Market Overview

Box Reports Record Revenue of $148 Million, Up 21 Percent Year-Over-Year for Fiscal Second Quarter 2019

Share:
  • Revenue of $148.2 Million, Up 21 Percent Year-Over-Year
  • Deferred Revenue of $301.5 Million, Up 25 Percent Year-Over-Year
  • GAAP Operating Margin Up 7 Percent and Non-GAAP Operating Margin Up 8
    Percent Year-Over-Year

Box, Inc. (NYSE:BOX), a leader in cloud content management, today
announced financial results for the second quarter of fiscal 2019, which
ended July 31, 2018.

"Driving deeper relationships with customers such as JLL, Nationwide and
Societe Generale, as well as focusing on strategic solution sales, led
to another quarter of strong attach rates for add-on products like Box
Governance, Zones and Platform," said Aaron Levie, co-founder and CEO of
Box. "Our approach to providing a single, neutral platform for cloud
content management with enterprise-grade security and powerful workflow
capabilities positions us to help the world's largest and most regulated
enterprises digitize their workplace and business processes."

"In the second quarter, we delivered solid top line growth and improved
cash flow from operations by over $8 million year-over-year," said Dylan
Smith, co-founder and CFO of Box. "Our proven ability to further capture
our market opportunity while driving operational leverage positions us
for long-term growth on our path to $1 billion and beyond."

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 July
31, 2018 under ASC 605 for comparison to the prior year.

Fiscal Second Quarter Financial Highlights

  • Revenue for the second quarter of fiscal 2019 was a record $148.2
    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 fiscal 2018) from the second quarter of fiscal 2018.
  • Deferred revenue as of July 31, 2018 was $301.5 million, an increase
    of 25% (ASC 606 to ASC 605) and 27% (ASC 605 to ASC 605) from July 31,
    2017.
  • Billings for the second quarter of fiscal 2019 were $162.8 million, an
    increase of 17% (ASC 606 to ASC 605 and ASC 605 to ASC 605) from the
    second quarter of fiscal 2018.
  • GAAP operating loss in the second quarter of fiscal 2019 was $37.2
    million, or 25% of revenue, under ASC 606, and $40.1 million, or 27%
    of revenue, under ASC 605. This compares to GAAP operating loss of
    $39.0 million, or 32% of revenue, in the second quarter of fiscal 2018.
  • Non-GAAP operating loss in the second quarter of fiscal 2019 was $6.5
    million, or 4% of revenue (ASC 606), and $9.4 million, or 6% of
    revenue (ASC 605). This compares to a non-GAAP operating loss of $14.9
    million, or 12% of revenue, in the second quarter of fiscal 2018.
  • GAAP net loss per share, basic and diluted, in the second quarter of
    fiscal 2019 was $0.27 (ASC 606) and $0.29 (ASC 605) on 140.7 million
    shares outstanding. This compares to a GAAP net loss per share of
    $0.30 in the second quarter of fiscal 2018 on 133.0 million shares
    outstanding.
  • Non-GAAP net loss per share, basic and diluted, in the second quarter
    of fiscal 2019 was $0.05 (ASC 606) and $0.07 (ASC 605). This compares
    to non-GAAP net loss per share of $0.11 in the second quarter of
    fiscal 2018.
  • Net cash used in operating activities in the second quarter of fiscal
    2019 totaled negative $1.3 million. This compares to net cash used in
    operating activities of negative $9.8 million in the second quarter of
    fiscal 2018.
  • Free cash flow in the second quarter of fiscal 2019 was negative $10.3
    million. This compares to negative $15.0 million in the second quarter
    of fiscal 2018.

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 87,000 businesses, including
    new or expanded deployments with leading organizations such as Canon
    U.S.A., City of Atlanta, JLL, Lionsgate, Nationwide, The Philadelphia
    Phillies, Rodan & Fields, Sacramento Kings, Societe Generale U.S. and
    World Fuel Services.
  • Announced an expanded private beta for Box
    Skills
    , the availability of a new service from IBM to apply Watson
    AI technologies for building custom Box Skills, and support for new
    machine learning capabilities from Microsoft Azure.
  • Announced new integrations with best-of-breed cloud services,
    including ServiceNow
    and Quip,
    to make collaboration on enterprises' most critical content seamless,
    simple and secure.
  • Unveiled the Box
    for Gmail add-on
    , which allows customers to access Box files and
    download email attachments to Box without leaving the Gmail interface.
  • Welcomed the addition of employee teams from both Progressly
    and Butter.ai
    to Box to help execute on the company's vision of enabling enterprises
    to get the most value out of their content with Box.
  • Announced that Box was positioned as a Leader in Gartner's 2018 Content
    Collaboration Platforms Magic Quadrant
    report for the fifth
    consecutive year.
  • Moved
    to a new office in Tokyo
    , demonstrating Box's commitment to
    continued growth in the Japanese market and helping Japanese
    enterprises make the shift to the cloud for content management.

Outlook

  • Q3 FY19 Guidance: Revenue is expected to be in the range of
    $154 million to $155 million. GAAP and non-GAAP basic and diluted loss
    per share are expected to be in the range of ($0.30) to ($0.29) and
    ($0.08) to ($0.07), respectively. Weighted average basic and diluted
    shares outstanding are expected to be approximately 142 million.
  • Full Year FY19 Guidance: Revenue is expected to be in the range
    of $606 million to $608 million. GAAP and non-GAAP basic and diluted
    loss per share are expected to be in the range of ($1.02) to ($1.00)
    and ($0.18) to ($0.16), respectively. Weighted average basic and
    diluted shares outstanding are expected to be approximately
    142 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: 8088005
+
1-647-689-4084 (international), conference ID: 8088005

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: 8088005
+ 1-416-621-4642 (international), conference ID: 8088005

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 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, the timing of recent and
planned product introductions and enhancements, the short- and long-term
success, market adoption, capabilities, 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 third 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 April 30, 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 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 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 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.

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, 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 87,000 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)

   
July 31, January 31,
2018 * 2018 **
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 203,726 $ 208,076
Accounts receivable, net 114,779 162,133
Prepaid expenses and other current assets 16,459 11,391
Deferred commissions   16,855   17,589
Total current assets 351,819 399,189
Property and equipment, net 125,357 123,977
Intangible assets, net 24
Goodwill 18,740 16,293
Restricted cash 238 350
Deferred commissions, non-current 44,059 8,330
Other long-term assets   5,211   5,403
Total assets $ 545,424 $ 553,566
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 12,960 $ 17,036
Accrued compensation and benefits 25,506 37,707
Accrued expenses and other current liabilities 24,818 26,198
Capital lease obligations 21,341 18,844
Deferred revenue 281,765 291,902
Deferred rent   2,947   2,280
Total current liabilities 369,337 393,967
Debt, non-current 40,000 40,000
Capital lease obligations, non-current 31,777 26,980
Deferred revenue, non-current 19,752 29,021
Deferred rent, non-current 45,552 45,882
Other long-term liabilities   3,879   2,748
Total liabilities   510,297   538,598
Stockholders' equity:
Common stock (1) 14 13
Additional paid-in capital 1,110,296 1,054,932
Treasury stock (1,177 ) (1,177 )

 

Accumulated other comprehensive income 2 288
Accumulated deficit   (1,074,008 )   (1,039,088 )
Total stockholders' equity   35,127   14,968
Total liabilities and stockholders' equity $ 545,424 $ 553,566
 
(1)   As of July 31, 2018, there were 141,606 shares of Box's Class A
common stock outstanding. On June 14, 2018, all outstanding shares
of Box's Class B common stock automatically converted into the same
number of shares of Class A common stock pursuant to the terms of
Box's Amended and Restated Certificate of Incorporation, as amended.
Box does not intend to issue any additional shares of Class B common
stock.
 
 
* 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 Six Months Ended
July 31, July 31,
2018 *   2017 ** 2018 *   2017 **
 
Revenue $ 148,222 $ 122,941 $ 288,729 $ 240,163
Cost of revenue(1)(2)   42,605   32,778   81,673   65,501
Gross profit 105,617 90,163 207,056 174,662
Operating expenses:

Research and development(2)

41,830 34,042 80,078 67,576
Sales and marketing(1)(2) 76,984 73,271 153,982 143,934
General and administrative(1)(2)   24,022   21,846   46,075   42,127
Total operating expenses   142,836   129,159   280,135   253,637
Loss from operations (37,219 ) (38,996 ) (73,079 ) (78,975 )
Interest expense, net (91 ) (236 ) (161 ) (515 )
Other (loss) income, net   (579 )   267   (922 )   283
Loss before provision for income taxes (37,889 ) (38,965 ) (74,162 ) (79,207 )
Provision for income taxes   196   320   560   164
Net loss $ (38,085 ) $ (39,285 ) $ (74,722 ) $ (79,371 )
Net loss per common share, basic and diluted $ (0.27 ) $ (0.30 ) $ (0.54 ) $ (0.60 )

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

  140,718   132,981   139,639   132,237
 
(1) Includes intangible assets amortization as follows:
 
Three Months Ended Six Months Ended
July 31, July 31,
2018 * 2017 ** 2018 * 2017 **
Cost of revenue $ $ $ $ 365
Sales and marketing 8 9
General and administrative   2   38   15   77
Total intangible assets amortization $ 10 $ 38 $ 24 $ 442
 
(2) Includes stock-based compensation expense as follows:
Three Months Ended Six Months Ended
July 31, July 31,
2018 * 2017 ** 2018 * 2017 **
Cost of revenue $ 3,561 $ 2,663 $ 6,682 $ 5,131
Research and development 11,477 9,554 21,625 18,714
Sales and marketing 9,932 7,934 17,993 15,674
General and administrative   5,713   3,916   10,996   7,494
Total stock-based compensation $ 30,683 $ 24,067 $ 57,296 $ 47,013
 
*   As reported under ASC Topic 606
** As reported under ASC Topic 605
   

BOX, INC.

CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS

(In Thousands)

(Unaudited)

 
Three Months Ended Six Months Ended
July 31, July 31,
2018 *  

2017 (as
adjusted)

** 2018 *  

2017 (as
adjusted)

**
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (38,085 ) $ (39,285 ) $ (74,722 ) $ (79,371 )

Adjustments to reconcile net loss to net cash (used in) provided
by operating activities:

Depreciation and amortization 11,849 9,765 23,244 19,337
Stock-based compensation expense 30,683 24,067 57,296 47,013
Amortization of deferred commissions 4,040 5,368 7,715 10,358
Other 26 19 5 41
Changes in operating assets and liabilities:
Accounts receivable, net (23,754 ) (25,124 ) 47,936 12,222
Deferred commissions (8,588 ) (5,835 ) (13,304 ) (8,619 )
Prepaid expenses and other assets 267 (3,402 ) (4,933 ) (5,943 )
Accounts payable (1,680 ) (121 ) (1,205 ) 7,061
Accrued expenses and other liabilities 9,113 7,074 (15,604 ) (3,893 )
Deferred rent 294 1,189 337 1,719
Deferred revenue   14,568   16,524   (9,592 )   (1,145 )
Net cash (used in) provided by operating activities (1,267 ) (9,761 ) 17,173 (1,220 )
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (3,326 ) (1,013 ) (7,366 ) (1,797 )
Proceeds from sale of property and equipment 2 1 29

Acquisitions and purchases of intangible assets, net of cash
acquired

  (458 )     (458 )  
Net cash used in investing activities (3,784 ) (1,011 ) (7,823 ) (1,768 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options 9,469 2,957 12,831 5,413

Proceeds from issuances of common stock under employee stock
purchase plan

11,846 8,881

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

(12,010 ) (5,821 ) (25,305 ) (14,935 )
Acquisition related contingent consideration (991 ) (991 )
Payments of capital lease obligations   (5,752 )   (4,176 )   (12,902 )   (7,912 )
Net cash used in financing activities (8,293 ) (8,031 ) (13,530 ) (9,544 )

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

  (158 )   149   (282 )   178

Net decrease in cash, cash equivalents, and restricted cash

(13,502 ) (18,654 ) (4,462 ) (12,354 )

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

  217,466   210,472   208,426   204,172

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

$ 203,964 $ 191,818 $ 203,964 $ 191,818
 
* 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 Six Months Ended
July 31, July 31,
2018

*

  2017 ** 2018 *   2017 **
GAAP operating loss $ (37,219 ) $ (38,996 ) $ (73,079 ) $ (78,975 )
Stock-based compensation 30,683 24,067 57,296 47,013
Intangible assets amortization   10   38   24   442
Non-GAAP operating loss $ (6,526 ) $ (14,891 ) $ (15,759 ) $ (31,520 )
 
GAAP operating margin (25 )

%

(32 ) % (25 ) % (33 ) %
Stock-based compensation 21 20 20 20
Intangible assets amortization        
Non-GAAP operating margin   (4 )

%

 

  (12 ) %   (5 ) %   (13 ) %
 
GAAP net loss $ (38,085 ) $ (39,285 ) $ (74,722 ) $ (79,371 )
Stock-based compensation 30,683 24,067 57,296 47,013
Intangible assets amortization   10   38   24   442
Non-GAAP net loss $ (7,392 ) $ (15,180 ) $ (17,402 ) $ (31,916 )
 
GAAP net loss per share, basic and diluted $ (0.27 ) $ (0.30 ) $ (0.54 ) $ (0.60 )
Stock-based compensation 0.22 0.19 0.42 0.36
Intangible assets amortization        
Non-GAAP net loss per share, basic and diluted $ (0.05 ) $ (0.11 ) $ (0.12 ) $ (0.24 )

Weighted-average shares outstanding, basic and diluted

  140,718   132,981   139,639   132,237
 
Net cash (used in) provided by operating activities $ (1,267 ) $ (9,761 ) *** $ 17,173 $ (1,220 ) ***
Purchases of property and equipment (3,326 ) (1,013 ) (7,366 ) (1,797 )
Payments of capital lease obligations   (5,752 )   (4,176 )   (12,902 )   (7,912 )
Free cash flow $ (10,345 ) $ (14,950 ) *** $ (3,095 ) $ (10,929 ) ***
Net cash used in investing activities $ (3,784 ) $ (1,011 ) $ (7,823 ) $ (1,768 )
Net cash used in financing activities $ (8,293 ) $ (8,031 ) $ (13,530 ) $ (9,544 )
 
* 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 Six Months Ended
July 31, July 31,
2018 *   2017 ** 2018 *   2017 **
GAAP revenue $ 148,222 $ 122,941 $ 288,729 $ 240,163
Deferred revenue, end of period 301,517 240,839 301,517 240,839
Less: deferred revenue, beginning of period (286,949 ) (224,315 ) (311,109 ) *** (241,984 )
Contract assets, beginning of period **** 195 582

Less: contract assets, end of period ****

  (157 )     (157 )  

Billings

$ 162,828 $ 139,465 $ 279,562 $ 239,018
 
*   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 LOSS PER SHARE
GUIDANCE

(In Thousands, Except Per Share Data)

(Unaudited)

 

For the Three Months
Ended October 31, 2018

For the Year Ended
January 31, 2019

GAAP net loss per share range, basic and diluted $(0.30-0.29) $(1.02-1.00)
Stock-based compensation 0.22 0.84
Non-GAAP net loss per share range, basic and diluted $(0.08-0.07) $(0.18-0.16)
Weighted average shares outstanding, basic and diluted 142,481 141,502

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