BOX - Earnings call transcript Q1 2025

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Operator

Hello. Thank you for standing by, and welcome to the Box, Inc.

First Quarter Fiscal 2025 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Cynthia Hiponia, Vice President, Investor Relations.

You may begin.

Cynthia Hiponia

to Quarter welcome Conference XXXX and Call. afternoon, Box's Fiscal First Earnings Good Vice Investor Cynthia President, I'm Hiponia, Relations.

Co-Founder call Levie, CEO; Box Box the Co-Founder CFO. On today, and and we Dylan have Aaron and Smith,

we Following and Investor webcast be Relations will our also prepared take questions. is will on Today's replay for your available website. being call our remarks,

webcast be audio will only. Our

call, achieve rates, to our cause products, on However, statements we'll or handle expectations and pricing capital margins the second the remaining market highlight post website. release strategies, future known reflect refer stock. These materially. including the We'll supplemental ability benefits slides savings expectations and and new currently risk filed also statements, to we factors customers, our the and forward-looking ability based actual events environment are rates Commission, leverage made earnings making the opportunity, on our today, our margins, future at revenue the on now and quarter best and call. for and for and impact including to from May differ gross full cost materially and today's year or results operating be us, available of periods, These press results; our factors XXXX recent from deliver Please currency regarding forward-looking adoption or and the file may our call fiscal of and statements including planned profitability, financial disclaim repurchase we and And of guidance our of partnerships; market for obligations, our revise and and as enterprise documents targets; model our foreign @boxincir. On of performance our our our growth for obligation date. our to future billings information investments, including platform the models operating cease impact to performance update offerings flow, in allocation margins, this they download our to to annual on free our XXXX. today Securities cash earnings risks timing net from our any our X and XX, the and financial Form strategies; our operating XXXX uncertainties exchange should regarding operating may and other size the operating judgment change on them retention statements are results of product with address business revenue, being XX-K actual challenges differ our that be up on potential and most made the this Exchange common report macro to of

be as In our financial GAAP These should not addition, during substitute call, will measures. measures financial in discuss for to results. non-GAAP in or a addition non-GAAP today's our we considered isolation from

website. are over additional to find be press Investor the our Unless slides, with all non-GAAP can financial measures, otherwise disclosures results and regarding supplemental basis. With release including on found You in related turn which these Relations me page our to earnings comparable reconciliations can the a references that, Aaron. the in on indicated, call let GAAP measures of non-GAAP

Aaron Levie

Thank joining everyone, you, today. for us Cynthia, and thanks,

a of have guidance. to growth delivered We and revenue are year-over-year includes basis. operating X% constant pleased first currency our above on quarter This results X%

profitability, on from XX%, a strong of focus which points in XXX margins to operating resulted basis year addition ago. In a up

our we with in we FX that are to experience pleased quarter. guidance, overall updated execution While were the in continue in reflected headwinds

enable choosing chapter transformation. last Demand and by have AI Box to AI Box, is since was with for to this we we AI. Plus upcoming driven of working. momentum defined in capabilities rolled intelligent to As last continued we call, AI to that to order shared by platform which seen customers in And ways earnings advanced are in saw more an customers Plus new Enterprise We in access our QX, upgrade as one a grow. Enterprise out Box Box we for number customers Box gain year, of to AI our continues a increasing

saw in In central a than fact, we QX wins the meaningful QX. AI in by revenue Box win to was increase where in

to a to security Plus Customer to Box for client include patterns firm examples QX real identify access upgraded additional central functionality. Enterprise Box and marketing a location content AI content. A leading value will AI Box the moved generating and that company their commerce along extract to to gain AI are as with bring be They security analysis across they looking access leases in using in and estate in and addition to that e-sign together Hubs from commercial Enterprise Plus content enterprise-grade Box with unstructured that provides. controls client global to Box to

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business this can a data. costly and approaches collaboration traditional our important into can it AI, latest With value disruption it's by unsecured, anyone the and in complex the to will to our better of ECM automate structure and to ask and against is from can fragmented Box finally document nearly of content often letting protect landscape. of systems continued full that our all we strategy too insights is this is our and these tap breakthroughs to and with content data traditional information. But do maintain driving can't enterprise content. we our the questions Not only content of extracting we to most content-centric processes lead legacy within the This that We our also impossible the This management AI management accelerate. uniquely opportunity silos. managing to leverage positioned

We this momentum and the content are highlight of and of opportunity. and QX our wins management leading potential sheer size intelligent the era

into content focused content most where workflow Box. are organization Box content in secure in intelligence value automation put Hubs for beta, building means years. publishing, collaboration vision most. And Box their viewers it into it way Plus of deliver in right the with to AI-enabled work innovation. Starting intelligent workflow lives teammates curated we need companies To in file in with all several to across Content collaborate This hands rolling the power the from era processes, in to and towards ask also that insights been Cloud business Hub release of you Our Enterprise of the seconds. for simplify and no with can tapping AI with can get that and can lens or customers, mid-May, the AI are X of beta we've platform, documents and Hubs on data of right areas out answers in when Box a portals matter this on type and the the delivers multiple an they transforming a customers single questions new the in the content with collaboration intelligent the distribute creation, content Hubs, provides Box of we through AI-enabled how and organization. full

cases to Once clinical content is in and their enterprise, document on contract content, trial of in Importantly, types enterprises from and management why provides this enterprise. around any This large be can digital invoice workflow Box retrieval we automate have to cases we application content-centric AI, of together be augmented AI to and for instant a natively groups instantly content large an that can compliance to how our this are Crooze use customers Crooze's compliance, federal support year integrate box introduced a later High We'll December coming throughout the in the Shield back data Box features 'XX. Across archiving aggressively Box. use are government. acquired advanced features these workloads security and no-code FY around and share critical native on are expand more building soon generation metadata able way no you we asset solution from in almost you to accomplish security, technologies working in FedRAMP deliver code. With within working processing new to to number expand extract the levels powering and will and management. metadata with management enabled metadata like

ServiceNow open our to support AI the of to Teams, on ServiceNow's integrations applications. To technologies, demonstrate We customers' Microsoft highlight platform, our further product. are doubling deeper XXXX content custom-built at keynote, Salesforce, Microsoft platform IBM's as Slack, of Now the repository our also value and a down with their Copilot, Knowledge Assist Box highlighted power

providers. well Box platform and be providing forward, SaaS AI to for unstructured is the Going positioned data to

most models a the securely content AI The in Finally, connects we leading abstraction advanced to to platform Box critical Box working AI within Box AI platform. is Box. are the AI layer deliver with that

maintaining platform such for the tool use permissions while model their built management systems all for Our AI Box embedding, and Box. documents handles of agnostic AI of services within Box many within AI content apps, and for AI Box, access bring to them as to back-end augmented the our of respecting AI retrieval developers agents security a set secret seamlessly and sauce content, vector first-party that this more. Instead processing use we've enterprises out disparate for generation, to is inherent

is of can power that content. platform core AI we our a quickly part any Box the bring model of to Importantly,

a privacy already release. In QX, we the integration unleash brought new NVIDIA, various also together to Box Hubs leverage AI can compliance easily its of and in to enterprise-grade GPT-Xo launched for instance, unstructured models Azure standards which OpenAI, NIM micro how have Microsoft after security, a with Microsoft's technology announced within QX internally capabilities And our working For customers more improve AI. just part with and we can week Box Box NVIDIA's newly with Box's and value of AI as partnership and within their content. Box services,

switching Now gears go-to-market. to

March are our As bring Financial value to to we our outlined all leveraging our engine focused on go-to-market we of Day, in of Box the Analyst full customers.

the comprising adoption brings continued Intelligent our over suite the We deals QX, sales see deals now deals across solid multiproduct in rates our in our to full Plus our XX% Plus, of Cloud $XXX,XXX that XX% over successful large geographies. of be in value all We suite saw attach of to customers. In of with the well QX. Enterprise large suites continued offering Enterprise to Content Box

prevent in leading a gen Box, compliance Enterprise platform demand auditable meeting platform signed deal and HR with them our QX a global attacks will while service records to management, content Box also off pharmaceutical records. And full medical device unexpected expanded the and allow to to that leaks with upsell for a include we their X-figure strategy. data for of Shield. To prevent wins Plus and secure modernize to new ransomware expansions platform. This content plus Box who Enterprise company Our and their have centralize to this bring the core year, moving to to in information enterprise records, customer a ECM value will customers, technology legacy company Japan our efforts. They leverage Plus GXP important an broadcast purchased build for our customer

continuing connect AI are We CIO our events and global other events.

within key all new we to more integrators. this and workflows customers introducing offerings larger driving in customers are partnership We environment help throughout year And with ECM powering deals their system our are Box. modernize with

key partners. wins For across instance, the and focus key critical industries number with of QX, a help large of in saw with customers support we

and We are world. unstructured movement an enterprises organizations center industry. at AI, businesses a role Box the major in is moment the exploded, With in has of data within at important as and of the most the this

is success was Companies Fortune #XX our that the in work Box recognized in a platform, globally. I'm #XX recently our to as Magazine XXX ago. only course, do year strategy the Of drives not For what the by but our XXXX, from and proud our Work Boxers up Best

to for to for how Our And decades look on mission Dylan. the hand at defining let period with as Box a company, world power we back together. a is works this work off come. And will to how it was that, shaped as me

Dylan Smith

Thanks, bookings Good end disciplined you high for X% long-term strong $XXX,XXX revenue annually. our constant returns. In currency, and X,XXX and capital margins, paying joining than priorities Box shareholder today. delivered operating We X% optimize once year-over-year was Aaron. in a again currency. approximately have strong to in driven expanding to key QX afternoon, strategy allocation guidance, executing us delivered on total we customers growth our was everyone, million for $XXX by thank quarter accelerating linearity. of drive us the financial as a up constant profitable This now growth, we QX, of above more revenue and

QX revenue, watermark in significantly customers for and our improvement was now of XX% strong Our year. of up ago. a deals Suite from high new XX% year in attach QX account XX% a Suites from in rate a XX% last large

in for remaining or we're mentioned, We and RPO, $X.X Aaron year-over-year performance which a key capabilities, currency. has Box a demand our As obligations, this advanced ended seeing catalyst of for strong with been QX adoption. billion, X% suite accelerating AI or X% increase constant more

FX year-over-year was the roughly guidance. XXX our XX% had year-over-year down next were RPO billings X% constant $XXX X% to our in our months. QX for XX of when expectations basis billings over of an up were higher recognize points currency. headwind anticipated million in with in expect line QX and than that We adjusting we

XXX%, results. consistent Our was last quarter's for QX net retention rate with

at full X%, churn product stable continued remained our with demonstrating rate customers. Our annualized strong and stickiness

above guidance net of We gross XX% gross XX% continue rate up retention exiting our reported time slightly margins. at points this represents or we've and margin to anticipate came at the year-over-year FY with XX.X%, 'XX in basis a XXX above roughly first level. QX and

business. QX we margin As cloud, up basis of fully rate growth time. QX in our basis demonstrating the an we realize XX% income by public our to expect up infrastructure running headwind gross we revenue of QX, deliver leverage generating million over roughly In was up XX.X% margin X% efficiencies our of operating year-over-year million, basis delivered operating continue XXX points. of $XX commitment gross FX to expansion year-over-year, once was to exceeding $XXX the XXX points the profit additional year-over-year, across points. again XXX absorbing despite of

in Our expense disciplined operating generate additional model. our continuing to is leverage to management approach

of $X.XX. I'll $X.XX negative high As a of of generation guidance QX free and X% our the $X.XX approximately cash a generated flow result, above in from EPS flow cash delivered This QX, we year-over-year. of operations cash million, sheet. $XXX up had In of includes from increase balance of end million, a from we year. QX, FX flow $XXX $X.XX. to of year-over-year now our XX% last result strong We exceptionally and well up turn impact

Let's We approximately shares to now with in QX, $XX cash, the investments. and strategy. for restricted we equivalents, capital In turn $XXX million repurchased million. cash ended our allocation approximately quarter cash X.X short-term million

now million capacity opportunistically remain XXX and our We me our shareholders capital XXXX, year of share full repurchase that, we under returning repurchase through to plan. current stock XX, program. With ongoing approximately of to QX turn our had As April remaining our to buyback guidance. let committed

assuming from roughly the generated Japan. the dollar rates. provided U.S. approximately guidance with our U.S. the reminder, of the we of revenue our and exchange Since versus guidance, revenue of impact yen last international headwinds, of expected has As XX% the is outside a strengthened coming X/X includes following current FX

EPS GAAP Additionally, in expenses, and discussed we to quarter, we expect noncash non-GAAP roughly $X.XX impact the year. deferred an that $X.XX tax for of and full the QX represent last to

XXXX. quarter second fiscal of the For

on anticipate headwind currency $XXX to constant points. We range range. the of a revenue X% an billings expect growth includes expected rate in $XXX We in be the to from basis XX FX of mid-single-digit basis. low X% million growth or million, growth to be approximately year-over-year QX QX our representing to This

be flat We gross basis XXX expect representing improvement than QX year-over-year more our of margin roughly sequentially, to a points.

year-over-year This expect We margin a to includes constant improvement currency. non-GAAP represents basis XX%, point our QX which an XXX impact operating to due basis be XXX expected FX. improvement point negative approximately approximately points XXX basis and of a in

the range, QX year-over-year shares absorb diluted in Weighted non-GAAP high average be XX% noncash this I end expect expenses, approximately increase to to the as the a million. our at XXX We $X.XX, mentioned to range we tax be $X.XX deferred of EPS are even expected earlier. of

constant full On versus in a year FX our $X.XX expected $X.XXX XXXX, expectations, in XXX year-over-year billion, of than high we currency previous representing revenue currency and end represents the range. this For from our points, representing XX, This prior ending roughly at headwind an fiscal growth $X of basis, of million January headwind. anticipate basis an the growth basis XX range the approximately X% constant billion a points this X% million to $X increase incremental includes guidance. higher

range we change of as 'XX FY line is to billings This our compared to previous negative impact an FX as-reported headwind, which basis a with be guidance revenue of now an by incremental in roughly low driven on XXX growth. to points X% billings expect We rate with growth the approximately growth single-digit have in approximately expect of our basis.

year-over-year a basis representing We expect of be points. our margin to gross improvement FY roughly XX%, 'XX XXX

our a XXX point basis non-GAAP expect be year-over-year. representing margin 'XX XX%, to to operating improvement continue FY We approximately

basis is our of guidance on an This impact FX a We line XX incremental approximately expect expected XXX FX have in despite roughly from to points. points. of previous guidance margin operating negative basis with headwind

full of ability EPS FY range $X.XX our the $X.XX, due improvement business to 'XX X% raising the in our at to representing to generate are now I average of We end impact the in that to expectations. FX for expenses is as expected the approximately our high as as expected $X.XX increase previous and diluted which in versus to $X.XX of million. We year This headwind non-GAAP expect prior leverage are $X.XX below-the-line the includes this from than expenses. an higher Weighted tax shares deferred income across be previously as the be well our year. an expectations $X.XX, noted expected XXX additional an well EPS range

by We driven investment an out chapter our and exciting new on are in innovation Content a company years Cloud. embarking as of building intelligent

Our to content. us workflow enterprise will business automation and around processes differentiated enable product capabilities AI-driven power

As the of upcoming be questions. the and happy we year, long-term for with fueling Aaron growth. With a growth profitable Operator? new deliver through prepare a disciplined financial we've targeted initiatives I to your go-to-market our later offering built that, be take to launch foundation will strong engine in a strategy outlined. And Aaron that will plan this place,

Operator

[Operator Instructions] Your first question Brian comes from the line Peterson. of

Unknown Analyst

starting verticals get budgets I'm love the there's people for real how you are with curious, I I how but would resonating. mentioned color you do that curious there. AI, any sounds on where thinking targeted about that? it more interest So there's like discussion estate, like there? I'm Any that's broad really is. to off feel know

Aaron Levie

Yes.

-- vertical every it So that see. across say now, we we're seeing right basically would I

things gain to federal others, think around medium way more more stand answer look and verticals, a at relative than workflows. to categories able can AI long to begin I from services, very that where where you content-centric being basis. are sciences, or and maybe unlock automate like there's government, life document over if financial data questions term, typically the verticals, on

we seen the those quarter, upgrades degree high Enterprise across conversations in So in where the really it board. our saw have we in a terms verticals. But of residents in was of Plus

more. -- every I in capabilities I But to it's coming displace are we on out then AI. the vertical would It's budget unlocked for feel it within serve, for spend helping the from Enterprise plan. say of budget. systems. upsells And that of Plus build question, we would still your in legacy saw say coming being now, So largely that of right terms Box are we strong because especially the It's often IT out free

days forward efficiency at I that budget year see a content. think I I that we of line be certainly, drives the up think more could in transformation, business use only you because that you'll or now, looks and AI more really over automation opens AI, time, from look X increased But earliest what process see budget increases if to able maybe cases workflow when even the like. we'll as of that fast we're business AI of drive around that for

Unknown Analyst

the It's to Aaron. constant see or in color, anything curious, the revenue out you'd terms as deal the great environment raised quarter currency. call that in progressed? you I'm demand That's great outlook of guys cycles

Aaron Levie

Yes.

business has strong in macro front, from I stabilization. to past we're to of lack of inflection couple new sort notable our different past but looking in think headwinds, the quarters. We woods think, U.S. that's especially and that's of addition of noted like had we point, Again, quarters, U.S. enterprise performance, federal, as of are of the been of degree couple the the see kind I in business. the some So the enterprise any in we've on of increase out starting sort of

look SMB the in certainly I at think growth throughout the happy on the year. some forward seeing on to we're performance more still QX, we're we business pressure we But look the balance, segment. degree driving when overall, of with and

Operator

from Your the of question comes Pinjalim line Bora. next

Pinjalim Bora

the versus of respect Congrats to to has of queries be the your helpful know gross flip by AI, equation on but of have side? seen side so those of Box the seeing, that early, the Content are of queries side guys. on is those for tracking that volume expectations fared so the it's color margin that you're kind I within the users Hubs cost with made And on quarter, AI. would volume any Aaron, the how far? what you Again, far

Aaron Levie

Yes.

literally as So think, of been note, it in for, Hubs being in beta. maybe I around terms you has X.X weeks,

so X/X queries. getting Hubs now. We're or of data the initial our and of customer And so we're already just driving is cases kind scenarios use AI right early reviewing in. total about

firm a that content the an firm keynotes And two. now that's for that right the real what that's a of into. call, our sales your strong quite as to the create hasn't ask digital have of of at one much can about he the new use is. and just product months in little the becomes to that documentation in it's kind was at because questions gate, really equity or be research of we're bit adopt portal, and where this sales And questions the as are our access of collect a financial for bank a ask you decade terms immediate do unlock vast organization product materials it's of that This all because content. And really, product scale been huge HR out been a been both ask X.X So or of somebody CEO any customers content a anyone of of an memory in enable and, it's kind breakthrough now of kind cases an basically within questions services. I amount because instantly able can there with any to with to able such ago. can just anyone engineering in use as was similarly, we've in cases earnings with hub HR employee on another him anybody investment this tap knowledge and can can commercial your noted,

all employees as your this as is make experienced your knowledgeable just transformational. So employees most to ability of instantaneously

kind more Hub's of going more Did to the really we so I in massive And the the And margin. unlock will use catch to cost enabling customers mention our one that? gross enterprise that plus on something case that think you volume. every Did and certainly think have and a upgrades I for is or you of side? be contribute

Pinjalim Bora

Yes.

Aaron Levie

Yes.

of the expect being generates And with So the AI as to then these fact use as by addition will the margin be or that that I metadata we tend those included the able That to higher or Plus think and driven to to even a gross levels volume Enterprise tier plan in run volume-based lot a margin, for a in we place. higher-tier we've plans, gross higher see first all plans. lot workflow are able our mentioned, of things usage. of really maintain be AI plans customers the high cases, like extraction extremely in not other

structure in so And and that margin delivers volume kind be our we'll the appropriate those goals that us we're that paying the just for -- in of cases, will that margin customers ensure driving on front.

Pinjalim Bora

better. that? doing And What the to linearity was quarter bit Are you Yes. something drove drive a Understood. that sustainable? be One seems could that? in quick follow-up Dylan, little like the for Dylan. different

Dylan Smith

I say significantly wouldn't that anything different. did we

capabilities some about. quarter a that think the into with lot and I of heading of first product just momentum energy we the talked

Plus driven about. by the everything talking a of really around QX demand some Enterprise been has Aaron and So execution continuation of

did the we to quarter, stronger we see, would certainly which than that even had see So a a we expected revenue start lead to mentioned. upside, to that

So sales certainly this as significantly really did wouldn't products like there every I than around. compelling demand to as of repeat point say for anything well just we quarter, that different and time execution. kind but I is to that something we'd would

Operator

of from George the line question comes next Kurosawa. Your

George Kurosawa

Enders. Steve for on I'm

You wanted kind -- competition about with I just of talked to about the ask legacy ECM providers.

maybe win augment proposition. Have of you relative talked in kind seen your rates helping of about opportunities? value so as kind any of far number You the further AI there change or

Aaron Levie

use opens number increase well Definitely look us. at a customers. up When full as deals of ECM, cases an in we for ECM takeouts expansion Crooze that the new directionally acquisition of both as

all extraction together So this our is And in offering, with that metadata in higher integrated we're that as have AI the of tier year, some is and moving definitely direction. our natively anticipating. a packages trend a that we capabilities positive more Crooze throughout roll we this then

see out rethink trend further I to few that very you an an environments. to be becoming just even that of out ready be systems. But catalyst AI management certainly, I at documents I going data millions and on architecturally, And ECM legacy think, will would increasing in represents, way, AI really the and another defining think momentum customers good impossible certainly their content given is because, the the past quarters. if store, taking it quarter in in in catalysts there. a call the content just for millions that legacy of there's you'll to this having again, that near a chance take look complexity just And it's advantage

So to a breakthrough modern AI is us we this to really think catalyze ECM systems. of use to further movement for even huge

George Kurosawa

Awesome. a That's And then to follow-up. great hear.

of the that focus thinking ecosystem your that's renewed You the called you shifted your and been deepened look this of kind partner partnerships just how of have needle seen few partner move. out on ecosystem a your where kind on kind of or maybe and Maybe about talk enhanced you by at can you've AI. biggest

Aaron Levie

Yes.

just I'll X share maybe So categories.

them themselves models model there's agnostic categories. them. models X for partner -- now, best just customers choose effectively architecture is partnering foundation AI works model right of and and there's we have us. -- so AI which And opportunities due -- letting of realistically delivering models. represent AI -- to for probably number all anticipate model the fantastic then the we of You first And But that actually leading our really these a approach, are kind with providers open the our

those an having to But by accounts. certainly extension, incentive by in model we providers platform, that with for and grow more open it us have means working

with we the world, the IBMs so this opportunities work for Googles they customers of in think new world, of of need represents And models front the to world the great of really their the Amazons others get workloads. mission-critical the and to as

of partner kind So that's category. one

applications easily really these AI thrive access category sort Copilot AI-ready in assistance these way. the having use if and sort cases, or whether to cases by all products about assistant use of partner of that about Another all -- very or you SaaS usable a are is these of terms of hear of in AI data they think you

have and products can corporate connect we And useful certainly within data and of these that legacy the Again, managing seamlessly than relatively so or leading any a of the of more seamlessly. incredibly into way mission-critical AI for is of platforms portion AI very one we significant infrastructure. context kind architecture

our content the can of where types the really a that ask represents And can architecture unstructured embed And opening to connects as more of highlighted a number similarly Box integrators really any piece be down of was secure document also within to with around use is of, expanded talks really and ServiceNow was where in have into plug Microsoft can content product. We Copilot a connect questions list data, capabilities AI example of data that of product copilot. kind Microsoft products. to platform of to into demo Box access you platform. deeply this a or in really or you their AI-ready platform management partners this that of or go then those AI up needs so as other an for is just scalable in the that a a data set platform having that connect our partnership systems. And us finally, Assist we system to of software of kind their the And sort cases

AI conversations a using becomes Box for with provider, their So relevant, a for component capabilities. an leading platform and instance, vertical increasingly where extraction very we've SaaS had metadata important

of platform, be our processing. up in leg embedded AI type that's SaaS a because gives technology BXBXC the where BXBXB really will it through another document or environment So them sort

a spending a are or each nearly almost from on customers new categories time for those us. standpoint, cases of the opportunities of few that we're for partnership use in growth So terms of which is net

that And organized and front. lot we're certainly traction couple on against a those the over you'll opportunities So see of now. think next I of then continued quarters right years,

Operator

comes line of Your the Josh from next Baer. question

Josh Baer

AI, for this agents. in of into and for the One units Aaron, see are one agent does going the from followed to Box future your cost a fit of work potential cost Aaron that and Dylan. work? the for AI respect? How insights I've we What quick of around Box AI

Aaron Levie

Yes.

this come follows Box an AI excited set instructions that, layer and announcements at tools that -- And connects that abstraction So use it that am you when Box. to interact about it and about our as that created to content there's But this an when high model then you that space. probably of model, because unbelievably with. we that prompts effectively within tell, obviously the have a can prospect. in I in level think effectively platform it still can within you talks keep I'll model, relatively a we platform, to give AI AI AI

to the vector of being do tools able is embeddings. One

sort being enterprise tool to do able created. we've is our the that effectively service enhance rag of Another

So be or human ask use a do. to to to would this effectively gets go question AI a that document something AI you advance, any just all task model of models has that the what AI really extract you'll capabilities think case talking hub complexity, or experiences set as powerful abstracted specific has and a and platform to worry continue advance, deploy tools, your it that and have AI that continue the able a about to within content maybe instruction, an is metadata. Where is, a these any as around user if agent about set a doesn't across like does gets of summarize are a agent in of otherwise prompt AI effectively they our extremely that

in process. everybody has they and for to from or management asset someone a a metadata then today, a the asset and pull looks digital human digital where the route contract So and that some contract at labels asset workflows digital they their kind a reads of human that contract out organization

the within then it as manage up Box. within you processes as workflows and tooling to were of will, AI and tie we're things effectively it So organize And the box let the effectively do that go for you. and AI platform, that all AI you'll agents labor to administrate and within building and have business those Box environment

way be Box that we basically are that do at model able today today And of to and work mental unstructured or into of, questions tied content or in going advanced contextualized with AI work. business necessarily data go to kind have automated our is data of and that any go process. kind things. do you you take is we vast So extremely of the an that that is of possible. that to data think the those about building majority if of can best ask layer where corporate make that to of an scaffolding, look possible future, is standpoint. And and is exciting It's all that for services in XX% from abstraction not the becomes do you sort secured that not highly let is the us not platform to is content, AI And and

up kind And your that's open in cases for we wide we process was we're labor-intensive, to go today, where are what too in that the IDP going deploy department don't the what or number we complex have of use go AI. and so solve, or every see -- potential to to organization, too just as automation the enterprise a and of RPA traditional across

when content our for of to that them basically, they delivering and is cloud a deploy that intelligent going thinks set AI, customer is securely. what their think against is eye capabilities an content content be end-to-end to platform So

So does that answer the question?

Josh Baer

FY the interesting. that clarification. 'XX? Really on million, constant change out the moving What currency as guidance with and like by the basis, just or the increased about as a for guidance details And FY for one Yes, revenue billings currency perfect. all the just the any 'XX far parts. guidance appreciate in change Dylan, change constant breaking then, $X Really on

Dylan Smith

Yes.

currency a on are with consistent expectations our really, So basis. our initial constant guidance

we we land kind a that's were at expecting that single-digit revenue reported as-reported incremental in our coming about in growth the of what what standpoint, XXX with an X%. point line about basis, talked constant of basis low as expectations currency of expect. But range there, new So roughly From now and FX. of on kind still that's from that time to headwind because the had

Operator

Your next Iwanyc. the from comes George question of line

George Iwanyc

but AI you're start I'll box maybe products Hubs, how platform? this broadly Box and Aaron, like give really you perspective the Suite's on and Box across driving you and Relay some adoption, the Sign and that's momentum. seeing with context Box the other Box Can in of us

Aaron Levie

Yes.

new Enterprise So plan Plus purchased, time, gets use of obviously, value for a number in propositions cases that every customers. general, our and opens up

of version relay. advanced Our e-sign capabilities, most our advanced

customers. some that had and we we more QX, seeing notable for open wins. are up certainly stickiness And so value more

a be in of Sign kind pharmaceutical transactions. their sign's major customer Box will processes, will instance, adopting For space, Sign that a company the for that company validation for Box using automotive major be critical

life and that that and is streamlined again, of content the whole So all kind from you final when you experience. our of content, vision implement in that intelligent create really is governing one to Content Boxes the to get then moment entire Cloud, transaction ingest cycle data you of

to in now much customers make are because AI, you whether in sure to organization, so or role from about they platform major really is a think the possible. for the value And or overall. or of their again, And job enterprise, their it in workflow represents the as value collaboration catalyst as just is our content of getting AI, of that e-signature come you're full seeing

George Iwanyc

question expanding you're Can on investing, Dylan, your And generation. of comments on kind marketing in sales give organization for organization? you're of one kind how you where to focus you're us you. related what a Maybe the investing and demand putting investing,

Dylan Smith

Sure.

both us past are couple the CIO-focused gen, really would field down demand it kind the So combination back of of to highlighted in of well kind been prepared of kind events that some kind really scaling over really, a it on lot to programs for that of quarters. growth programs so kind I Aaron spend his online those comes working the call a of that of remarks, doubling of of lot a and of and initiatives have

interest newer especially seeing the of we from and and really out, with coming kind now exciting So products all have demand strong customers there. that

So about. that's that talked It's and straight gen. Also out partner we category. kind building demand investing ecosystem of one that

kind demand then And those kind set our channels. of the will SIs at and of same reach to of well, and for just that So foundation. our growth be of strengthening through growing us time, commensurate with seeing the overall laying sales especially we're of that with as kind force some we the and up kind

as we're ready opportunity. to advantage of take the So new we be products able that do have to

of the really year. we So that's high-level categories kind this focused on that

Operator

from line next the Jaluria. comes question Your of Rishi

Rishi Jaluria

you do us stock to is I workforce. those have the workforce. give especially more in global buying for talked I of you've wanting Poland. specifically instead measured. more kind on X an Maybe hiring that your how cash that Number the about can workforce know of one, sure to outside help of shares, is shifting the dilution. point? And us with understand you're away that and instead buying know why cash. alongside of years then that, it's the of XX% on right than what stock of U.S., us understand update as outside cash actually there's guess, It's it this issuing faster into I maybe walk taking near back growing of of strategy U.S. not both just of offsetting takes maybe through, the and a is necessarily now to revenue. revenue. at more But Maybe lot puts back SPC case? your than then But from stock I and I'm workforce is compensation percentage that's strategy I the and relates

Dylan Smith

Sure.

the strategy, on I've where on employees than results really, first workforce Poland, ground year the notably one, that with of really been this past by ended terms pleased location in most So seen our XXX in we there. the more we've

and more more of little engineering the workforce our includes into and teens, of that team. XX% quickly of our kind a than than XX% moving So

to relates the increase that then of has -- for note we're functions, to just a the expect that mix I majority kind focus of making continue overall where couple And primary our of of as it in hires percentage also G&A maybe a of significant example, compensation, well. R&D time. And as the that been, would things. to over hiring the the where that's but Poland, stock-based the So we're lot

shares of in program running also even that the reduced with actually, First have repurchase outstanding overall time, now, we've we been couple the share over same kind of At bringing independent place that's years all, for of burn rate. down we total of time. a the equity robust

shares SBC very same are have that kind basis. The is on seen a that of very, strong actually net of combination issuing has kind reason fewer we a path, of retention. followed year-on-year So we not yet --

So share and comes to largely down low attrition a higher price.

we've So percentage the of in and overall burn our a of stock-based put and just years. But we've as expect it's revenue lagging follow more indicator trend down same the a come of equity bit seen into that that practices rate compensation a as total shares little of last place outstanding, over like couple would to we well. time

Operator

turn This Cynthia remarks. for closing call to question-and-answer session. the will concludes I the

Cynthia Hiponia

look updating call. next earnings for everyone, our again Great. we you and Thank joining to on today, us you, forward

Operator

joining. for you Thank conference. today's concludes This

You lines. may your now disconnect

Box (BOX) 28 May 242025 Q1 Earnings call transcript