Summary
Box, known for its cloud content management platform, continues to gain momentum, reporting robust growth figures in FY2018 Q2. Revenue for the first half of FY2018 reached $240.2 million, marking a 29% year-over-year increase. This growth can be attributed to the expansion within existing customers and the acquisition of new ones, driven by a strategic focus on enhancing business functionality.
The company recorded $139.5 million in billings for the quarter, illustrating a healthy 31% growth from the previous year. This was buoyed by larger deployments and expansions within its customer base. Notably, their Free Cash Flow stood at a negative $14.7 million, reflecting the company's ongoing investment in infrastructure and sales resources to support future growth.
Box's retention rate at period end was 113%, holding steady from the previous year’s figures and indicative of a strong commitment to maintaining customer satisfaction and repeat business. Their robust retention metrics complement their strategy of driving recurring revenue through subscription-based services.
Despite the strong topline growth, Box is still operating at a loss, posting a GAAP net loss of $39.3 million for the quarter. This is not unexpected given their business model, which incurs significant initial costs associated with customer acquisition that outpace immediate revenue.
Looking ahead, Box is poised to further capitalize on the demand for secure content collaboration tools across enterprises. Their international revenue segment has also grown, now comprising 21% of total revenue, up from 17% last year, which points to an effective global market penetration strategy. However, profitability remains a key challenge as they continue to expand and scale operations.
In the absence of specific guidance numbers, the overall trajectory for Box seems positive, underpinned by solid KPIs like billings growth and retention rates. Yet, the financial focus should remain on balancing growth ambitions with the path to sustainable profitability.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2018 | Q1 FY2018 | QoQ | Q2 FY2017 | YoY |
|---|---|---|---|---|---|
| Revenue | $122.9M | $117.2M | +4.9% | $95.7M | +28.4% |
| Gross profit | $90.2M | $84.5M | +6.7% | $68.1M | +32.4% |
| Gross margin | 73.3% | 72.1% | +1.3 pp | 71.2% | +2.2 pp |
| Research & development | $34.0M | $33.5M | +1.5% | $28.3M | +20.4% |
| Sales & marketing | $73.3M | $70.7M | +3.7% | $60.2M | +21.7% |
| General & administrative | $21.8M | $20.3M | +7.7% | $17.6M | +24.3% |
| Total operating expenses | $129.2M | $124.5M | +3.8% | $106.0M | +21.8% |
| Operating income (loss) | -$39.0M | -$40.0M | +2.5% | -$37.9M | -2.8% |
| Operating margin | -31.7% | -34.1% | +2.4 pp | -39.6% | +7.9 pp |
| Net income (loss) | -$39.3M | -$40.1M | +2.0% | -$38.1M | -3.1% |
| Net margin | -31.9% | -34.2% | +2.3 pp | -39.8% | +7.9 pp |
SaaS KPIs
All quarters →Billings
Free Cash Flow
Retention Rate
Summary, forecast, risks and KPIs are extracted from BOX INC's SEC filings for Q2 FY2018 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Aug 4, 2026.