Box Inc. 10-Q: Q2 Financials & Key Metrics

TL;DR

BOX Q2 10-Q filed. Revenue, expenses, and debt details out.

AI Summary

Box Inc. filed its 10-Q for the period ending July 31, 2024, reporting on its second quarter financial performance. The filing details various financial activities, including changes in paid-in capital, accumulated other comprehensive income, and expenses related to general and administrative, selling and marketing, and research and development. It also references debt instruments and equity incentives, with specific dates like July 31, 2024, and February 1, 2024, being prominent.

Why It Matters

This filing provides investors with a detailed look at Box Inc.'s financial health and operational expenses during the second quarter, crucial for understanding the company's performance and future outlook.

Risk Assessment

Risk Level: medium — The filing mentions credit concentration risk with significant customers, indicating potential exposure to a few key clients.

Key Numbers

• 2024-07-31 — Period End Date (Reporting period for the 10-Q filing.)
• 2024-02-01 — Quarter Start Date (Beginning of the reporting quarter for various financial metrics.)
• 2023-07-31 — Prior Year Period End (Reference point for year-over-year comparisons.)
• 2024-05-01 — Current Quarter Start (Start date for specific expense categories like G&A and S&M.)
• 2023-05-01 — Prior Year Quarter Start (Start date for R&D expenses in the prior year's comparable quarter.)

Key Players & Entities

• BOX INC (company) — Filer
• 0000950170-24-102328 (other) — Accession Number
• 20240731 (date) — Period of Report
• 20240830 (date) — Filing Date
• 900 JEFFERSON AVE (other) — Business Address
• REDWOOD CITY (other) — Business City
• CA (other) — Business State
• 94063 (other) — Business Zip Code
• us-gaap:AdditionalPaidInCapitalMember (other) — Financial Metric
• us-gaap:AccumulatedOtherComprehensiveIncomeMember (other) — Financial Metric

FAQ

Key Financial Figures

• $0.0001 — hich registered Class A Common Stock, $0.0001 par value per share BOX New York S

Filing Documents

• box-20240731.htm (10-Q) — 2291KB
• box-ex31_1.htm (EX-31.1) — 16KB
• box-ex31_2.htm (EX-31.2) — 16KB
• box-ex32_1.htm (EX-32.1) — 12KB
• 0000950170-24-102328.txt ( ) — 7593KB
• box-20240731.xsd (EX-101.SCH) — 1083KB
• box-20240731_htm.xml (XML) — 1054KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Page Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 5 Condensed Consolidated Balance Sheets as of July 31, 2024 and January 31, 2024 5 Condensed Consolidated Statements of Operations for the Three and Six Months Ended July 31, 2024 and 2023 6 Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended July 31, 2024 and 2023 7 Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Deficit for the Three and Six Months Ended July 31, 2024 and 2023 8 Condensed Consolidated Statements of Cash Flows for the Six Months Ended July 31, 2024 and 2023 10 Notes to Condensed Consolidated Financial Statements 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 32 Item 4.

Controls and Procedures

Controls and Procedures 33

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 34 Item 1A.

Risk Factors

Risk Factors 34 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 59 Item 5. Other Information 59 Item 6. Exhibits 60

Signatures

Signatures 61 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about: our future financial and operating results; including expectations regarding revenue, deferred revenue, billings, remaining performance obligations, gross margins, operating income, and net retention rate; our ability to maintain an adequate rate of revenue and billings growth and our expectations regarding such growth; our market opportunity, business plan and ability to effectively manage our growth; the effects of global economic conditions on our business and the impact of foreign exchange rates on our business; our ability to maintain profitability and expand or maintain positive cash flow; our ability to achieve our long-term and short-term gross and operating margin objectives; our ability to grow our remaining performance obligations; our expectations regarding our revenue mix; our ability to maintain, protect and enhance our brand and intellectual property; costs associated with defending intellectual property infringement and other claims and the frequency of such

— FINANC IAL INFORMATION

PART I — FINANC IAL INFORMATION

Financ ial Statements

Item 1. Financ ial Statements BOX, INC. CONDENSED CONSOLIDA TED BALANCE SHEETS (In thousands, except per share data) (Unaudited) July 31, January 31, 2024 2024 ASSETS Current assets: Cash and cash equivalents $ 406,620 $ 383,742 Short-term investments 75,605 96,948 Accounts receivable, net 177,487 281,487 Deferred commissions 43,516 45,817 Other current assets 30,431 34,186 Total current assets 733,659 842,180 Operating lease right-of-use assets, net 88,453 99,354 Goodwill 76,773 76,750 Deferred commissions, non-current 58,464 63,541 Deferred tax assets 73,411 75,665 Other long-term assets 89,978 83,673 Total assets $ 1,120,738 $ 1,241,163 LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable, accrued expenses and other current liabilities $ 44,076 $ 52,737 Accrued compensation and benefits 33,189 36,872 Operating lease liabilities 25,662 26,812 Deferred revenue 483,987 562,859 Total current liabilities 586,914 679,280 Debt, net, non-current 371,824 370,822 Operating lease liabilities, non-current 82,173 94,165 Other liabilities, non-current 26,081 35,863 Total liabilities 1,066,992 1,180,130 Commitments and contingencies (Note 5) Series A convertible preferred stock, par value of $ 0.0001 per share; 500 shares authorized, issued and outstanding as of July 31 and January 31, 2024 493,145 492,095 Stockholders' deficit: Class A common stock, par value $ 0.0001 per share; 1,000,000 shares authorized; 143,228 shares and 144,353 shares issued and outstanding as of July 31 and January 31, 2024, respectively 14 14 Additional paid-in capital 740,292 785,374 Accumulated other comprehensive loss ( 10,659 ) ( 9,686 ) Accumulated deficit ( 1,169,046 ) ( 1,206,764 ) Total stockholders' deficit ( 439,399 ) ( 431,062 )

View Full Filing

View this 10-Q filing on SEC EDGAR