-
Revenue of $155.9 Million, Up 21 Percent Year-Over-Year
-
GAAP and Non-GAAP Operating Margin Up 8 Percentage Points
Year-Over-Year
-
More than 40 Percent Growth in Deals Greater than $100K and Strong
Add-On Product Attach Rates Demonstrate Progress in Solution Selling
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 2019, which
ended October 31, 2018.
“Our solution selling strategy continues to gain momentum with strong
attach rates for add-on products and large deal growth in the third
quarter. With more than 90,000 customers, including BBVA Compass,
National Bank of Canada, and Shiseido Company, Box continues to expand
its role as a strategic technology partner to power digital
transformation for enterprises,” said Aaron Levie, co-founder and CEO of
Box. “Businesses need a single, open platform for cloud content
management with enterprise-grade security and powerful workflow
capabilities, and Box is the only solution with this uncompromising
focus.”
“In the third quarter, we delivered solid revenue growth and continued
to drive operational efficiencies, and we're on track to deliver our
first quarter of non-GAAP profitability in Q4,” said Dylan Smith,
co-founder and CFO of Box. “With more than 40% growth in deals worth
more than $100K and our attach rate for add-on products increasing to
over 80% of these deals, we are capturing our market opportunity while
driving continued leverage for long-term growth.”
Adoption of the New Revenue Recognition Standard - ASC Topic 606
Box adopted the new revenue recognition accounting standard Accounting
Standards Codification Topic 606 (“ASC 606”) on a modified retrospective
basis, effective February 1, 2018. Financial results for reporting
periods in Box’s fiscal year ending January 31, 2019 are presented in
compliance with the new revenue recognition standard. Historical
financial results for reporting periods prior to fiscal 2019 are
presented in conformity with amounts previously disclosed under the
prior revenue recognition standard Accounting Standards Codification
Topic 605 (“ASC 605”). This press release includes additional
information regarding Box’s financial results for the quarter
ended October 31, 2018 under ASC 605 for comparison to the prior year.
Fiscal Third Quarter Financial Highlights
-
Revenue for the third quarter of fiscal 2019 was a record $155.9
million, an increase of 21% (ASC 606 in fiscal 2019 compared to ASC
605 in fiscal 2018) and 23% (ASC 605 in fiscal 2019 compared to ASC
605 in fiscal 2018) from the third quarter of fiscal 2018.
-
Deferred revenue as of October 31, 2018 was $301.2 million, an
increase of 19% (ASC 606 to ASC 605) and 20% (ASC 605 to ASC 605) from
October 31, 2017.
-
Billings for the third quarter of fiscal 2019 were $155.6 million, an
increase of 10% (ASC 606 to ASC 605 and ASC 605 to ASC 605) from the
third quarter of fiscal 2018.
-
GAAP operating loss in the third quarter of fiscal 2019 was $39.5
million, or 25% of revenue (ASC 606), and $42.3 million, or 27% of
revenue (ASC 605). This compares to GAAP operating loss of $42.6
million, or 33% of revenue, in the third quarter of fiscal 2018.
-
Non-GAAP operating loss in the third quarter of fiscal 2019 was $7.7
million, or 5% of revenue (ASC 606), and $10.5 million, or 7% of
revenue (ASC 605). This compares to non-GAAP operating loss of $17.0
million, or 13% of revenue, in the third quarter of fiscal 2018.
-
GAAP net loss per share, basic and diluted, in the third quarter of
fiscal 2019 was $0.28 (ASC 606) and $0.30 (ASC 605) on 142.4 million
shares outstanding. This compares to GAAP net loss per share of
$0.32 in the third quarter of fiscal 2018 on 134.6 million shares
outstanding.
-
Non-GAAP net loss per share, basic and diluted, in the third quarter
of fiscal 2019 was $0.06 (ASC 606) and $0.08 (ASC 605). This compares
to non-GAAP net loss per share of $0.13 in the third quarter of fiscal
2018.
-
Net cash provided by operating activities in the third quarter of
fiscal 2019 totaled $6.8 million. This compares to net cash provided
by operating activities of $14.1 million in the third quarter of
fiscal 2018.
-
Free cash flow in the third quarter of fiscal 2019 was negative $4.1
million, compared to positive $6.3 million in the third quarter of
fiscal 2018. This result was driven by the timing of cash outflows
paid in the third quarter of fiscal 2019 that were originally
anticipated to be paid in the fourth quarter of fiscal 2019. Box
continues to expect to achieve positive free cash flow for the fourth
quarter and full fiscal year 2019.
For more information on the non-GAAP financial measures and key metrics
discussed in this press release, please see the section titled, “About
Non-GAAP Financial Measures and Other Key Metrics,” and the
reconciliations of non-GAAP financial measures and certain key metrics
to their nearest comparable GAAP financial measures at the end of this
press release.
Business Highlights since Last Earnings Release
• Grew paying customer base to more than 90,000 organizations, including
new or expanded deployments with 23andMe, BBVA Compass, BPDA The City of
Boston, Mizuho Bank, National Bank of Canada, Radian Group, Shiseido
Company, and Sunbelt Rentals.
• Hosted eighth annual BoxWorks,
which attracted a record number of Fortune 1,000 attendees and featured
partners such as Google, IBM, Apple, and Microsoft.
• Unveiled a
new activity stream and recommended applications, which surfaces
relevant activity from other applications when previewing a file in Box.
• Announced updates to Box
Tasks and Automations, which will enable customers to create simple
triggers for recurring actions around their content.
• Announced support for custom-trained
AI models for Box Skills, a framework for applying state-of-the-art
AI technologies to content in Box.
• Launched the general availability of the Box
for Gmail add-on and the beta of the Box
for G Suite integration.
• Launched an enhanced integration
with Oracle NetSuite, making it even easier for organizations to
work faster, more collaboratively, and securely with their content
across both systems.
• Welcomed
Kimberly Hammonds, former COO of Deutsche Bank AG and CIO for the
Boeing Company, to Box's Board of Directors.
Outlook
-
Q4 FY19 Guidance: Revenue is expected to be in the range of
$163.5 million to $164.5 million. GAAP basic and diluted loss per
share are expected to be in the range of $0.21 to $0.20 based on
approximately 144 million weighted average shares outstanding.
Non-GAAP diluted earnings per share is expected to be in the range of
$0.02 to $0.03 based on approximately 150 million weighted average
diluted shares outstanding.
-
Full Year FY19 Guidance: Revenue is expected to be in the range
of $608.2 million to $609.2 million. GAAP and non-GAAP basic and
diluted loss per share are expected to be in the range of $1.02 to
$1.01 and $0.16 to $0.15, respectively. Weighted average basic and
diluted shares outstanding are expected to be approximately
141 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, 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:
+
1-833-231-7240 (U.S. and Canada), conference ID: 3697769
+
1-647-689-4084 (international), conference ID: 3697769
A telephonic replay of the call will be available approximately two
hours after the call and will run for one week. The replay can be
accessed by dialing:
+ 1-800-585-8367 (U.S. and Canada), conference
ID: 3697769
+ 1-416-621-4642 (international), conference ID: 3697769
Box has used, and intends to continue to use, its Investor Relations
website (www.box.com/investors),
as well as certain Twitter accounts (@box, @levie and @boxincir), as a
means of disclosing material non-public information and for complying
with its disclosure obligations under Regulation FD. Information on or
that can be accessed through Box’s Investor Relations website, these
Twitter accounts, or that is contained in any website to which a
hyperlink is provided herein is not part of this press release, and the
inclusion of Box’s Investor Relations website address, these Twitter
accounts, and any hyperlinks are only inactive textual references.
This press release, the financial tables, as well as other supplemental
information including the reconciliations of non-GAAP financial measures
and certain key metrics to their nearest comparable GAAP financial
measures, are also available on Box’s Investor Relations website. Box
also provides investor information, including news and commentary about
Box’s business and financial performance, Box’s filings with the
Securities and Exchange Commission, notices of investor events and Box’s
press and earnings releases, on Box’s Investor Relations website.
Forward-Looking Statements
This press release contains forward-looking statements that involve
risks and uncertainties, including statements regarding Box’s
expectations regarding the size of its market opportunity, 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
profitability on a quarterly or ongoing basis, its expectations
regarding free cash flow, the timing of recent and planned product
introductions and enhancements, the short- and long-term success, market
adoption and retention, capabilities, and benefits of such product
introductions and enhancements, and the success of strategic
partnerships, as well as expectations regarding its revenue, gross
margin, 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 2019 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) Box’s limited operating history, which makes it difficult to predict
future results; (6) 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; (7) Box’s ability to provide timely and successful
enhancements, new features and modifications to its platform and
services; (8) actual or perceived security vulnerabilities in Box’s
services or any breaches of Box’s security controls; and (9) 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, 2018. 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 income (loss), non-GAAP net income (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 financial measures and certain key
metrics to their nearest comparable GAAP financial measures at the end
of this press release.
Box uses these non-GAAP financial measures and key metrics for financial
and operational decision-making and as a means to evaluate
period-to-period comparisons. Box’s management believes that these
non-GAAP financial measures and key metrics provide meaningful
supplemental information regarding Box’s performance by excluding
certain expenses that may not be indicative of Box’s recurring core
business operating results. Box believes that both management and
investors benefit from referring to these non-GAAP financial measures
and key metrics in assessing Box’s performance and when planning,
forecasting, and analyzing future periods. These non-GAAP financial
measures and key metrics also facilitate management's internal
comparisons to Box’s historical performance as well as comparisons to
Box’s competitors' operating results. Box believes these non-GAAP
financial measures and key metrics are useful to investors both because
(1) they allow for greater transparency with respect to key metrics used
by management in its financial and operational decision-making and (2)
they are used by Box’s institutional investors and the analyst community
to help them analyze the health of Box’s business.
A limitation of non-GAAP financial measures and key metrics is that they
do not have uniform definitions. Further, Box’s definitions will likely
differ from the definitions used by other companies, including peer
companies, and therefore comparability may be limited. Thus, Box’s
non-GAAP financial measures and key metrics should be considered in
addition to, and not as a substitute for, or in isolation from, measures
prepared in accordance with GAAP. Additionally, in the case of
stock-based compensation expense, if Box did not pay a portion of
compensation in the form of stock-based compensation expense, the cash
salary expense included in cost of revenue and operating expenses would
be higher, which would affect Box’s cash position.
Non-GAAP operating 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 income (loss) and non-GAAP net income (loss) per share. Box
defines non-GAAP net income (loss) as GAAP net income (loss) excluding
expenses related to SBC, intangible assets amortization, and as
applicable, other special items. Box defines non-GAAP net income (loss)
per share as non-GAAP net income (loss) divided by the weighted average
outstanding shares.
Billings. Billings reflect, in any particular period, (1) sales
to new customers, plus (2) subscription renewals and (3) expansion
within existing customers, and represent amounts invoiced for all
products and professional services. Box calculates billings for a period
by adding changes in deferred revenue and contract assets in that period
to revenue. Box believes that billings help investors better understand
sales activity for a particular period, which is not necessarily
reflected in revenue as a result of the fact that Box recognizes
subscription revenue ratably over the subscription term. Box considers
billings a significant performance measure 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, deferred revenue, and contract
assets, all of which are financial measures calculated in accordance
with GAAP.
Free cash flow. Box defines free cash flow as cash flows from
operating activities less purchases of property and equipment, principal
payments of capital lease obligations, capitalized internal-use software
costs, and other items that did not or are not expected to require
cash settlement and that management considers to be outside of Box’s
core business. Box specifically identifies adjusting items in
the reconciliation of GAAP to non-GAAP financial measures. Prior to the
adoption of Accounting Standards Update 2016-18, Restricted Cash,
historically, these adjusting items include the use and release of
restricted cash 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 financial measures and certain key metrics to their nearest
comparable GAAP financial 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 more than 90,000 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,
2018
|
|
*
|
|
January 31,
2018
|
|
**
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
200,104
|
|
|
|
$
|
208,076
|
|
|
Accounts receivable, net
|
|
|
|
|
105,714
|
|
|
|
|
162,133
|
|
|
Prepaid expenses and other current assets
|
|
|
|
|
15,037
|
|
|
|
|
11,391
|
|
|
Deferred commissions
|
|
|
|
|
18,772
|
|
|
|
|
17,589
|
|
|
Total current assets
|
|
|
|
|
339,627
|
|
|
|
|
399,189
|
|
|
Property and equipment, net
|
|
|
|
|
133,374
|
|
|
|
|
123,977
|
|
|
Intangible assets, net
|
|
|
|
|
—
|
|
|
|
|
24
|
|
|
Goodwill
|
|
|
|
|
18,740
|
|
|
|
|
16,293
|
|
|
Restricted cash
|
|
|
|
|
238
|
|
|
|
|
350
|
|
|
Deferred commissions, non-current
|
|
|
|
|
47,379
|
|
|
|
|
8,330
|
|
|
Other long-term assets
|
|
|
|
|
7,529
|
|
|
|
|
5,403
|
|
|
Total assets
|
|
|
|
$
|
546,887
|
|
|
|
$
|
553,566
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
14,038
|
|
|
|
$
|
17,036
|
|
|
Accrued compensation and benefits
|
|
|
|
|
23,077
|
|
|
|
|
37,707
|
|
|
Accrued expenses and other current liabilities
|
|
|
|
|
32,048
|
|
|
|
|
26,198
|
|
|
Capital lease obligations
|
|
|
|
|
24,285
|
|
|
|
|
18,844
|
|
|
Deferred revenue
|
|
|
|
|
281,289
|
|
|
|
|
291,902
|
|
|
Deferred rent
|
|
|
|
|
3,251
|
|
|
|
|
2,280
|
|
|
Total current liabilities
|
|
|
|
|
377,988
|
|
|
|
|
393,967
|
|
|
Debt, non-current
|
|
|
|
|
40,000
|
|
|
|
|
40,000
|
|
|
Capital lease obligations, non-current
|
|
|
|
|
33,965
|
|
|
|
|
26,980
|
|
|
Deferred revenue, non-current
|
|
|
|
|
19,952
|
|
|
|
|
29,021
|
|
|
Deferred rent, non-current
|
|
|
|
|
45,160
|
|
|
|
|
45,882
|
|
|
Other long-term liabilities
|
|
|
|
|
4,176
|
|
|
|
|
2,748
|
|
|
Total liabilities
|
|
|
|
|
521,241
|
|
|
|
|
538,598
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock (1)
|
|
|
|
|
14
|
|
|
|
|
13
|
|
|
Additional paid-in capital
|
|
|
|
|
1,141,100
|
|
|
|
|
1,054,932
|
|
|
Treasury stock
|
|
|
|
|
(1,177
|
)
|
|
|
|
(1,177
|
)
|
|
Accumulated other comprehensive (loss) income
|
|
|
|
|
(87
|
)
|
|
|
|
288
|
|
|
Accumulated deficit
|
|
|
|
|
(1,114,204
|
)
|
|
|
|
(1,039,088
|
)
|
|
Total stockholders’ equity
|
|
|
|
|
25,646
|
|
|
|
|
14,968
|
|
|
Total liabilities and stockholders’ equity
|
|
|
|
$
|
546,887
|
|
|
|
$
|
553,566
|
|
|
|
(1) As of October 31, 2018, there were 143,387 shares of Box's
Class A common stock outstanding.
|
|
* As reported under ASC Topic 606
|
** As reported under ASC Topic 605
|
|
|
BOX, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
|
|
Nine Months Ended
October 31,
|
|
|
|
|
|
|
2018
|
|
*
|
|
2017
|
|
**
|
|
2018
|
|
*
|
|
2017
|
|
**
|
Revenue
|
|
|
|
$
|
155,944
|
|
|
|
$
|
129,304
|
|
|
|
$
|
444,673
|
|
|
|
$
|
369,467
|
|
|
Cost of revenue(1)(2)
|
|
|
|
|
44,724
|
|
|
|
|
34,471
|
|
|
|
|
126,397
|
|
|
|
|
99,972
|
|
|
Gross profit
|
|
|
|
|
111,220
|
|
|
|
|
94,833
|
|
|
|
|
318,276
|
|
|
|
|
269,495
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development(2)
|
|
|
|
|
42,310
|
|
|
|
|
34,812
|
|
|
|
|
122,388
|
|
|
|
|
102,388
|
|
|
Sales and marketing(1)(2)
|
|
|
|
|
84,490
|
|
|
|
|
81,670
|
|
|
|
|
238,472
|
|
|
|
|
225,604
|
|
|
General and administrative(1)(2)
|
|
|
|
|
23,884
|
|
|
|
|
20,910
|
|
|
|
|
69,959
|
|
|
|
|
63,037
|
|
|
Total operating expenses
|
|
|
|
|
150,684
|
|
|
|
|
137,392
|
|
|
|
|
430,819
|
|
|
|
|
391,029
|
|
|
Loss from operations
|
|
|
|
|
(39,464
|
)
|
|
|
|
(42,559
|
)
|
|
|
|
(112,543
|
)
|
|
|
|
(121,534
|
)
|
|
Interest expense, net
|
|
|
|
|
(47
|
)
|
|
|
|
(287
|
)
|
|
|
|
(208
|
)
|
|
|
|
(802
|
)
|
|
Other (loss) income, net
|
|
|
|
|
(321
|
)
|
|
|
|
277
|
|
|
|
|
(1,243
|
)
|
|
|
|
560
|
|
|
Loss before provision for income taxes
|
|
|
|
|
(39,832
|
)
|
|
|
|
(42,569
|
)
|
|
|
|
(113,994
|
)
|
|
|
|
(121,776
|
)
|
|
Provision for income taxes
|
|
|
|
|
364
|
|
|
|
|
355
|
|
|
|
|
924
|
|
|
|
|
519
|
|
|
Net loss
|
|
|
|
$
|
(40,196
|
)
|
|
|
$
|
(42,924
|
)
|
|
|
$
|
(114,918
|
)
|
|
|
$
|
(122,295
|
)
|
|
Net loss per common share, basic and diluted
|
|
|
|
$
|
(0.28
|
)
|
|
|
$
|
(0.32
|
)
|
|
|
$
|
(0.82
|
)
|
|
|
$
|
(0.92
|
)
|
|
Weighted-average shares used to compute net loss per share, basic
and diluted
|
|
|
|
|
142,366
|
|
|
|
|
134,636
|
|
|
|
|
140,559
|
|
|
|
|
133,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes intangible assets amortization as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
|
|
Nine Months Ended
October 31,
|
|
|
|
|
|
|
2018
|
|
|
|
2017
|
|
|
|
2018
|
|
|
|
2017
|
|
|
Cost of revenue
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
365
|
|
|
Sales and marketing
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
9
|
|
|
|
|
—
|
|
|
General and administrative
|
|
|
|
|
—
|
|
|
|
|
39
|
|
|
|
|
15
|
|
|
|
|
116
|
|
|
Total intangible assets amortization
|
|
|
|
$
|
—
|
|
|
|
$
|
39
|
|
|
|
$
|
24
|
|
|
|
$
|
481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
|
|
Nine Months Ended
October 31,
|
|
|
|
|
|
|
2018
|
|
|
|
2017
|
|
|
|
2018
|
|
|
|
2017
|
|
|
Cost of revenue
|
|
|
|
$
|
3,598
|
|
|
|
$
|
2,814
|
|
|
|
$
|
10,280
|
|
|
|
$
|
7,945
|
|
|
Research and development
|
|
|
|
|
12,043
|
|
|
|
|
9,705
|
|
|
|
|
33,668
|
|
|
|
|
28,419
|
|
|
Sales and marketing
|
|
|
|
|
9,708
|
|
|
|
|
8,208
|
|
|
|
|
27,701
|
|
|
|
|
23,882
|
|
|
General and administrative
|
|
|
|
|
6,441
|
|
|
|
|
4,796
|
|
|
|
|
17,437
|
|
|
|
|
12,290
|
|
|
Total stock-based compensation
|
|
|
|
$
|
31,790
|
|
|
|
$
|
25,523
|
|
|
|
$
|
89,086
|
|
|
|
$
|
72,536
|
|
|
|
* As reported under ASC Topic 606
|
** As reported under ASC Topic 605
|
|
|
BOX, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
(In Thousands)
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
|
|
Nine Months Ended
October 31,
|
|
|
|
|
|
|
2018
|
|
*
|
|
2017 (as
adjusted)
|
|
**
|
|
2018
|
|
*
|
|
2017 (as
adjusted)
|
|
**
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
$
|
(40,196
|
)
|
|
|
$
|
(42,924
|
)
|
|
|
$
|
(114,918
|
)
|
|
|
$
|
(122,295
|
)
|
|
Adjustments to reconcile net loss to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
11,433
|
|
|
|
|
9,913
|
|
|
|
|
34,677
|
|
|
|
|
29,250
|
|
|
Stock-based compensation expense
|
|
|
|
|
31,790
|
|
|
|
|
25,523
|
|
|
|
|
89,086
|
|
|
|
|
72,536
|
|
|
Amortization of deferred commissions
|
|
|
|
|
4,516
|
|
|
|
|
5,393
|
|
|
|
|
12,231
|
|
|
|
|
15,751
|
|
|
Loss on disposal of property and equipment
|
|
|
|
|
586
|
|
|
|
|
—
|
|
|
|
|
586
|
|
|
|
|
—
|
|
|
Other
|
|
|
|
|
(18
|
)
|
|
|
|
(124
|
)
|
|
|
|
(13
|
)
|
|
|
|
(83
|
)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
|
9,065
|
|
|
|
|
12,023
|
|
|
|
|
57,001
|
|
|
|
|
24,245
|
|
|
Deferred commissions
|
|
|
|
|
(9,753
|
)
|
|
|
|
(4,616
|
)
|
|
|
|
(23,057
|
)
|
|
|
|
(13,235
|
)
|
|
Prepaid expenses and other assets
|
|
|
|
|
350
|
|
|
|
|
2,746
|
|
|
|
|
(4,583
|
)
|
|
|
|
(3,197
|
)
|
|
Accounts payable
|
|
|
|
|
959
|
|
|
|
|
(2,592
|
)
|
|
|
|
(246
|
)
|
|
|
|
4,469
|
|
|
Accrued expenses and other liabilities
|
|
|
|
|
(1,552
|
)
|
|
|
|
(4,828
|
)
|
|
|
|
(17,156
|
)
|
|
|
|
(8,721
|
)
|
|
Deferred rent
|
|
|
|
|
(88
|
)
|
|
|
|
1,413
|
|
|
|
|
249
|
|
|
|
|
3,132
|
|
|
Deferred revenue
|
|
|
|
|
(276
|
)
|
|
|
|
12,167
|
|
|
|
|
(9,868
|
)
|
|
|
|
11,022
|
|
|
Net cash provided by operating activities
|
|
|
|
|
6,816
|
|
|
|
|
14,094
|
|
|
|
|
23,989
|
|
|
|
|
12,874
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
|
(5,247
|
)
|
|
|
|
(3,003
|
)
|
|
|
|
(12,613
|
)
|
|
|
|
(4,800
|
)
|
|
Capitalized internal-use software costs
|
|
|
|
|
(1,343
|
)
|
|
|
|
—
|
|
|
|
|
(1,343
|
)
|
|
|
|
—
|
|
|
Proceeds from sale of property and equipment
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
31
|
|
|
Acquisitions and purchases of intangible assets, net of cash
acquired
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(458
|
)
|
|
|
|
—
|
|
|
Net cash used in investing activities
|
|
|
|
|
(6,589
|
)
|
|
|
|
(3,001
|
)
|
|
|
|
(14,412
|
)
|
|
|
|
(4,769
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of stock options
|
|
|
|
|
2,145
|
|
|
|
|
4,002
|
|
|
|
|
14,976
|
|
|
|
|
9,415
|
|
|
Proceeds from issuances of common stock under employee stock
purchase plan
|
|
|
|
|
10,015
|
|
|
|
|
8,640
|
|
|
|
|
21,861
|
|
|
|
|
17,521
|
|
|
Employee payroll taxes paid related to net share settlement of
restricted stock units
|
|
|
|
|
(11,596
|
)
|
|
|
|
(11,284
|
)
|
|
|
|
(36,901
|
)
|
|
|
|
(26,219
|
)
|
|
Acquisition related contingent consideration
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(991
|
)
|
|
Payments of capital lease obligations
|
|
|
|
|
(4,290
|
)
|
|
|
|
(4,781
|
)
|
|
|
|
(17,192
|
)
|
|
|
|
(12,693
|
)
|
|
Net cash used in financing activities
|
|
|
|
|
(3,726
|
)
|
|
|
|
(3,423
|
)
|
|
|
|
(17,256
|
)
|
|
|
|
(12,967
|
)
|
|
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash
|
|
|
|
|
(123
|
)
|
|
|
|
(88
|
)
|
|
|
|
(405
|
)
|
|
|
|
90
|
|
|
Net (decrease) increase in cash, cash equivalents, and
restricted cash
|
|
|
|
|
(3,622
|
)
|
|
|
|
7,582
|
|
|
|
|
(8,084
|
)
|
|
|
|
(4,772
|
)
|
|
Cash, cash equivalents, and restricted cash, beginning of period
|
|
|
|
|
203,964
|
|
|
|
|
191,818
|
|
|
|
|
208,426
|
|
|
|
|
204,172
|
|
|
Cash, cash equivalents, and restricted cash, end of period
|
|
|
|
$
|
200,342
|
|
|
|
$
|
199,400
|
|
|
|
$
|
200,342
|
|
|
|
$
|
199,400
|
|
|
|
* As reported under ASC Topic 606
|
** As reported under ASC Topic 605 and adjusted due to the
adoption of ASU 2016-18
|
|
|
BOX, INC.
RECONCILIATION OF GAAP
TO NON-GAAP DATA
(In Thousands, Except Per
Share Data and Percentages)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
|
|
Nine Months Ended
October 31,
|
|
|
|
|
|
|
2018
|
|
*
|
|
2017
|
|
**
|
|
2018
|
|
*
|
|
2017
|
|
**
|
GAAP operating loss
|
|
|
|
$
|
(39,464
|
)
|
|
|
$
|
(42,559
|
)
|
|
|
$
|
(112,543
|
)
|
|
|
$
|
(121,534
|
)
|
|
Stock-based compensation
|
|
|
|
|
31,790
|
|
|
|
|
25,523
|
|
|
|
|
89,086
|
|
|
|
|
72,536
|
|
|
Intangible assets amortization
|
|
|
|
|
—
|
|
|
|
|
39
|
|
|
|
|
24
|
|
|
|
|
481
|
|
|
Non-GAAP operating loss
|
|
|
|
$
|
(7,674
|
)
|
|
|
$
|
(16,997
|
)
|
|
|
$
|
(23,433
|
)
|
|
|
$
|
(48,517
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating margin
|
|
|
|
|
(25
|
)
|
%
|
|
|
(33
|
)
|
%
|
|
|
(25
|
)
|
%
|
|
|
(33
|
)
|
%
|
Stock-based compensation
|
|
|
|
|
20
|
|
|
|
|
20
|
|
|
|
|
20
|
|
|
|
|
20
|
|
|
Intangible assets amortization
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Non-GAAP operating margin
|
|
|
|
|
(5
|
)
|
%
|
|
|
(13
|
)
|
%
|
|
|
(5
|
)
|
%
|
|
|
(13
|
)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
|
|
$
|
(40,196
|
)
|
|
|
$
|
(42,924
|
)
|
|
|
$
|
(114,918
|
)
|
|
|
$
|
(122,295
|
)
|
|
Stock-based compensation
|
|
|
|
|
31,790
|
|
|
|
|
25,523
|
|
|
|
|
89,086
|
|
|
|
|
72,536
|
|
|
Intangible assets amortization
|
|
|
|
|
—
|
|
|
|
|
39
|
|
|
|
|
24
|
|
|
|
|
481
|
|
|
Non-GAAP net loss
|
|
|
|
$
|
(8,406
|
)
|
|
|
$
|
(17,362
|
)
|
|
|
$
|
(25,808
|
)
|
|
|
$
|
(49,278
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share, basic and diluted
|
|
|
|
$
|
(0.28
|
)
|
|
|
$
|
(0.32
|
)
|
|
|
$
|
(0.82
|
)
|
|
|
$
|
(0.92
|
)
|
|
Stock-based compensation
|
|
|
|
|
0.22
|
|
|
|
|
0.19
|
|
|
|
|
0.64
|
|
|
|
|
0.55
|
|
|
Intangible assets amortization
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Non-GAAP net loss per share, basic and diluted
|
|
|
|
$
|
(0.06
|
)
|
|
|
$
|
(0.13
|
)
|
|
|
$
|
(0.18
|
)
|
|
|
$
|
(0.37
|
)
|
|
Weighted-average shares used to compute net loss per
share, basic and diluted
|
|
|
|
|
142,366
|
|
|
|
|
134,636
|
|
|
|
|
140,559
|
|
|
|
|
133,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
$
|
6,816
|
|
|
|
$
|
14,094
|
|
***
|
|
$
|
23,989
|
|
|
|
$
|
12,874
|
|
***
|
Purchases of property and equipment
|
|
|
|
|
(5,247
|
)
|
|
|
|
(3,003
|
)
|
|
|
|
(12,613
|
)
|
|
|
|
(4,800
|
)
|
|
Payments of capital lease obligations
|
|
|
|
|
(4,290
|
)
|
|
|
|
(4,781
|
)
|
|
|
|
(17,192
|
)
|
|
|
|
(12,693
|
)
|
|
Capitalized internal-use software costs
|
|
|
|
|
(1,343
|
)
|
|
|
|
—
|
|
|
|
|
(1,343
|
)
|
|
|
|
—
|
|
|
Free cash flow
|
|
|
|
$
|
(4,064
|
)
|
|
|
$
|
6,310
|
|
***
|
|
$
|
(7,159
|
)
|
|
|
$
|
(4,619
|
)
|
***
|
Net cash used in investing activities
|
|
|
|
$
|
(6,589
|
)
|
|
|
$
|
(3,001
|
)
|
|
|
$
|
(14,412
|
)
|
|
|
$
|
(4,769
|
)
|
|
Net cash used in financing activities
|
|
|
|
$
|
(3,726
|
)
|
|
|
$
|
(3,423
|
)
|
|
|
$
|
(17,256
|
)
|
|
|
$
|
(12,967
|
)
|
|
|
* As reported under ASC Topic 606
|
** As reported under ASC Topic 605
|
*** Adjusted due to the adoption of ASU 2016-18
|
|
|
BOX, INC.
RECONCILIATION OF GAAP REVENUE TO
BILLINGS
(In Thousands)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
|
|
Nine Months Ended
October 31,
|
|
|
|
|
|
|
2018
|
|
*
|
|
2017
|
|
**
|
|
2018
|
|
*
|
|
2017
|
|
**
|
GAAP revenue
|
|
|
|
$
|
155,944
|
|
|
|
$
|
129,304
|
|
|
|
$
|
444,673
|
|
|
|
$
|
369,467
|
|
|
Deferred revenue, end of period
|
|
|
|
|
301,241
|
|
|
|
|
253,006
|
|
|
|
|
301,241
|
|
|
|
|
253,006
|
|
|
Less: deferred revenue, beginning of period
|
|
|
|
|
(301,517
|
)
|
|
|
|
(240,839
|
)
|
|
|
|
(311,109
|
)
|
***
|
|
|
(241,984
|
)
|
|
Contract assets, beginning of period ****
|
|
|
|
|
157
|
|
|
|
|
—
|
|
|
|
|
582
|
|
|
|
|
—
|
|
|
Less: contract assets, end of period ****
|
|
|
|
|
(216
|
)
|
|
|
|
—
|
|
|
|
|
(216
|
)
|
|
|
|
—
|
|
|
Billings
|
|
|
|
$
|
155,609
|
|
|
|
$
|
141,471
|
|
|
|
$
|
435,171
|
|
|
|
$
|
380,489
|
|
|
|
* As reported under ASC Topic 606
|
** As reported under ASC Topic 605
|
*** Balance as of February 1, 2018 upon the adoption of ASC Topic
606
|
**** Contract assets are reported as part of accounts receivable
upon the adoption of ASC Topic 606
|
|
|
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME (LOSS)
PER SHARE GUIDANCE
(In Thousands, Except Per Share
Data)
(Unaudited)
|
|
|
|
|
|
For the Three Months
Ended January 31,
2019
|
|
For the Year Ended
January 31, 2019
|
GAAP net loss per share range, basic and diluted
|
|
|
|
$(0.21-0.20)
|
|
$(1.02-1.01)
|
Stock-based compensation
|
|
|
|
0.23
|
|
0.86
|
Non-GAAP net income (loss) per share range, basic
|
|
|
|
$0.02-0.03
|
|
$(0.16-0.15)
|
Non-GAAP net income (loss) per share range, diluted
|
|
|
|
$0.02-0.03
|
|
$(0.16-0.15)
|
|
|
|
|
|
|
|
Weighted-average shares used to compute GAAP net loss per share,
basic and diluted
|
|
|
|
143,701
|
|
141,362
|
|
|
|
|
|
|
|
Weighted-average shares used to compute Non-GAAP net income (loss)
per share
|
|
|
|
|
|
|
Basic
|
|
|
|
143,701
|
|
141,362
|
Diluted
|
|
|
|
149,829
|
|
141,362
|
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20181128005697/en/
Investors:
Alice Kousoum Lopatto and Elaine Gaudioso
+1
650-209-3467
[email protected]
Media:
Denis Roy and Rachel Levine
+1 650-543-6926
[email protected]
Source: Box, Inc.