Box, Inc. (BOX) Q1 FY27: Revenue Growth of 11% YoY — Positive Momentum

Box, Inc. (NYSE:BOX) reported its financial results for the first quarter of fiscal year 2027, revealing a revenue of $306 million, which represents an increase of $30.7 million or 11% year-over-year. This growth is a positive indicator for shareholders, as it demonstrates the company's ability to expand its market presence and capitalize on the increasing demand for its Intelligent Content Management platform.

Key Financial Metrics

• Revenue: $306 million, up $30.7 million or 11% YoY
• Remaining Performance Obligations (RPO): $1.6 billion, up $175 million or 12% YoY
• Billings: $255.4 million, up $13.1 million or 5% YoY
• GAAP Operating Margin: 9%
• Non-GAAP Operating Margin: 27.7%
• GAAP Net Income Per Share: $0.08, compared to $0.02 in the prior year
• Non-GAAP Net Income Per Share: $0.37, compared to $0.30 in the prior year
• Net Cash Provided by Operating Activities: $140.2 million, up $13.1 million or 10% YoY
• Non-GAAP Free Cash Flow: $127.7 million, up $9.5 million or 8% YoY

Analyst Opinion

This quarter's results are encouraging for shareholders, as Box not only achieved revenue growth but also improved its profitability metrics significantly. The increase in both GAAP and non-GAAP net income per share indicates that the company is effectively managing its costs while driving revenue growth. The non-GAAP operating margin of 27.7% reflects strong operational efficiency, which is a positive sign for future profitability.

The company also reported a 12% increase in remaining performance obligations, which suggests a robust pipeline of future revenue. This is particularly important as it indicates that Box is successfully retaining and expanding its customer base, especially with the adoption of its Enterprise Advanced and Box AI solutions.

Shareholder Returns and Guidance

In the first quarter of fiscal year 2027, Box repurchased 4.8 million shares for approximately $114 million. As of April 30, 2026, the company has approximately $445 million of buyback capacity remaining under its current share repurchase plan. This commitment to returning capital to shareholders is a positive signal and reflects management's confidence in the company's future prospects.

Looking ahead, Box has provided guidance for the second quarter of FY27, expecting revenue to be approximately $319 million, which would represent a 9% increase year-over-year. The company anticipates a GAAP operating margin of approximately 10% and a non-GAAP operating margin of approximately 28.5%. Additionally, GAAP net income per share is expected to be around $0.11, while non-GAAP diluted net income per share is projected at $0.39.

Forward Catalysts

Investors should keep an eye on Box's continued innovation in AI and content management solutions, as well as the adoption rates of its new products. The company's recent announcements regarding the Box Agent and Box Automate solutions are expected to drive further customer engagement and revenue growth. Additionally, the impact of foreign exchange rates on future earnings will be a critical factor to monitor, given that approximately 35% of Box's revenue is generated outside the U.S.

In summary, Box's first quarter results for FY27 reflect a strong start to the year, with significant revenue growth and improved profitability metrics. The company's ongoing commitment to shareholder returns and its strategic focus on AI-driven solutions position it well for continued success in the upcoming quarters.

BOX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Data) (Unaudited)

Note: All amounts are in thousands.

Three Months Ended	April 30, 2026	April 30, 2025
Revenue	$305,941	$276,272
Cost of revenue (1)	62,735	60,673
Gross profit	243,206	215,599
Operating expenses:
Research and development (1)	75,913	72,301
Sales and marketing (1)	101,870	99,099
General and administrative (1)	37,981	37,861
Total operating expenses	215,764	209,261
Income from operations	27,442	6,338
Interest income	2,986	6,698
Interest expense	(2,401)	(2,696)
Other (expense) income, net	(518)	2,804
Income before income taxes	27,509	13,144
Provision for income taxes	9,783	4,950
Net income	$17,726	$8,194
Accretion and dividend on series A	(4,230)	(4,228)
Undistributed earnings attributable to	(1,587)	(451)
Net income attributable to common	$11,909	$3,515
Net income per share attributable to common stockholders	Basic: $0.09	Basic: $0.02
	Diluted: $0.08	Diluted: $0.02
Weighted-average shares used to compute net income per share attributable to common stockholders	Basic: 139,150	Basic: 144,434
	Diluted: 140,139	Diluted: 149,614
(1) Includes stock-based compensation expense as follows:
Cost of revenue	$5,940	$4,832
Research and development	19,374	18,806
Sales and marketing	18,631	17,867
General and administrative	12,368	13,389
Total stock-based compensation	$56,313	$54,894

BOX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands) (Unaudited)

Note: All amounts are in thousands.

ASSETS	April 30, 2026	January 31, 2026
Cash and cash equivalents	$378,836	$375,130
Short-term investments	98,207	102,932
Accounts receivable, net	192,343	325,136
Deferred commissions	44,191	46,102
Other current assets	51,986	41,973
Total current assets	765,563	891,273
Operating lease right-of-use assets, net	108,790	97,626
Goodwill	81,723	82,290
Deferred tax assets	275,015	283,997
Intangible assets, net	98,615	94,311
Other assets, non-current	91,942	96,563
Total assets	$1,421,648	$1,546,060
LIABILITIES, CONVERTIBLE PREFERRED STOCK
Accounts payable, accrued expenses and other current liabilities	$86,256	$96,983
Accrued compensation and benefits	31,495	57,791
Deferred revenue	599,277	647,893
Total current liabilities	717,028	802,667
Debt, net, non-current	451,610	451,011
Operating lease liabilities, non-current	79,249	76,970
Other liabilities, non-current	15,265	18,314
Total liabilities	1,263,152	1,348,962
Series A convertible preferred stock	496,857	496,376
Stockholders’ deficit:
Common stock	14	14
Additional paid-in capital	492,811	547,610
Accumulated other comprehensive loss	(2,152)	(142)
Accumulated deficit	(829,034)	(846,760)
Total stockholders’ deficit	(338,361)	(299,278)
Total liabilities, convertible preferred stock and stockholders’ deficit	$1,421,648	$1,546,060

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