Expects a combined growth rate of revenue plus free cash flow margin of 43-44% for FY25
announces new share buyback authorization of up to $150 million
Box, Inc. BOXthe leading Content Cloud provider, today hosted its virtual Financial Analyst Day for fiscal year 2023 during which it provided its long-term financial model for the fiscal year ending January 31, 2025 and announced a new share buyback authorization of up to $150 million.
“The profitable growth we achieved in FY22 demonstrates the strength of our underlying business model. Going forward, we expect to continue to improve both our revenue growth rate and our profit margin. free cash flow, and we expect to generate combined earnings of 43-44% in FY25,” said Dylan Smith, co-founder and chief financial officer of Box. “We have built the operating engine to deliver long-term profitable growth and, through our disciplined capital allocation strategy, we are well positioned to create significant shareholder value for years to come. The future of work is there, and we’ve never been more excited about the opportunity before us.”
Long-term financial model
Box provided financial goals for its fiscal year ending January 31, 2025:
Combined growth in revenue plus free cash flow margin is expected to be 43% to 44%.
Revenue growth is expected to be between 15% and 17% year over year.
Non-GAAP* gross margin is expected to be approximately 77%.
The non-GAAP* operating margin should be between 25% and 28%.
New share buyback authorization
Box also announced that its board of directors has authorized a new stock repurchase program under which Box may repurchase up to $150 million of its outstanding Class A common stock over the next twelve months. The timing and total amount of share redemptions, if any, will depend on market conditions and other factors, and may be effected from time to time through open market purchases.
*A reconciliation of these non-GAAP financial objectives to the most directly comparable GAAP financial measures is not available on a forward-looking basis due to uncertainty regarding and potential variability in compensation expense amounts. based stock, amortization of intangible assets and non-recurring expenses that may be incurred in the future. Stock-based compensation expense is impacted by Box’s future hiring and retention needs, as well as the future fair market value of Box’s common stock, all of which are difficult to predict and subject to constant change . The actual amount of stock-based compensation expense in the fiscal year ending January 31, 2025 will have a material impact on Box’s GAAP operating margin and net loss per share available to common shareholders. In addition, amortization of intangible assets, as well as other non-recurring expenses, if any, will also impact results. Accordingly, a reconciliation of non-GAAP financial objectives to the most directly comparable GAAP financial measures for future periods is not available without unreasonable effort.
About the box
Box BOX is the leading content cloud that enables organizations to accelerate business processes, enhance workplace collaboration, and protect their most valuable information, all while working with an industry-leading enterprise computing stack. Founded in 2005, Box simplifies the work of leading global organizations including AstraZeneca, JLL and Morgan Stanley. Box is headquartered in Redwood City, California, and has offices in the United States, Europe, and Asia. To learn more about Box, visit http://www.box.com. To learn more about how Box empowers nonprofits to fulfill their missions, visit Box.org.
Safe Harbor for forward-looking statements
This press release contains forward-looking statements that involve risks, uncertainties and assumptions, including Box’s financial objectives for the fiscal year ended January 31, 2025 for combined revenue growth plus free cash flow margin, revenue growth, non-GAAP gross margin, and non-GAAP operating margin. There are a number of important factors that could cause actual results to differ materially from these forward-looking statements, including: (1) adverse changes in general economic or market conditions, including those caused by the pandemic of COVID-19 or the Russian invasion of Ukraine; (2) delays or reductions in information technology expenditures; (3) factors related to the highly competitive Box market, including but not limited to pricing pressures, industry consolidation, entry of new competitors, and new applications and marketing initiatives by competitors present or future of Box; (4) development of the cloud content management market; (5) the risk that Box’s customers may not renew their subscriptions, expand their use of Box’s services, or adopt new products offered by Box in a timely manner, if at all; (6) Box’s ability to provide timely and successful enhancements, integrations, new features and changes to its platform and services; (7) actual or perceived security vulnerabilities in Box’s services or any breach of Box’s security controls; (8) Box’s ability to realize the expected benefits of its partnerships with third parties; and (9) Box’s ability to successfully integrate acquired businesses and obtain expected benefits from such acquisitions. Additional information about potential factors that could affect Box’s financial results is included in reports on Forms 10-K, 10-Q, and 8-K and other filings by Box with the Securities and Exchange Commission. from time to time, including the annual report. on Form 10-K filed for the fiscal year ended January 31, 2022. These filings are available in the SEC Filings section of Box’s Investor Relations website at www.box.com/investors. Box undertakes no obligation to update any 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.