LOS ALTOS, Calif.--(BUSINESS WIRE)--Box, Inc. (NYSE:BOX), the leading enterprise content management and
collaboration platform, today announced financial results for the second
quarter of fiscal 2016, which ended July 31, 2015. During the quarter,
Box surpassed 50,000 customers globally, adding or expanding deployments
with thousands of companies, including Airbnb, Alcoa, Cushman &
Wakefield, Lionsgate, Limited Brands, Uber, and IBM.
"We delivered another strong quarter with year over year revenue growth
of 43% and billings growth of 45% driven by new and expanding customer
deployments," said Aaron Levie, co-founder and CEO of Box. “We continue
to invest in our core platform while adding new products like Enterprise
Key Management and Governance that augment our ability to capture demand
in the broader enterprise content management market. Later this month at
BoxWorks, we’ll announce several more innovations and showcase how our
customers are leveraging Box to transform their businesses.”
“We continued to execute on our path to profitability by delivering
improved non-GAAP operating margin,” said Dylan Smith, co-founder and
CFO of Box. “While we continue to invest in our large market opportunity
and solidify our leadership position, our business model allows us to
drive gains in operational efficiency as we scale.”
Fiscal Second Quarter Financial Highlights
-
Revenue was $73.5 million for the second quarter of fiscal 2016, an
increase of 43% from the second quarter of fiscal 2015.
-
Billings in the second quarter of fiscal 2016 were $79.6 million, an
increase of 45% from the second quarter of fiscal 2015.
-
Non-GAAP operating loss in the second quarter of fiscal 2016 was $32.7
million, or 45% of revenue. This compares to non-GAAP operating loss
of $29.4 million, or 57% of revenue, in the second quarter of fiscal
2015. GAAP operating loss in the second quarter of fiscal 2016 was
$49.8 million, or 68% of revenue. This compares to GAAP operating loss
of $38.3 million, or 74% of revenue, in the second quarter of fiscal
2015.
-
Non-GAAP net loss per share attributable to common stockholders, basic
and diluted, in the second quarter of fiscal 2016 was $0.28 on 120.4
million shares outstanding, compared to $2.01 in the second quarter of
fiscal 2015 on 14.5 million shares outstanding. GAAP net loss per
share attributable to common stockholders, basic and diluted, in the
second quarter of fiscal 2016 was $0.42 on 120.4 million shares
outstanding, compared to $2.71 in the second quarter of fiscal 2015 on
14.5 million shares outstanding.
-
Net cash used in operating activities in the second quarter of fiscal
2016 totaled $21.7 million. This compares to net cash used in
operating activities of $26.3 million in the second quarter of fiscal
2015.
-
Cash, cash equivalents and marketable securities were $242.2 million
as of July 31, 2015. In addition, we have restricted cash of $28.4
million primarily related to our leased facilities.
Business Highlights (through July 31, 2015, unless otherwise
noted)
-
Customer Growth:
-
Added IBM to the growing list of leading global organizations such
as GE, the Department of Justice, Schneider Electric and Procter &
Gamble that have deployed Box.
-
Added or expanded deployments with thousands of companies,
surpassing 50,000 paying customers globally, including more than
52% of the Fortune 500 and 28% of the Global 2000.
-
Surpassed 39 million registered users.
-
Partner Momentum:
-
Announced a major global
partnership with IBM. Under the agreement, Box and IBM will:
-
Integrate Box with IBM’s industry-leading enterprise content
management, analytics, social collaboration, and security
products, and jointly deliver solutions to market
internationally.
-
Incorporate Box technology into select IBM MobileFirst for iOS
apps.
-
Leverage IBM’s salesforce and Global Business Services
professionals to help clients deploy and integrate Box
capabilities with existing data and systems.
-
Introduced Microsoft
Office Online partnership to extend the reach of Box’s
powerful integrations with Office 365 for the desktop, Office on
iOS and Outlook.
-
Technology and Market Leadership
-
New Executive Leadership
-
Announced in August 2015 that former CEO and General Manager of
EMC’s Syncplicity business unit, Jeetu Patel, joined
Box as SVP of Platform and Chief Strategy Officer to expand Box’s
platform business.
-
Welcomed Paul
Chapman, previously Chief Information Officer (CIO) of HP
Software, as Box’s CIO to drive the company’s global IT strategy
and initiatives to further support the company’s growing workforce
and customer base.
-
Product Innovation:
-
Introduced the general
availability of Box Governance to offer customers a new
approach to seamlessly manage the entire lifecycle of business
documents, from creation to retention and disposition.
-
Announced in August 2015 the availability
of three new enhancements to Box’s metadata service, including
metadata templates in the admin console, metadata APIs, and
syncing metadata from third party systems.
-
Continued Execution in Box for Industries:
-
Marked the one-year anniversary of Box for Industries, which has
driven new customers in all three initial industries, including
Dignity Health, MD Anderson Cancer Center, and Mount Sinai Health
System in Box for Healthcare; Viacom, Discovery Communications,
and Legendary Pictures in Box for Media & Entertainment; and
Barneys New York, Neiman Marcus, and Sephora in Box for Retail.
-
Hired Adam Ross, previously of Nasdaq, as Box’s new Financial
Services lead in August 2015 and launched FINRA
and SEC compliance capabilities for Box for the Financial
Services vertical.
-
Announced that Box.org
now powers over 3,000 nonprofits, sustaining strong
partnerships with TechSoup Global, MemberPlanet and
Exponent Partners.
-
Launched Box
for Education in August 2015 to deliver tailored solutions
globally to the education industry.
Outlook
-
Q3 FY16 Guidance: Revenue is expected to be in the range of $76
to $77 million, and non-GAAP operating margin is expected to be in the
range of (49%) to (50%). Weighted average diluted shares outstanding
is expected to be approximately 122 million.
-
Full Year FY16 Guidance: Revenue is expected to be in the range
of $295 to $297 million, compared to previous guidance of $286 to $290
million. Non-GAAP operating margin is expected to be in the range of
(47%) to (49%), compared to previous guidance of (49%) to (51%).
Weighted average diluted shares outstanding is expected to be
approximately 122 million.
All forward-looking non-GAAP financial measures contained in this
section “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 second 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 and
business highlights. A live audio webcast of Box’s second quarter fiscal
2016 earnings call will be available through Box’s Investor Relations
website at www.box.com/investors
and will be archived for a period of 90 days.
The access details for the live conference call are:
+
1-877-876-9177 (U.S. and Canada), conference ID: BOXQ216
+
1-785-424-1666 (international), conference ID: BOXQ216
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:
+ 1-800-723-0479 (U.S. and Canada)
+
1-402-220-2650 (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 future
profitability, cash flow, planned investments, planned product
enhancements, as well as revenue, non-GAAP operating margin and weighted
average diluted outstanding share count expectations for Box’s third
fiscal quarter and fiscal year 2016 in the paragraphs under “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 Management 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 services; and (9)
actual or perceived security vulnerabilities in Box’s services or any
beaches of Box’s security controls.
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 April 30, 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 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 research and development
efforts, trade names and customer relationships, 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 verdict amounts because they are
considered by management to be special items outside Box’s core
operating results.
Non-GAAP net loss, net loss attributable to common stock holders, and
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, 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.
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
world's the leading enterprise content management and collaboration
platform, Box helps businesses of all sizes in every industry securely
access and manage their critical information in the cloud. Box is
headquartered in Los Altos, 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)
|
|
|
|
July 31,
|
|
January 31,
|
|
|
2015
|
|
2015
|
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
140,119
|
|
|
$
|
330,436
|
|
Marketable securities
|
|
|
102,120
|
|
|
|
—
|
|
Accounts receivable, net
|
|
|
54,047
|
|
|
|
54,174
|
|
Prepaid expenses, restricted cash and other current assets
|
|
|
37,465
|
|
|
|
12,132
|
|
Deferred commissions
|
|
|
9,598
|
|
|
|
9,487
|
|
Total current assets
|
|
|
343,349
|
|
|
|
406,229
|
|
Property and equipment, net
|
|
|
79,629
|
|
|
|
58,446
|
|
Intangible assets, net
|
|
|
6,836
|
|
|
|
6,343
|
|
Goodwill
|
|
|
14,301
|
|
|
|
11,242
|
|
Restricted cash
|
|
|
27,617
|
|
|
|
3,367
|
|
Other long-term assets
|
|
|
8,269
|
|
|
|
7,039
|
|
TOTAL ASSETS
|
|
$
|
480,001
|
|
|
$
|
492,666
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
22,980
|
|
|
$
|
17,486
|
|
Accrued compensation and benefits
|
|
|
23,278
|
|
|
|
20,486
|
|
Accrued expenses and other current liabilities
|
|
|
21,918
|
|
|
|
16,862
|
|
Capital lease obligations, current
|
|
|
1,915
|
|
|
|
625
|
|
Deferred revenue
|
|
|
118,289
|
|
|
|
107,893
|
|
Deferred rent
|
|
|
1,087
|
|
|
|
2,701
|
|
Total current liabilities
|
|
|
189,467
|
|
|
|
166,053
|
|
Debt, non-current
|
|
|
40,000
|
|
|
|
40,000
|
|
Capital lease obligations, non-current
|
|
|
3,273
|
|
|
|
1,238
|
|
Deferred revenue, non-current
|
|
|
12,060
|
|
|
|
12,164
|
|
Deferred rent, non-current
|
|
|
32,841
|
|
|
|
3,890
|
|
Other long-term liabilities
|
|
|
1,718
|
|
|
|
1,192
|
|
Total liabilities
|
|
|
279,359
|
|
|
|
224,537
|
|
Stockholders’ equity:
|
|
|
|
|
Common stock
|
|
|
12
|
|
|
|
12
|
|
Additional paid-in capital
|
|
|
828,749
|
|
|
|
798,743
|
|
Treasury stock
|
|
|
(1,177
|
)
|
|
|
(1,177
|
)
|
Accumulated other comprehensive loss
|
|
|
(91
|
)
|
|
|
(56
|
)
|
Accumulated deficit
|
|
|
(626,851
|
)
|
|
|
(529,393
|
)
|
Total stockholders’ equity
|
|
|
200,642
|
|
|
|
268,129
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
$
|
480,001
|
|
|
$
|
492,666
|
|
|
|
|
|
|
|
|
|
|
BOX, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
July 31,
|
|
July 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenue
|
|
$
|
73,450
|
|
|
$
|
51,423
|
|
|
$
|
139,071
|
|
|
$
|
96,753
|
|
Cost of revenue 1, 2
|
|
|
20,636
|
|
|
|
10,833
|
|
|
|
37,789
|
|
|
|
20,061
|
|
Gross profit
|
|
|
52,814
|
|
|
|
40,590
|
|
|
|
101,282
|
|
|
|
76,692
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and development 2
|
|
|
26,453
|
|
|
|
16,345
|
|
|
|
49,587
|
|
|
|
31,243
|
|
Sales and marketing 2
|
|
|
58,460
|
|
|
|
49,657
|
|
|
|
114,955
|
|
|
|
97,097
|
|
General and administrative 1, 2
|
|
|
17,675
|
|
|
|
12,875
|
|
|
|
33,147
|
|
|
|
24,421
|
|
Total operating expenses
|
|
|
102,588
|
|
|
|
78,877
|
|
|
|
197,689
|
|
|
|
152,761
|
|
Loss from operations
|
|
|
(49,774
|
)
|
|
|
(38,287
|
)
|
|
|
(96,407
|
)
|
|
|
(76,069
|
)
|
Remeasurement of redeemable convertible preferred stock warrant
liability
|
|
|
—
|
|
|
|
461
|
|
|
|
—
|
|
|
|
194
|
|
Interest expense, net
|
|
|
(229
|
)
|
|
|
(382
|
)
|
|
|
(743
|
)
|
|
|
(787
|
)
|
Other expense, net
|
|
|
(31
|
)
|
|
|
(71
|
)
|
|
|
(108
|
)
|
|
|
(64
|
)
|
Loss before provision (benefit) for income taxes
|
|
|
(50,034
|
)
|
|
|
(38,279
|
)
|
|
|
(97,258
|
)
|
|
|
(76,726
|
)
|
Provision (benefit) for income taxes
|
|
|
141
|
|
|
|
(717
|
)
|
|
|
200
|
|
|
|
(653
|
)
|
Net loss
|
|
|
(50,175
|
)
|
|
|
(37,562
|
)
|
|
|
(97,458
|
)
|
|
|
(76,073
|
)
|
Accretion of redeemable convertible preferred stock
|
|
|
—
|
|
|
|
(1,791
|
)
|
|
|
—
|
|
|
|
(1,834
|
)
|
Net loss attributable to common stockholders
|
|
$
|
(50,175
|
)
|
|
$
|
(39,353
|
)
|
|
$
|
(97,458
|
)
|
|
$
|
(77,907
|
)
|
Net loss per share attributable to common stockholders, basic and
diluted
|
|
$
|
(0.42
|
)
|
|
$
|
(2.71
|
)
|
|
$
|
(0.81
|
)
|
|
$
|
(5.51
|
)
|
Weighted-average shares used to compute net loss per share
attributable to common stockholders, basic and diluted
|
|
|
120,399
|
|
|
|
14,533
|
|
|
|
119,897
|
|
|
|
14,140
|
|
|
|
|
|
|
1 Includes intangible assets amortization as follows:
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
July 31,
|
|
July 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
$
|
1,472
|
|
$
|
758
|
|
$
|
2,579
|
|
$
|
1,411
|
General and administrative
|
|
|
39
|
|
|
43
|
|
|
78
|
|
|
85
|
Total intangible assets amortization
|
|
$
|
1,511
|
|
$
|
801
|
|
$
|
2,657
|
|
$
|
1,496
|
|
|
|
|
|
|
|
|
|
2 Includes stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
July 31,
|
|
July 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
$
|
1,041
|
|
$
|
404
|
|
$
|
1,892
|
|
$
|
630
|
Research and development
|
|
|
6,303
|
|
|
3,005
|
|
|
11,566
|
|
|
5,013
|
Sales and marketing
|
|
|
4,742
|
|
|
3,119
|
|
|
9,025
|
|
|
5,184
|
General and administrative
|
|
|
2,642
|
|
|
1,551
|
|
|
4,960
|
|
|
3,004
|
Total stock-based compensation
|
|
$
|
14,728
|
|
$
|
8,079
|
|
$
|
27,443
|
|
$
|
13,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOX, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
July 31,
|
|
July 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(50,175
|
)
|
|
$
|
(37,562
|
)
|
|
$
|
(97,458
|
)
|
|
$
|
(76,073
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
9,865
|
|
|
|
6,433
|
|
|
|
19,031
|
|
|
|
12,329
|
|
Stock-based compensation expense
|
|
|
14,728
|
|
|
|
8,079
|
|
|
|
27,443
|
|
|
|
13,831
|
|
Amortization of deferred commissions
|
|
|
3,922
|
|
|
|
2,974
|
|
|
|
7,528
|
|
|
|
5,832
|
|
Remeasurement of redeemable convertible preferred stock warrant
liability
|
|
|
—
|
|
|
|
(461
|
)
|
|
|
—
|
|
|
|
(194
|
)
|
Release of deferred tax valuation allowance
|
|
|
—
|
|
|
|
(825
|
)
|
|
|
—
|
|
|
|
(825
|
)
|
Other
|
|
|
102
|
|
|
|
156
|
|
|
|
100
|
|
|
|
313
|
|
Changes in operating assets and liabilities, net of effects of
acquisitions:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(15,496
|
)
|
|
|
(4,028
|
)
|
|
|
127
|
|
|
|
6,558
|
|
Deferred commissions
|
|
|
(5,354
|
)
|
|
|
(3,160
|
)
|
|
|
(8,167
|
)
|
|
|
(5,949
|
)
|
Prepaid expenses, restricted cash and other assets
|
|
|
1,343
|
|
|
|
(2,245
|
)
|
|
|
(27,112
|
)
|
|
|
(4,528
|
)
|
Accounts payable
|
|
|
8,602
|
|
|
|
(596
|
)
|
|
|
8,868
|
|
|
|
718
|
|
Accrued expenses and other liabilities
|
|
|
2,560
|
|
|
|
(246
|
)
|
|
|
1,563
|
|
|
|
(6,534
|
)
|
Deferred rent
|
|
|
2,094
|
|
|
|
1,557
|
|
|
|
3,942
|
|
|
|
2,252
|
|
Deferred revenue
|
|
|
6,148
|
|
|
|
3,644
|
|
|
|
10,292
|
|
|
|
2,522
|
|
Net cash used in operating activities
|
|
|
(21,661
|
)
|
|
|
(26,280
|
)
|
|
|
(53,843
|
)
|
|
|
(49,748
|
)
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Purchases of marketable securities
|
|
|
(6,202
|
)
|
|
|
—
|
|
|
|
(112,521
|
)
|
|
|
—
|
|
Sales of marketable securities
|
|
|
709
|
|
|
|
—
|
|
|
|
3,849
|
|
|
|
—
|
|
Maturities of marketable securities
|
|
|
6,653
|
|
|
|
—
|
|
|
|
6,653
|
|
|
|
—
|
|
Purchases of property and equipment
|
|
|
(17,943
|
)
|
|
|
(16,293
|
)
|
|
|
(27,844
|
)
|
|
|
(22,254
|
)
|
Acquisition and purchases of intangible assets, net of cash acquired
|
|
|
(18
|
)
|
|
|
(102
|
)
|
|
|
(218
|
)
|
|
|
(102
|
)
|
Net cash used in investing activities
|
|
$
|
(16,801
|
)
|
|
$
|
(16,395
|
)
|
|
$
|
(130,081
|
)
|
|
$
|
(22,356
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOX, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
|
(In thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
July 31,
|
|
July 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Payment of initial public offering costs
|
|
$
|
(839
|
)
|
|
$
|
(1,013
|
)
|
|
$
|
(2,172
|
)
|
|
$
|
(2,748
|
)
|
Proceeds from borrowings, net of borrowing costs
|
|
|
—
|
|
|
|
12,000
|
|
|
|
—
|
|
|
|
12,000
|
|
Proceeds from issuance of redeemable convertible preferred stock,
net of issuance costs
|
|
|
—
|
|
|
|
149,619
|
|
|
|
—
|
|
|
|
149,619
|
|
Proceeds from exercise of stock options, net of repurchases of early
exercised stock options
|
|
|
1,618
|
|
|
|
528
|
|
|
|
2,414
|
|
|
|
2,105
|
|
Employee payroll taxes paid related to net share settlement of
restricted stock units
|
|
|
(1,972
|
)
|
|
|
—
|
|
|
|
(6,187
|
)
|
|
|
—
|
|
Payments of capital lease obligations
|
|
|
(192
|
)
|
|
|
—
|
|
|
|
(420
|
)
|
|
|
—
|
|
Net cash (used in) provided by financing activities
|
|
|
(1,385
|
)
|
|
|
161,134
|
|
|
|
(6,365
|
)
|
|
|
160,976
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(21
|
)
|
|
|
(7
|
)
|
|
|
(28
|
)
|
|
|
(5
|
)
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
(39,868
|
)
|
|
|
118,452
|
|
|
|
(190,317
|
)
|
|
|
88,867
|
|
Cash and cash equivalents, beginning of period
|
|
|
179,987
|
|
|
|
79,266
|
|
|
|
330,436
|
|
|
|
108,851
|
|
Cash and cash equivalents, end of period
|
|
$
|
140,119
|
|
|
$
|
197,718
|
|
|
$
|
140,119
|
|
|
$
|
197,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOX, INC.
|
|
RECONCILIATION OF GAAP TO NON-GAAP DATA
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
July 31,
|
|
July 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
GAAP operating loss
|
|
$
|
(49,774
|
)
|
|
$
|
(38,287
|
)
|
|
$
|
(96,407
|
)
|
|
$
|
(76,069
|
)
|
Stock-based compensation
|
|
|
14,728
|
|
|
|
8,079
|
|
|
|
27,443
|
|
|
|
13,831
|
|
Intangible assets amortization
|
|
|
1,511
|
|
|
|
801
|
|
|
|
2,657
|
|
|
|
1,496
|
|
Accrued interest related to a legal verdict
|
|
|
569
|
|
|
|
—
|
|
|
|
569
|
|
|
|
—
|
|
Amortization of capitalized legal verdict amount
|
|
|
223
|
|
|
|
—
|
|
|
|
409
|
|
|
|
—
|
|
Non-GAAP operating loss
|
|
$
|
(32,743
|
)
|
|
$
|
(29,407
|
)
|
|
$
|
(65,329
|
)
|
|
$
|
(60,742
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating margin
|
|
|
(68
|
) %
|
|
|
(74
|
)%
|
|
|
(69
|
)%
|
|
|
(79
|
)%
|
Stock-based compensation
|
|
|
20
|
|
|
|
15
|
|
|
|
20
|
|
|
|
14
|
|
Intangible assets amortization
|
|
|
2
|
|
|
|
2
|
|
|
|
2
|
|
|
|
2
|
|
Accrued interest related to a legal verdict
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Amortization of capitalized legal verdict amount
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Non-GAAP operating margin
|
|
|
(45
|
)%
|
|
|
(57
|
)%
|
|
|
(47
|
)%
|
|
|
(63
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
$
|
(50,175
|
)
|
|
$
|
(37,562
|
)
|
|
$
|
(97,458
|
)
|
|
$
|
(76,073
|
)
|
Stock-based compensation
|
|
|
14,728
|
|
|
|
8,079
|
|
|
|
27,443
|
|
|
|
13,831
|
|
Intangible assets amortization
|
|
|
1,511
|
|
|
|
801
|
|
|
|
2,657
|
|
|
|
1,496
|
|
Accrued interest related to a legal verdict
|
|
|
569
|
|
|
|
—
|
|
|
|
569
|
|
|
|
—
|
|
Amortization of capitalized legal verdict amount
|
|
|
223
|
|
|
|
—
|
|
|
|
409
|
|
|
|
—
|
|
Remeasurement of redeemable convertible preferred stock warrant
liability
|
|
|
—
|
|
|
|
(461
|
)
|
|
|
—
|
|
|
|
(194
|
)
|
Non-GAAP net loss
|
|
$
|
(33,144
|
)
|
|
$
|
(29,143
|
)
|
|
$
|
(66,380
|
)
|
|
$
|
(60,940
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss attributable to common stockholders
|
|
$
|
(50,175
|
)
|
|
$
|
(39,353
|
)
|
|
$
|
(97,458
|
)
|
|
$
|
(77,907
|
)
|
Stock-based compensation
|
|
|
14,728
|
|
|
|
8,079
|
|
|
|
27,443
|
|
|
|
13,831
|
|
Intangible assets amortization
|
|
|
1,511
|
|
|
|
801
|
|
|
|
2,657
|
|
|
|
1,496
|
|
Accrued interest related to a legal verdict
|
|
|
569
|
|
|
|
—
|
|
|
|
569
|
|
|
|
—
|
|
Amortization of capitalized legal verdict amount
|
|
|
223
|
|
|
|
—
|
|
|
|
409
|
|
|
|
—
|
|
Remeasurement of redeemable convertible preferred stock warrant
liability
|
|
|
—
|
|
|
|
(461
|
)
|
|
|
—
|
|
|
|
(194
|
)
|
Accretion of redeemable convertible preferred stock
|
|
|
—
|
|
|
|
1,791
|
|
|
|
—
|
|
|
|
1,834
|
|
Non-GAAP net loss attributable to common stockholders
|
|
$
|
(33,144
|
)
|
|
$
|
(29,143
|
)
|
|
$
|
(66,380
|
)
|
|
$
|
(60,940
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOX, INC.
|
|
RECONCILIATION OF GAAP TO NON-GAAP DATA (CONTINUED)
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
July 31,
|
|
July 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share attributable to common stockholders, basic
and diluted
|
|
$
|
(0.42
|
)
|
|
$
|
(2.71
|
)
|
|
$
|
(0.81
|
)
|
|
$
|
(5.51
|
)
|
Stock-based compensation
|
|
|
0.13
|
|
|
|
0.55
|
|
|
|
0.24
|
|
|
|
0.97
|
|
Intangible assets amortization
|
|
|
0.01
|
|
|
|
0.06
|
|
|
|
0.02
|
|
|
|
0.11
|
|
Accrued interest related to a legal verdict
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Amortization of capitalized legal verdict amount
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Remeasurement of redeemable convertible preferred stock warrant
liability
|
|
|
—
|
|
|
|
(0.03
|
)
|
|
|
—
|
|
|
|
(0.01
|
)
|
Accretion of redeemable convertible preferred stock
|
|
|
—
|
|
|
|
0.12
|
|
|
|
—
|
|
|
|
0.13
|
|
Non-GAAP net loss per share attributable to common stockholders,
basic and diluted
|
|
$
|
(0.28
|
)
|
|
$
|
(2.01
|
)
|
|
$
|
(0.55
|
)
|
|
$
|
(4.31
|
)
|
Weighted-average shares used to compute net loss per share
attributable to common stockholders, basic and diluted
|
|
|
120,399
|
|
|
|
14,533
|
|
|
|
119,897
|
|
|
|
14,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOX, INC.
|
|
RECONCILIATION OF GAAP REVENUE TO BILLINGS
|
(In thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
July 31,
|
|
July 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
GAAP revenue
|
|
$
|
73,450
|
|
|
$
|
51,423
|
|
|
$
|
139,071
|
|
|
$
|
96,753
|
|
Deferred revenue, end of period
|
|
|
130,349
|
|
|
|
92,594
|
|
|
|
130,349
|
|
|
|
92,594
|
|
Less: deferred revenue, beginning of period
|
|
|
(124,201
|
)
|
|
|
(88,950
|
)
|
|
|
(120,057
|
)
|
|
|
(90,072
|
)
|
Billings
|
|
$
|
79,598
|
|
|
$
|
55,067
|
|
|
$
|
149,363
|
|
|
$
|
99,275
|
|