-
Revenue of $129.3 Million, Up 26 Percent Year-Over-Year
-
Billings of $141.5 Million, Up 26 Percent Year-Over-Year
-
Cash Flow from Operations of $14.1 million, up $20.9 Million
Year-Over-Year
-
Free Cash Flow of $6.3 million, Up $17.2 Million Year-Over-Year
REDWOOD CITY, Calif.--(BUSINESS WIRE)--
Box, Inc. (NYSE:BOX), a leader in cloud content management, today
announced financial results for the third quarter of fiscal 2018, which
ended October 31, 2017.
“In Q3, we continued to extend our lead in cloud content management by
innovating on our core products and by unveiling new capabilities like
Box Skills and Box Graph that will help enterprises bring AI and machine
learning to their content in Box,” said Aaron Levie, co-founder and CEO
of Box. “By making Box the most intelligent and secure cloud content
management platform, we are becoming more and more critical to powering
our customers as they modernize their businesses and drive digital
transformation.”
“We are driving operational efficiencies across our business as
evidenced by a year-over-year improvement of $21 million in our cash
flow from operations to $14 million,” said Dylan Smith, co-founder and
CFO of Box. “With our ability to balance innovation, growth and
profitability, we are well-positioned to achieve our $1 billion revenue
target in the coming years.”
Fiscal Third Quarter 2018 Financial Highlights
-
Revenue for the third quarter of fiscal 2018 was a record $129.3
million, an increase of 26% from the third quarter of fiscal 2017.
-
Deferred revenue as of October 31, 2017, was $253.0 million, an
increase of 31% from October 31, 2016.
-
Billings for the third quarter of fiscal 2018 were $141.5 million, an
increase of 26% from the third quarter of fiscal 2017.
-
GAAP operating loss in the third quarter of fiscal 2018 was $42.6
million, or 33% of revenue. This compares to GAAP operating loss of
$37.8 million, or 37% of revenue, in the third quarter of fiscal 2017.
-
Non-GAAP operating loss in the third quarter of fiscal 2018 was $17.0
million, or 13% of revenue. This compares to a non-GAAP operating loss
of $17.3 million, or 17% of revenue, in the third quarter of fiscal
2017.
-
GAAP net loss per share, basic and diluted, in the third quarter of
fiscal 2018 was $0.32 on 135 million shares outstanding, compared to a
GAAP net loss per share of $0.30 in the third quarter of fiscal 2017
on 128 million shares outstanding.
-
Non-GAAP net loss per share, basic and diluted, in the third quarter
of fiscal 2018 was $0.13, compared to non-GAAP net loss per share of
$0.14 in the third quarter of fiscal 2017.
-
Net cash provided by operating activities in the third quarter of
fiscal 2018 totaled $14.1 million. This compares to net cash used in
operating activities of $6.8 million in the third quarter of fiscal
2017.
-
Free cash flow in the third quarter of fiscal 2018 was positive $6.3
million. This compares to negative $10.9 million in the third quarter
of fiscal 2017.
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 measures and certain key metrics to their
nearest comparable GAAP measures at the end of this press release.
Business Highlights since Last Earnings Release
-
Grew paying customer base to 80,000 businesses, including new or
expanded deployments with leading organizations such as Conair, Foster
Farms, HGST, LionsGate, Nuclear Regulatory Commission and U.S. Food
and Drug Administration.
-
Hosted the most successful BoxWorks
to date, which attracted a record number of attendees representing
Fortune 1000 companies and featured partners such as Google, IBM and
Microsoft.
-
Announced that Box
using Azure is generally available. Box using Azure is the first
product milestone in the expanded partnership between Box and
Microsoft, which also enables both companies to co-sell Box offerings
that leverage Azure.
-
Unveiled Box
Skills, a framework for applying state-of-the-art machine learning
tools such as computer vision, video indexing and sentiment analysis
to content stored in Box. At BoxWorks 2017, Box showcased skills
powered by Google Cloud, IBM Watson and Microsoft Cognitive Services.
-
Announced Box
Skills Kit, a set of developer resources for building custom
skills for Box.
-
Introduced Box
Graph, an intelligent network of content, relationships and
activity that will power new experiences and services for Box users
and enterprises. The first new experience, Feed, is a personalized
activity feed that leverages machine learning to recommend content for
each user.
-
Announced the general availability of Box
Relay, a new workflow product co-developed with IBM that allows
users to easily build, manage and track their own workflows.
-
Released Box's
integration with Apple's new Files app as part of iOS 11.
-
Announced that Box was positioned as a visionary in the Content
Services Platform Magic Quadrant report by Gartner.
Outlook
-
Q4 FY18 Guidance: Revenue is expected to be in the range of
$136 million to $137 million. GAAP and non-GAAP basic and diluted
earnings per share are expected to be in the range of ($0.27) to
($0.26) and ($0.08) to ($0.07), respectively. Weighted average basic
and diluted shares outstanding are expected to be approximately 137
million.
-
Full Year FY18 Guidance: Revenue is expected to be in the range
of $505 million to $506 million. GAAP and non-GAAP basic and diluted
earnings per share are expected to be in the range of ($1.19) to
($1.18) and ($0.45) to ($0.44), respectively. Weighted average basic
and diluted shares outstanding are expected to be approximately 134
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 certain legal settlement and
related costs. Box has provided a reconciliation of GAAP to non-GAAP
earnings 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 access details for the live conference call are:
+
1-866-393-4306 (U.S. and Canada), conference ID: 2475079
+
1-734-385-2616 (international), conference ID: 2475079
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:
+ 1-855-859-2056 (U.S. and Canada), conference
ID: 2475079
+ 1-404-537-3406 (international), conference ID: 2475079
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 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 measures and
certain key metrics 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 the size of its market opportunity, the demand
for its products, its ability to scale its business and drive operating
efficiencies, its ability to achieve its revenue target of $1 billion in
the coming years, expectations regarding its ability to achieve positive
free cash flow for its fourth quarter and for its full fiscal year
ending January 31, 2018, profitability, the timing of recent and planned
product introductions and enhancements, the short- and long-term
success, market adoption and benefits of such product introductions and
enhancements, and the success of strategic partnerships, as well as
expectations regarding its revenue, GAAP and non-GAAP earnings per
share, the related components of GAAP and non-GAAP earnings per share,
and weighted average basic and diluted outstanding share count
expectations for Box’s fiscal fourth quarter and full fiscal year 2018
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 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) 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, expand their use of Box’s services, or adopt new products
offered by Box; (8) Box’s ability to provide timely and 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 Quarterly Report on Form
10-Q filed for the fiscal quarter ended July 31, 2017. 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 loss, non-GAAP operating margin, non-GAAP
net loss, non-GAAP net loss per share, billings 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 measures and certain key metrics to their nearest comparable
GAAP 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 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 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 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, one that is not typically affected by operations during
any particular period. Box further excludes expenses related to certain
litigation because they are considered by management to be special items
outside Box’s core operating results.
Non-GAAP net loss and non-GAAP net loss per share. Box defines
non-GAAP net loss as net loss excluding expenses related to SBC,
intangible assets amortization, and as applicable, other special items.
Box defines non-GAAP net loss per share as non-GAAP net loss divided by
the weighted average outstanding shares. Box excludes expenses related
to certain litigation because they are considered by management to be
special items outside Box’s core operating results.
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 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 and, after adjusting for any shifts in relative
payment frequencies, a leading indicator of future revenue. 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 will help 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 given that it is calculated using exclusively
revenue and deferred revenue, both of which are financial measures
calculated in accordance with GAAP.
Free cash flow. Box defines free cash flow as cash provided by
(used in) operating activities less purchases of property and equipment,
principal payments of capital lease obligations, 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. Historically,
these items have included restricted cash used to guarantee a
significant letter of credit for Box's Redwood City headquarters. 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 measures and certain key metrics to their nearest comparable
GAAP measures.
About Box
Box (NYSE:BOX) is the cloud content management company that
empowers enterprises to revolutionize how they work by securely
connecting their people, information and applications. Founded in 2005,
Box powers 80,000 businesses globally, including AstraZeneca, General
Electric, P&G, and The GAP. Box is headquartered in Redwood City, CA,
with offices across the United States, Europe and Asia. To learn more
about Box, visit http://www.box.com.
|
|
|
|
|
|
|
BOX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
|
|
|
|
|
|
|
|
|
|
October 31,
|
|
January 31,
|
|
|
|
2017
|
|
2017
|
|
|
|
(unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
172,857
|
|
|
$
|
177,391
|
|
|
Accounts receivable, net
|
|
|
95,868
|
|
|
|
120,113
|
|
|
Prepaid expenses and other current assets
|
|
|
13,915
|
|
|
|
10,826
|
|
|
Deferred commissions
|
|
|
13,331
|
|
|
|
13,771
|
|
|
Total current assets
|
|
|
295,971
|
|
|
|
322,101
|
|
|
Property and equipment, net
|
|
|
118,278
|
|
|
|
117,176
|
|
|
Intangible assets, net
|
|
|
63
|
|
|
|
543
|
|
|
Goodwill
|
|
|
16,293
|
|
|
|
16,293
|
|
|
Restricted cash
|
|
|
26,543
|
|
|
|
26,781
|
|
|
Other long-term assets
|
|
|
9,621
|
|
|
|
10,780
|
|
|
Total assets
|
|
$
|
466,769
|
|
|
$
|
493,674
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
11,334
|
|
|
$
|
6,658
|
|
|
Accrued compensation and benefits
|
|
|
22,098
|
|
|
|
30,415
|
|
|
Accrued expenses and other current liabilities
|
|
|
18,074
|
|
|
|
17,713
|
|
|
Capital lease obligations
|
|
|
18,071
|
|
|
|
13,748
|
|
|
Deferred revenue
|
|
|
225,194
|
|
|
|
228,656
|
|
|
Deferred rent
|
|
|
2,147
|
|
|
|
751
|
|
|
Total current liabilities
|
|
|
296,918
|
|
|
|
297,941
|
|
|
Debt, non-current
|
|
|
40,000
|
|
|
|
40,000
|
|
|
Capital lease obligations, non-current
|
|
|
26,667
|
|
|
|
21,697
|
|
|
Deferred revenue, non-current
|
|
|
27,812
|
|
|
|
13,328
|
|
|
Deferred rent, non-current
|
|
|
45,943
|
|
|
|
44,207
|
|
|
Other long-term liabilities
|
|
|
3,129
|
|
|
|
1,769
|
|
|
Total liabilities
|
|
|
440,469
|
|
|
|
418,942
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
Common stock (1)
|
|
|
13
|
|
|
|
13
|
|
|
Additional paid-in capital
|
|
|
1,033,917
|
|
|
|
960,144
|
|
|
Treasury stock
|
|
|
(1,177
|
)
|
|
|
(1,177
|
)
|
|
Accumulated other comprehensive loss
|
|
|
(30
|
)
|
|
|
(120
|
)
|
|
Accumulated deficit
|
|
|
(1,006,423
|
)
|
|
|
(884,128
|
)
|
|
Total stockholders’ equity
|
|
|
26,300
|
|
|
|
74,732
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
466,769
|
|
|
$
|
493,674
|
|
|
|
|
|
|
|
|
|
|
|
(1) As of October 31, 2017, the number of shares of the registrant’s
Class A common stock outstanding was 118,867 and the number of shares of
the registrant’s Class B common stock outstanding was 17,223.
|
|
|
|
|
|
|
BOX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
October 31,
|
|
October 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Revenue
|
|
$
|
129,304
|
|
|
$
|
102,811
|
|
|
$
|
369,467
|
|
|
$
|
288,679
|
|
|
Cost of revenue(1)(2)
|
|
|
34,471
|
|
|
|
27,115
|
|
|
|
99,972
|
|
|
|
82,576
|
|
|
Gross profit
|
|
|
94,833
|
|
|
|
75,696
|
|
|
|
269,495
|
|
|
|
206,103
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development(2)
|
|
|
34,812
|
|
|
|
29,652
|
|
|
|
102,388
|
|
|
|
84,824
|
|
|
Sales and marketing(2)
|
|
|
81,670
|
|
|
|
66,796
|
|
|
|
225,604
|
|
|
|
186,454
|
|
|
General and administrative(1)(2)
|
|
|
20,910
|
|
|
|
16,999
|
|
|
|
63,037
|
|
|
|
49,087
|
|
|
Total operating expenses
|
|
|
137,392
|
|
|
|
113,447
|
|
|
|
391,029
|
|
|
|
320,365
|
|
|
Loss from operations
|
|
|
(42,559
|
)
|
|
|
(37,751
|
)
|
|
|
(121,534
|
)
|
|
|
(114,262
|
)
|
|
Interest expense, net
|
|
|
(287
|
)
|
|
|
(222
|
)
|
|
|
(802
|
)
|
|
|
(587
|
)
|
|
Other income (loss), net
|
|
|
277
|
|
|
|
(22
|
)
|
|
|
560
|
|
|
|
609
|
|
|
Loss before provision for income taxes
|
|
|
(42,569
|
)
|
|
|
(37,995
|
)
|
|
|
(121,776
|
)
|
|
|
(114,240
|
)
|
|
Provision for income taxes
|
|
|
355
|
|
|
|
238
|
|
|
|
519
|
|
|
|
670
|
|
|
Net loss
|
|
$
|
(42,924
|
)
|
|
$
|
(38,233
|
)
|
|
$
|
(122,295
|
)
|
|
$
|
(114,910
|
)
|
|
Net loss per common share, basic and diluted
|
|
$
|
(0.32
|
)
|
|
$
|
(0.30
|
)
|
|
$
|
(0.92
|
)
|
|
$
|
(0.91
|
)
|
|
Weighted-average shares used to compute net loss per
share, basic and diluted
|
|
|
134,636
|
|
|
|
128,275
|
|
|
|
133,044
|
|
|
|
126,712
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes intangible assets amortization as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
October 31,
|
|
October 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
(in thousands)
|
|
(in thousands)
|
|
Cost of revenue
|
|
$
|
—
|
|
|
$
|
506
|
|
|
$
|
365
|
|
|
$
|
2,804
|
|
|
General and administrative
|
|
|
39
|
|
|
|
39
|
|
|
|
116
|
|
|
|
116
|
|
|
Total intangible assets amortization
|
|
$
|
39
|
|
|
$
|
545
|
|
|
$
|
481
|
|
|
$
|
2,920
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
October 31,
|
|
October 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
(in thousands)
|
|
(in thousands)
|
|
Cost of revenue
|
|
$
|
2,814
|
|
|
$
|
1,986
|
|
|
$
|
7,945
|
|
|
$
|
5,328
|
|
|
Research and development
|
|
|
9,705
|
|
|
|
7,730
|
|
|
|
28,419
|
|
|
|
21,602
|
|
|
Sales and marketing
|
|
|
8,208
|
|
|
|
6,744
|
|
|
|
23,882
|
|
|
|
18,390
|
|
|
General and administrative
|
|
|
4,796
|
|
|
|
3,457
|
|
|
|
12,290
|
|
|
|
9,750
|
|
|
Total stock-based compensation
|
|
$
|
25,523
|
|
|
$
|
19,917
|
|
|
$
|
72,536
|
|
|
$
|
55,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
October 31,
|
|
October 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(42,924
|
)
|
|
$
|
(38,233
|
)
|
|
$
|
(122,295
|
)
|
|
$
|
(114,910
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
9,913
|
|
|
|
8,710
|
|
|
|
29,250
|
|
|
|
31,515
|
|
|
Stock-based compensation expense
|
|
|
25,523
|
|
|
|
19,917
|
|
|
|
72,536
|
|
|
|
55,070
|
|
|
Amortization of deferred commissions
|
|
|
5,393
|
|
|
|
4,251
|
|
|
|
15,751
|
|
|
|
13,627
|
|
|
Other
|
|
|
(124
|
)
|
|
|
13
|
|
|
|
(83
|
)
|
|
|
96
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
12,023
|
|
|
|
(10,825
|
)
|
|
|
24,245
|
|
|
|
13,547
|
|
|
Deferred commissions
|
|
|
(4,616
|
)
|
|
|
(3,667
|
)
|
|
|
(13,235
|
)
|
|
|
(10,073
|
)
|
|
Prepaid expenses, restricted cash and other assets
|
|
|
2,746
|
|
|
|
1,670
|
|
|
|
(2,959
|
)
|
|
|
4,107
|
|
|
Accounts payable
|
|
|
(2,592
|
)
|
|
|
2,353
|
|
|
|
4,469
|
|
|
|
2,069
|
|
|
Accrued expenses and other liabilities
|
|
|
(4,828
|
)
|
|
|
(1,036
|
)
|
|
|
(8,721
|
)
|
|
|
(20,250
|
)
|
|
Deferred rent
|
|
|
1,413
|
|
|
|
424
|
|
|
|
3,132
|
|
|
|
3,078
|
|
|
Deferred revenue
|
|
|
12,167
|
|
|
|
9,594
|
|
|
|
11,022
|
|
|
|
6,185
|
|
|
Net cash provided by (used in) operating activities
|
|
|
14,094
|
|
|
|
(6,829
|
)
|
|
|
13,112
|
|
|
|
(15,939
|
)
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Sales of marketable securities
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
240
|
|
|
Maturities of marketable securities
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,057
|
|
|
Purchases of property and equipment
|
|
|
(3,003
|
)
|
|
|
(1,892
|
)
|
|
|
(4,800
|
)
|
|
|
(13,639
|
)
|
|
Proceeds from sale of property and equipment
|
|
|
2
|
|
|
|
8
|
|
|
|
31
|
|
|
|
84
|
|
|
Net cash used in investing activities
|
|
|
(3,001
|
)
|
|
|
(1,884
|
)
|
|
|
(4,769
|
)
|
|
|
(6,258
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Payment of borrowing costs
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(93
|
)
|
|
Proceeds from exercise of stock options, net of repurchases of
early exercised stock options
|
|
|
4,002
|
|
|
|
3,388
|
|
|
|
9,415
|
|
|
|
7,603
|
|
|
Proceeds from issuances of common stock under employee stock
purchase plan
|
|
|
8,640
|
|
|
|
6,710
|
|
|
|
17,521
|
|
|
|
15,726
|
|
|
Employee payroll taxes paid related to net share settlement of
restricted stock units
|
|
|
(11,284
|
)
|
|
|
(4,726
|
)
|
|
|
(26,219
|
)
|
|
|
(13,594
|
)
|
|
Acquisition related contingent consideration
|
|
|
—
|
|
|
|
—
|
|
|
|
(991
|
)
|
|
|
—
|
|
|
Payments of capital lease obligations
|
|
|
(4,781
|
)
|
|
|
(2,178
|
)
|
|
|
(12,693
|
)
|
|
|
(5,439
|
)
|
|
Net cash (used in) provided by financing activities
|
|
|
(3,423
|
)
|
|
|
3,194
|
|
|
|
(12,967
|
)
|
|
|
4,203
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(88
|
)
|
|
|
(12
|
)
|
|
|
90
|
|
|
|
53
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
7,582
|
|
|
|
(5,531
|
)
|
|
|
(4,534
|
)
|
|
|
(17,941
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
|
165,275
|
|
|
|
173,331
|
|
|
|
177,391
|
|
|
|
185,741
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
172,857
|
|
|
$
|
167,800
|
|
|
$
|
172,857
|
|
|
$
|
167,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOX, INC.
RECONCILIATION OF GAAP TO NON-GAAP DATA
(In thousands, except per share data)
(unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|
|
October 31,
|
|
|
|
October 31,
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
GAAP operating loss
|
|
$
|
(42,559
|
)
|
|
|
|
$
|
(37,751
|
)
|
|
|
|
$
|
(121,534
|
)
|
|
|
|
$
|
(114,262
|
)
|
|
|
|
Stock-based compensation
|
|
|
25,523
|
|
|
|
|
|
19,917
|
|
|
|
|
|
72,536
|
|
|
|
|
|
55,070
|
|
|
|
|
Intangible assets amortization
|
|
|
39
|
|
|
|
|
|
545
|
|
|
|
|
|
481
|
|
|
|
|
|
2,920
|
|
|
|
|
Expenses related to a legal verdict(1)
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
(1,664
|
)
|
|
|
|
Non-GAAP operating loss
|
|
$
|
(16,997
|
)
|
|
|
|
$
|
(17,289
|
)
|
|
|
|
$
|
(48,517
|
)
|
|
|
|
$
|
(57,936
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating margin
|
|
|
(33
|
)
|
|
%
|
|
|
(37
|
)
|
|
%
|
|
|
(33
|
)
|
|
%
|
|
|
(40
|
)
|
|
%
|
|
Stock-based compensation
|
|
|
20
|
|
|
|
|
|
19
|
|
|
|
|
|
20
|
|
|
|
|
|
19
|
|
|
|
|
Intangible assets amortization
|
|
|
—
|
|
|
|
|
|
1
|
|
|
|
|
|
—
|
|
|
|
|
|
1
|
|
|
|
|
Expenses related to a legal verdict(1)
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
(1
|
)
|
|
|
|
Non-GAAP operating margin
|
|
|
(13
|
)
|
|
%
|
|
|
(17
|
)
|
|
%
|
|
|
(13
|
)
|
|
%
|
|
|
(21
|
)
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
$
|
(42,924
|
)
|
|
|
|
$
|
(38,233
|
)
|
|
|
|
$
|
(122,295
|
)
|
|
|
|
$
|
(114,910
|
)
|
|
|
|
Stock-based compensation
|
|
|
25,523
|
|
|
|
|
|
19,917
|
|
|
|
|
|
72,536
|
|
|
|
|
|
55,070
|
|
|
|
|
Intangible assets amortization
|
|
|
39
|
|
|
|
|
|
545
|
|
|
|
|
|
481
|
|
|
|
|
|
2,920
|
|
|
|
|
Expenses related to a legal verdict(1)
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
(1,664
|
)
|
|
|
|
Non-GAAP net loss
|
|
$
|
(17,362
|
)
|
|
|
|
$
|
(17,771
|
)
|
|
|
|
$
|
(49,278
|
)
|
|
|
|
$
|
(58,584
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share, basic and diluted
|
|
$
|
(0.32
|
)
|
|
|
|
$
|
(0.30
|
)
|
|
|
|
$
|
(0.92
|
)
|
|
|
|
$
|
(0.91
|
)
|
|
|
|
Stock-based compensation
|
|
|
0.19
|
|
|
|
|
|
0.16
|
|
|
|
|
|
0.55
|
|
|
|
|
|
0.43
|
|
|
|
|
Intangible assets amortization
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
0.02
|
|
|
|
|
Expenses related to a legal verdict(1)
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
Non-GAAP net loss per share, basic and diluted
|
|
$
|
(0.13
|
)
|
|
|
|
$
|
(0.14
|
)
|
|
|
|
$
|
(0.37
|
)
|
|
|
|
$
|
(0.46
|
)
|
|
|
|
Weighted-average shares outstanding, basic and diluted
|
|
|
134,636
|
|
|
|
|
|
128,275
|
|
|
|
|
|
133,044
|
|
|
|
|
|
126,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net cash provided by (used in) operating activities
|
|
$
|
14,094
|
|
|
|
|
$
|
(6,829
|
)
|
|
|
|
$
|
13,112
|
|
|
|
|
$
|
(15,939
|
)
|
|
|
|
Purchases of property and equipment
|
|
|
(3,003
|
)
|
|
|
|
|
(1,892
|
)
|
|
|
|
|
(4,800
|
)
|
|
|
|
|
(13,639
|
)
|
|
|
|
Payments of capital lease obligations
|
|
|
(4,781
|
)
|
|
|
|
|
(2,178
|
)
|
|
|
|
|
(12,693
|
)
|
|
|
|
|
(5,439
|
)
|
|
|
|
Free cash flow
|
|
$
|
6,310
|
|
|
|
|
$
|
(10,899
|
)
|
|
|
|
$
|
(4,381
|
)
|
|
|
|
$
|
(35,017
|
)
|
|
|
|
Net cash used in investing activities
|
|
$
|
(3,001
|
)
|
|
|
|
$
|
(1,884
|
)
|
|
|
|
$
|
(4,769
|
)
|
|
|
|
$
|
(6,258
|
)
|
|
|
|
Net cash (used in) provided by financing activities
|
|
$
|
(3,423
|
)
|
|
|
|
$
|
3,194
|
|
|
|
|
$
|
(12,967
|
)
|
|
|
|
$
|
4,203
|
|
|
|
(1) Included in general and administrative expenses in the condensed
consolidated statements of operations.
|
|
|
|
|
|
|
BOX, INC.
RECONCILIATION OF GAAP REVENUE TO BILLINGS
(In thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
October 31,
|
|
October 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
GAAP revenue
|
|
$
|
129,304
|
|
|
$
|
102,811
|
|
|
$
|
369,467
|
|
|
$
|
288,679
|
|
|
Deferred revenue, end of period
|
|
|
253,006
|
|
|
|
192,598
|
|
|
|
253,006
|
|
|
|
192,598
|
|
|
Less: deferred revenue, beginning of period
|
|
|
(240,839
|
)
|
|
|
(183,004
|
)
|
|
|
(241,984
|
)
|
|
|
(186,413
|
)
|
|
Billings
|
|
$
|
141,471
|
|
|
$
|
112,405
|
|
|
$
|
380,489
|
|
|
$
|
294,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS PER SHARE
GUIDANCE
(In thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended January 31, 2018
|
|
For the Year Ended
January 31, 2018
|
|
GAAP net loss per share range, basic and diluted
|
|
$(0.27-0.26)
|
|
$(1.19-1.18)
|
|
Stock-based compensation
|
|
0.19
|
|
0.74
|
|
Intangible assets amortization
|
|
-
|
|
-
|
|
Non-GAAP net loss per share range, basic and diluted
|
|
$(0.08-0.07)
|
|
$(0.45-0.44)
|
|
Weighted average shares outstanding, basic and diluted
|
|
136,667
|
|
133,970
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20171129006092/en/
Source: Box, Inc.