
)
|
|
|
|
(122,092
|
)
|
Provision (benefit) for income taxes
|
|
|
|
|
220
|
|
|
|
|
55
|
|
|
|
|
|
420
|
|
|
|
|
(598
|
)
|
Net loss
|
|
|
|
|
(55,117
|
)
|
|
|
|
(45,421
|
)
|
|
|
|
|
(152,575
|
)
|
|
|
|
(121,494
|
)
|
Accretion of redeemable convertible preferred stock
|
|
|
|
|
—
|
|
|
|
|
(5,743
|
)
|
|
|
|
|
—
|
|
|
|
|
(7,577
|
)
|
Net loss attributable to common stockholders
|
|
|
|
$
|
(55,117
|
)
|
|
|
$
|
(51,164
|
)
|
|
|
|
$
|
(152,575
|
)
|
|
|
$
|
(129,071
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders, basic and
diluted
|
|
|
|
$
|
(0.45
|
)
|
|
|
$
|
(3.40
|
)
|
|
|
|
$
|
(1.27
|
)
|
|
|
$
|
(8.94
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used to compute net loss per share
attributable to common stockholders, basic and diluted
|
|
|
|
|
121,796
|
|
|
|
|
15,041
|
|
|
|
|
|
120,537
|
|
|
|
|
14,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Includes intangible assets amortization as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31,
|
|
|
|
Nine Months Ended October 31,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
Cost of revenue
|
|
|
|
|
$
|
1,431
|
|
|
|
$
|
966
|
|
|
|
$
|
4,010
|
|
|
$
|
2,377
|
General and administrative
|
|
|
|
|
|
39
|
|
|
|
|
43
|
|
|
|
|
117
|
|
|
|
128
|
Total intangible assets amortization
|
|
|
|
|
$
|
1,470
|
|
|
|
$
|
1,009
|
|
|
|
$
|
4,127
|
|
|
$
|
2,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 Includes stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31,
|
|
|
|
Nine Months Ended October 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
Cost of revenue
|
|
|
$
|
1,272
|
|
|
$
|
472
|
|
|
|
$
|
3,164
|
|
|
$
|
1,102
|
|
Research and development
|
|
|
|
6,455
|
|
|
|
3,207
|
|
|
|
|
18,021
|
|
|
|
8,220
|
|
Sales and marketing
|
|
|
|
5,005
|
|
|
|
3,122
|
|
|
|
|
14,030
|
|
|
|
8,306
|
|
General and administrative
|
|
|
|
2,672
|
|
|
|
1,712
|
|
|
|
|
7,632
|
|
|
|
4,716
|
|
Total stock-based compensation
|
|
|
$
|
15,404
|
|
|
$
|
8,513
|
|
|
|
$
|
42,847
|
|
|
$
|
22,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOX, INC.
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31,
|
|
|
|
Nine Months Ended October 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
$
|
(55,117
|
)
|
|
|
$
|
(45,421
|
)
|
|
|
|
$
|
(152,575
|
)
|
|
|
$
|
(121,494
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
9,936
|
|
|
|
|
7,623
|
|
|
|
|
|
28,967
|
|
|
|
|
19,952
|
|
Stock-based compensation expense
|
|
|
|
|
15,404
|
|
|
|
|
8,513
|
|
|
|
|
|
42,847
|
|
|
|
|
22,344
|
|
Amortization of deferred commissions
|
|
|
|
|
3,974
|
|
|
|
|
3,005
|
|
|
|
|
|
11,502
|
|
|
|
|
8,837
|
|
Remeasurement of redeemable convertible preferred stock warrant
liability
|
|
|
|
|
—
|
|
|
|
|
54
|
|
|
|
|
|
—
|
|
|
|
|
(140
|
)
|
Release of deferred tax valuation allowance
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
(825
|
)
|
Other
|
|
|
|
|
457
|
|
|
|
|
113
|
|
|
|
|
|
557
|
|
|
|
|
426
|
|
Changes in operating assets and liabilities, net of effects of
acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(10,321
|
)
|
|
|
|
(3,762
|
)
|
|
|
|
|
(10,194
|
)
|
|
|
|
2,796
|
|
Deferred commissions
|
|
|
|
|
(3,729
|
)
|
|
|
|
(3,737
|
)
|
|
|
|
|
(11,896
|
)
|
|
|
|
(9,686
|
)
|
Prepaid expenses, restricted cash and other assets
|
|
|
|
|
1,565
|
|
|
|
|
2,020
|
|
|
|
|
|
(25,547
|
)
|
|
|
|
(2,508
|
)
|
Accounts payable
|
|
|
|
|
(6,989
|
)
|
|
|
|
1,537
|
|
|
|
|
|
1,879
|
|
|
|
|
2,255
|
|
Accrued expenses and other liabilities
|
|
|
|
|
(937
|
)
|
|
|
|
2,627
|
|
|
|
|
|
626
|
|
|
|
|
(3,907
|
)
|
Deferred rent
|
|
|
|
|
17,616
|
|
|
|
|
(221
|
)
|
|
|
|
|
21,558
|
|
|
|
|
2,031
|
|
Deferred revenue
|
|
|
|
|
10,798
|
|
|
|
|
8,086
|
|
|
|
|
|
21,090
|
|
|
|
|
10,608
|
|
Net cash used in operating activities
|
|
|
|
|
(17,343
|
)
|
|
|
|
(19,563
|
)
|
|
|
|
|
(71,186
|
)
|
|
|
|
(69,311
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of marketable securities
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
(112,521
|
)
|
|
|
|
—
|
|
Sales of marketable securities
|
|
|
|
|
63,062
|
|
|
|
|
—
|
|
|
|
|
|
66,911
|
|
|
|
|
—
|
|
Maturities of marketable securities
|
|
|
|
|
13,492
|
|
|
|
|
—
|
|
|
|
|
|
20,145
|
|
|
|
|
—
|
|
Purchases of property and equipment
|
|
|
|
|
(19,998
|
)
|
|
|
|
(7,510
|
)
|
|
|
|
|
(47,842
|
)
|
|
|
|
(29,764
|
)
|
Acquisition and purchases of intangible assets, net of cash acquired
|
|
|
|
|
(53
|
)
|
|
|
|
(100
|
)
|
|
|
|
|
(271
|
)
|
|
|
|
(202
|
)
|
Net cash provided by (used in) investing activities
|
|
|
|
$
|
56,503
|
|
|
|
$
|
(7,610
|
)
|
|
|
|
$
|
(73,578
|
)
|
|
|
$
|
(29,966
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOX, INC.
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
|
(In thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31,
|
|
|
|
Nine Months Ended October 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
2015
|
|
2014
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment of initial public offering costs
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
|
$
|
(2,172
|
)
|
|
|
$
|
(2,748
|
)
|
Proceeds from borrowings, net of borrowing costs
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
12,000
|
|
Principal payments on borrowings
|
|
|
|
|
—
|
|
|
|
|
(6,000
|
)
|
|
|
|
|
—
|
|
|
|
|
(6,000
|
)
|
Proceeds from issuance of redeemable convertible preferred stock,
net of issuance costs
|
|
|
|
|
—
|
|
|
|
|
(5
|
)
|
|
|
|
|
—
|
|
|
|
|
149,614
|
|
Proceeds from exercise of stock options, net of repurchases of early
exercised stock options
|
|
|
|
|
2,734
|
|
|
|
|
746
|
|
|
|
|
|
5,148
|
|
|
|
|
2,851
|
|
Proceeds from issuances of common stock under employee stock
purchase plan
|
|
|
|
|
10,282
|
|
|
|
|
—
|
|
|
|
|
|
10,282
|
|
|
|
|
—
|
|
Employee payroll taxes paid related to net share settlement of
restricted stock units
|
|
|
|
|
(2,105
|
)
|
|
|
|
—
|
|
|
|
|
|
(8,292
|
)
|
|
|
|
—
|
|
Payments of capital lease obligations
|
|
|
|
|
(508
|
)
|
|
|
|
—
|
|
|
|
|
|
(928
|
)
|
|
|
|
—
|
|
Net cash provided by (used in) financing activities
|
|
|
|
|
10,403
|
|
|
|
|
(5,259
|
)
|
|
|
|
|
4,038
|
|
|
|
|
155,717
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
13
|
|
|
|
|
(16
|
)
|
|
|
|
|
(15
|
)
|
|
|
|
(21
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
|
|
49,576
|
|
|
|
|
(32,448
|
)
|
|
|
|
|
(140,741
|
)
|
|
|
|
56,419
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
140,119
|
|
|
|
|
197,718
|
|
|
|
|
|
330,436
|
|
|
|
|
108,851
|
|
Cash and cash equivalents, end of period
|
|
|
|
$
|
189,695
|
|
|
|
$
|
165,270
|
|
|
|
|
$
|
189,695
|
|
|
|
$
|
165,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOX, INC.
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP DATA
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31,
|
|
|
|
Nine Months Ended October 31,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating loss
|
|
|
|
|
$
|
(55,032
|
)
|
|
|
$
|
(44,754
|
)
|
|
|
|
$
|
(151,439
|
)
|
|
|
$
|
(120,823
|
)
|
Stock-based compensation
|
|
|
|
|
|
15,404
|
|
|
|
|
8,513
|
|
|
|
|
|
42,847
|
|
|
|
|
22,344
|
|
Intangible assets amortization
|
|
|
|
|
|
1,470
|
|
|
|
|
1,009
|
|
|
|
|
|
4,127
|
|
|
|
|
2,505
|
|
Expenses related to a legal verdict
|
|
|
|
|
|
299
|
|
|
|
|
1,000
|
|
|
|
|
|
1,277
|
|
|
|
|
1,000
|
|
Non-GAAP operating loss
|
|
|
|
|
$
|
(37,859
|
)
|
|
|
$
|
(34,232
|
)
|
|
|
|
$
|
(103,188
|
)
|
|
|
$
|
(94,974
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating margin
|
|
|
|
|
|
(70
|
)%
|
|
|
|
(78
|
)%
|
|
|
|
|
(70
|
)%
|
|
|
|
(79
|
)%
|
Stock-based compensation
|
|
|
|
|
|
20
|
|
|
|
|
14
|
|
|
|
|
|
20
|
|
|
|
|
15
|
|
Intangible assets amortization
|
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
|
2
|
|
|
|
|
2
|
|
Expenses related to a legal verdict
|
|
|
|
|
|
—
|
|
|
|
|
2
|
|
|
|
|
|
1
|
|
|
|
|
—
|
|
Non-GAAP operating margin
|
|
|
|
|
|
(48
|
)%
|
|
|
|
(60
|
)%
|
|
|
|
|
(47
|
)%
|
|
|
|
(62
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
|
|
|
$
|
(55,117
|
)
|
|
|
$
|
(45,421
|
)
|
|
|
|
$
|
(152,575
|
)
|
|
|
$
|
(121,494
|
)
|
Stock-based compensation
|
|
|
|
|
|
15,404
|
|
|
|
|
8,513
|
|
|
|
|
|
42,847
|
|
|
|
|
22,344
|
|
Intangible assets amortization
|
|
|
|
|
|
1,470
|
|
|
|
|
1,009
|
|
|
|
|
|
4,127
|
|
|
|
|
2,505
|
|
Expenses related to a legal verdict
|
|
|
|
|
|
299
|
|
|
|
|
1,000
|
|
|
|
|
|
1,277
|
|
|
|
|
1,000
|
|
Remeasurement of redeemable convertible preferred stock warrant
liability
|
|
|
|
|
|
—
|
|
|
|
|
54
|
|
|
|
|
|
—
|
|
|
|
|
(140
|
)
|
Non-GAAP net loss
|
|
|
|
|
$
|
(37,944
|
)
|
|
|
$
|
(34,845
|
)
|
|
|
|
$
|
(104,324
|
)
|
|
|
$
|
(95,785
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss attributable to common stockholders
|
|
|
|
|
$
|
(55,117
|
)
|
|
|
$
|
(51,164
|
)
|
|
|
|
$
|
(152,575
|
)
|
|
|
$
|
(129,071
|
)
|
Stock-based compensation
|
|
|
|
|
|
15,404
|
|
|
|
|
8,513
|
|
|
|
|
|
42,847
|
|
|
|
|
22,344
|
|
Intangible assets amortization
|
|
|
|
|
|
1,470
|
|
|
|
|
1,009
|
|
|
|
|
|
4,127
|
|
|
|
|
2,505
|
|
Expenses related to a legal verdict
|
|
|
|
|
|
299
|
|
|
|
|
1,000
|
|
|
|
|
|
1,277
|
|
|
|
|
1,000
|
|
Remeasurement of redeemable convertible preferred stock warrant
liability
|
|
|
|
|
|
—
|
|
|
|
|
54
|
|
|
|
|
|
—
|
|
|
|
|
(140
|
)
|
Accretion of redeemable convertible preferred stock
|
|
|
|
|
|
—
|
|
|
|
|
5,743
|
|
|
|
|
|
—
|
|
|
|
|
7,577
|
|
Non-GAAP net loss attributable to common stockholders
|
|
|
|
|
$
|
(37,944
|
)
|
|
|
$
|
(34,845
|
)
|
|
|
|
$
|
(104,324
|
)
|
|
|
$
|
(95,785
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOX, INC.
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP DATA (CONTINUED)
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31,
|
|
|
|
Nine Months Ended October 31,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share attributable to common stockholders, basic
and diluted
|
|
|
|
|
$
|
(0.45
|
)
|
|
|
$
|
(3.40
|
)
|
|
|
|
$
|
(1.27
|
)
|
|
|
$
|
(8.94
|
)
|
Stock-based compensation
|
|
|
|
|
|
0.13
|
|
|
|
|
0.56
|
|
|
|
|
|
0.36
|
|
|
|
|
1.56
|
|
Intangible assets amortization
|
|
|
|
|
|
0.01
|
|
|
|
|
0.07
|
|
|
|
|
|
0.03
|
|
|
|
|
0.17
|
|
Expenses related to a legal verdict
|
|
|
|
|
|
—
|
|
|
|
|
0.07
|
|
|
|
|
|
0.01
|
|
|
|
|
0.07
|
|
Remeasurement of redeemable convertible preferred stock warrant
liability
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
(0.01
|
)
|
Accretion of redeemable convertible preferred stock
|
|
|
|
|
|
—
|
|
|
|
|
0.38
|
|
|
|
|
|
—
|
|
|
|
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per share attributable to common stockholders,
basic and diluted
|
|
|
|
|
$
|
(0.31
|
)
|
|
|
$
|
(2.32
|
)
|
|
|
|
$
|
(0.87
|
)
|
|
|
$
|
(6.63
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used to compute net loss per share
attributable to common stockholders, basic and diluted
|
|
|
|
|
|
121,796
|
|
|
|
|
15,041
|
|
|
|
|
|
120,537
|
|
|
|
|
14,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOX, INC.
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP REVENUE TO BILLINGS
|
(In thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
|
|
Nine Months Ended
October 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP revenue
|
|
|
|
$
|
78,651
|
|
|
|
$
|
57,048
|
|
|
|
|
$
|
217,722
|
|
|
|
$
|
153,801
|
|
Deferred revenue, end of period
|
|
|
|
|
141,147
|
|
|
|
|
100,680
|
|
|
|
|
|
141,147
|
|
|
|
|
100,680
|
|
Less: deferred revenue, beginning of period
|
|
|
|
|
(130,349
|
)
|
|
|
|
(92,594
|
)
|
|
|
|
|
(120,057
|
)
|
|
|
|
(90,072
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Billings
|
|
|
|
$
|
89,449
|
|
|
|
$
|
65,134
|
|
|
|
|
$
|
238,812
|
|
|
|
$
|
164,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|