Box, Inc. (NYSE:BOX) has released its fourth-quarter fiscal 2024 results, reporting non-GAAP earnings per share of 42 cents, surpassing the estimates by 10.5%. This marks a substantial 13.5% increase year over year.
While total revenues of $262.88 million slightly missed the consensus mark of $262.92 million, they still demonstrated a solid 2% year-over-year growth (4% on a constant currency basis). The company attributes this growth to the strength of its go-to-market strategy and the increasing adoption of multi-product offerings.
The Content Cloud platform and the Enterprise Plus Suites showed solid momentum, driving the top-line growth. Additionally, the company saw positive traction with Box AI and noticed signs of stabilization in IT budgets during the quarter.
Despite these positives, macroeconomic challenges remained a concern.
In terms of quarterly performance, billings reached $379.3 million, up 6% year over year (10% on a constant currency basis), while deferred revenues were $586.9 million, reflecting a 4% increase from the prior fiscal year quarter (7% growth on a constant currency basis).
Box observed an 81% attach rate for its Suites, marking a significant 900 basis points year-over-year increase. However, the net retention rate dipped to 101% at the end of the fiscal fourth quarter, down 700 basis points year over year due to macroeconomic challenges.
Non-GAAP gross margin contracted slightly to 78.4% while operating expenses increased by 1.8% year over year. On a non-GAAP basis, the operating margin expanded to 26.7%.
As of January 31, 2024, Box’s cash and cash equivalents stood at $383.7 million, and short-term investments amounted to $96.9 million. The company generated $89.3 million in cash from operations during the quarter and reported a free cash flow of $81.3 million.
Looking ahead, for the first quarter of fiscal 2025, Box expects revenues between $261 million and $263 million, with non-GAAP earnings per share projected in the range of 35-36 cents. For the full fiscal year, revenue is expected to be in the range of $1.08-$1.085 billion, with non-GAAP earnings per share forecasted to be $1.53-$1.57.
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