Box, Inc. (NYSE:BOX) is gearing up to unveil its fourth-quarter fiscal 2024 results on March 5.
For the fourth quarter of fiscal 2024, Box expects revenues to fall between $262 million and $264 million, indicating a potential 3% increase at the higher end of the spectrum compared to the figure reported in the previous fiscal year. The constant currency growth rate is forecasted to be around 5%. The Zacks Consensus Estimate for the same period stands at $262.9 million, suggesting a growth of 2.5% from the corresponding quarter in the last fiscal year.
Box also anticipates non-GAAP earnings per share to range between 38 and 39 cents. The consensus estimate for this metric is set at 38 cents, marking a 2.7% improvement from the earnings reported in the same quarter of the previous fiscal year. Notably, the bottom line figure has remained unchanged over the past 30 days.
The adoption of Box’s Content Cloud by both existing and new customers is expected to have positively impacted the company’s performance in the fiscal fourth quarter.
BOX’s Content Cloud, with its enhanced security, compliance, data governance, and privacy features, is likely to have driven momentum across government and private organizations in the period under review.
Furthermore, the company’s efforts to strengthen its content management capabilities are anticipated to have made a significant contribution.
During the quarter, Box made a strategic acquisition of Crooze, a provider of no-code enterprise content management applications, aimed at assisting organizations in managing various aspects such as contract lifecycle, digital assets, controlled documents, and enterprise content libraries.
Additionally, the expansion of multi-product offerings and deeper integrations is expected to have bolstered the company’s net retention rate in the quarter.
The continued enhancement of Box Sign capabilities is likely to have facilitated customers in transitioning their signature transactions to the cloud.
In the fiscal fourth quarter, Box announced that its native e-signature product, Box Sign, now complies with FDA 21 CFR Part 11 regulations for electronic signatures, which is available as part of the Box GxP Validation offering in the Box Enterprise Plus plan. This announcement is expected to have further propelled customer momentum.
Moreover, Box’s growing traction in Enterprise Plus Suites is likely to have strengthened its attach rate during the quarter.
Overall, these initiatives are expected to have a positive impact on the upcoming results.
However, concerns regarding rising expenses related to investments in cloud infrastructure, sales and marketing, and administration are likely to persist in the quarter under review.
Additionally, the escalating competition in the cloud space remains a significant risk factor.
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