Box Announces Record Third Quarter Fiscal 2016 Results
REDWOOD CITY, Calif.–(BUSINESS WIRE)–Box, Inc., the leading enterprise content management and collaboration platform, today announced financial results for the third quarter of fiscal 2016, which ended October 31, 2015. During the quarter, Box added over 4,000 new customers, and added or significantly expanded deployments with leading enterprises like Amgen, Westfield Corporation, Sally Beauty Holdings, Grey Global Group, Southwest Airlines, Nest Labs, and more.
“Enterprises in every industry are moving content to the cloud by investing in modern platforms that accelerate employee productivity and replace legacy systems,” said Aaron Levie, co-founder and CEO of Box. “As our strong revenue growth in Q3 indicates, Box is uniquely positioned to drive this transition. We continue to deliver innovations like Box Governance and Box Platform that differentiate us from competitors and assist our global customers to standardize on Box as their next-generation content platform.”
“In the third quarter, we delivered strong year-over-year revenue growth of 38% and billings growth of 37%,” said Dylan Smith, Box co-founder and CFO. “We continued to make significant progress towards achieving positive free cash flow in the fourth quarter of our next fiscal year.”
Fiscal Third Quarter Financial Highlights
- Revenue for the third quarter of fiscal 2016 was a record of $78.7 million, an increase of 38% from the third quarter of fiscal 2015.
- Billings in the third quarter of fiscal 2016 were a record of $89.4 million, an increase of 37% from the third quarter of fiscal 2015.
- Non-GAAP operating loss in the third quarter of fiscal 2016 was $37.9 million, or 48% of revenue. This compares to non-GAAP operating loss of $34.2 million, or 60% of revenue, in the third quarter of fiscal 2015. GAAP operating loss in the third quarter of fiscal 2016 was $55.0 million, or 70% of revenue. This compares to GAAP operating loss of $44.8 million, or 78% of revenue, in the third quarter of fiscal 2015.
- Non-GAAP net loss per share attributable to common stockholders, basic and diluted, in the third quarter of fiscal 2016 was $0.31 on 121.8 million shares outstanding, compared to $2.32 in the third quarter of fiscal 2015 on 15.0 million shares outstanding. GAAP net loss per share attributable to common stockholders, basic and diluted, in the third quarter of fiscal 2016 was $0.45 on 121.8 million shares outstanding, compared to $3.40 in the third quarter of fiscal 2015 on 15.0 million shares outstanding.
- Net cash used in operating activities in the third quarter of fiscal 2016 totaled $17.3 million, compared to $21.7 million in the second quarter of fiscal 2016 and $19.6 million in the third quarter of fiscal 2015.
- Cash, cash equivalents, marketable securities, and restricted cash were $244.0 million as of October 31, 2015, of which $29.1 million was restricted.
Business Highlights (through October 31, 2015, unless otherwise noted)
- Customer Growth and Momentum:
- Added or significantly expanded deployments with leading enterprises like Amgen, Westfield Corporation, Sally Beauty Holdings, Grey Global Group, Southwest Airlines, Nest Labs, and more.
- Grew paying customer base to 54,000 businesses, including 55% of the Fortune 500.
- Increased number of registered users to over 41 million.
- Hosted nearly 5,000 attendees, representing thousands of customers, prospects, and partners from more than 15 different countries at BoxWorks 2015.
- Product Innovation:
- Launched Box Platform, a new way for Box’s customers, third party developers, and independent software vendors to build applications and digital experiences that leverage Box’s world-class content management technology.
- Released Box Capture, Box’s new app for the enterprise that securely connects an iOS device’s camera to business processes for field and mobile workers.
- Announced new capabilities to Box Governance, including Legal Holds, expanded Information Rights Management, and Device Trust.
- Announced support for three new content viewing experiences in Box — HD video, DICOM viewing for medical images like X-rays and MRIs, and interactive 3D.
- Strategic Partnerships:
- Launched new integrations with IBM, including IBM Content Navigator and IBM StoredIQ, and introduced upcoming integrations with IBM Case Manager and IBM Datacap.
- Announced support for native integrations with Adobe, Autodesk and Docusign to simplify workflow and accelerate collaboration.
- Announced that Box was selected by Microsoft as one of the first partners to integrate with Microsoft’s InTune mobile security solution.
- Unveiled Box Enterprise Key Management with support for the new Amazon Web Services Key Management Service(KMS) to make customer managed encryption key functionality accessible to more customers.
- Welcomed new applications to the Box Trust partner program, including Microsoft’s Adallom, IBM Cloud Enforcer, and Amazon Web Services.
- Q4 FY16 Guidance: Revenue is expected to be in the range of $81 million to $82 million, and non-GAAP operating margin is expected to be in the range of (43%) to (44%). Weighted average diluted shares outstanding is expected to be approximately 123 million.
- Full Year FY16 Guidance: Revenue is expected to be in the range of $299 million to $300 million, raised from previous guidance of $295 million to $297 million. Non-GAAP operating margin is expected to be approximately (46%), raised from previous guidance of (47%) to (49%). Weighted average diluted shares outstanding is expected to be approximately 121 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, other special items. While a reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis, Box has provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for its third quarter fiscal 2016 non-GAAP results included in this press release.
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