Box Inc (BOX) Reports Modest Revenue Growth and Strong Non-GAAP Earnings Per Share Increase in ...
Revenue increased by 5% year-over-year to $262 million in Q3 FY2024.
Non-GAAP diluted net income per share grew by 16% year-over-year to $0.36.
Free cash flow rose by 6% year-over-year, reaching $58 million.
Box Inc (NYSE:BOX) released its 8-K filing on December 5, 2023, detailing the third quarter of fiscal year 2024 financial results.
Box Inc (NYSE:BOX), a leader in the Content Cloud market, announced its financial results for the third quarter of fiscal year 2024 on December 5, 2023. The company reported a revenue of $262 million, marking a 5% increase from the same quarter in the previous fiscal year. This growth reflects the company's ongoing commitment to its Content Cloud strategy and product innovation.
Fiscal Third Quarter Financial Performance
Box Inc (NYSE:BOX) faced a headwind against its expense forecast due to a decrease in proceeds from the sale of certain data center equipment as it completes its migration to the public cloud. Despite this, the company achieved a non-GAAP operating income of $64.6 million, which is an 8% increase from the previous year, representing 24.7% of revenue. The non-GAAP diluted net income per share attributable to common stockholders was $0.36, up from $0.31 in the third quarter of fiscal year 2023.
Box Inc (NYSE:BOX) also reported a 3% year-over-year increase in net cash provided by operating activities, which amounted to $71.8 million. The non-GAAP free cash flow for the quarter was $58.3 million, a 6% increase from the prior year's quarter.
Key Financial Metrics and Commentary
Box Inc (NYSE:BOX) co-founder and CEO Aaron Levie highlighted the company's product leadership with Box AI and Box Hubs, stating,
We continue to execute on our Content Cloud strategy, creating the only end-to-end platform that can help customers power their complete content lifecycle in a single architecture."
CFO Dylan Smith emphasized the company's focus on profitable growth and operating margin expansion, which resulted in a 16% year-over-year growth in earnings per share.
The company's Remaining Performance Obligations (RPO) stood at $1.131 billion as of October 31, 2023, a 7% increase from the same date in the previous year. However, billings for the quarter saw a 2% decrease, amounting to $253.7 million.
Business Highlights and Outlook
Box Inc (NYSE:BOX) reported several business wins and expansions with notable organizations. The company also introduced new products such as Box AI and Box Hubs, and announced strategic partnerships aimed at enhancing its Content Cloud offerings.
For the fourth quarter of fiscal year 2024, Box Inc (NYSE:BOX) expects revenue to be in the range of $262 million to $264 million, with a non-GAAP operating margin of approximately 25.5%. The company anticipates a GAAP net income per share attributable to common stockholders to be between $0.05 and $0.06, and a non-GAAP diluted net income per share in the range of $0.38 to $0.39.
The full year fiscal 2024 guidance projects revenue to be between $1.037 billion and $1.039 billion, with a non-GAAP operating margin of 24.5%. Box Inc (NYSE:BOX) expects a GAAP net income per share attributable to common stockholders to be between $0.15 and $0.16, and a non-GAAP diluted net income per share between $1.42 and $1.43.
For more detailed financial information and the reconciliation of GAAP to non-GAAP financial measures, readers are encouraged to review the full 8-K filing.
Conclusion
Box Inc (NYSE:BOX) continues to demonstrate its ability to drive growth and profitability through strategic initiatives and product innovation. The company's focus on expanding its Content Cloud offerings and maintaining cost discipline has resulted in solid financial performance, despite economic challenges and currency headwinds.
Explore the complete 8-K earnings release (here) from Box Inc for further details.
This article first appeared on GuruFocus.
