Summary
Box closed fiscal 2024 with fourth quarter revenue of $262.9 million, up 2.5% from the prior-year quarter. Fiscal year revenue reached $1.04 billion, up 4.7%. Gross profit was $200.2 million in the quarter, up 2.4%, and gross margin was 76.1%, flat year over year. Operating income was $21.2 million, up 7.4%, and operating margin was 8.1%, up 0.4 percentage points. Net income was $99.2 million, up 383.4%, helped by an income tax benefit from the release of a valuation allowance on deferred tax assets. For the full fiscal year, net income was $129.0 million, up 381.8%, and diluted EPS was $0.67, up 1016.7%.
The company generated $89.3 million in operating cash flow in the quarter, down 3.1% year over year. Fiscal year operating cash flow was $318.7 million, up 7.0%. Non-GAAP free cash flow was $81.8 million in the quarter, up 10%, and $269.0 million for the fiscal year, up 13%. Deferred revenue stood at $586.9 million, up 3.6%. Remaining performance obligations were $1.30 billion, up 8.3% from the prior year. Capital expenditures were $0.24 million in the quarter and $4.70 million for the fiscal year, down 6.6%.
Operationally, Box made several product moves. Box AI became generally available to customers on Enterprise Plus plans, and the company announced an integration with Microsoft Azure OpenAI. Box acquired Crooze in December 2023 to add no-code enterprise content management applications. It also launched a Box app for Apple Vision Pro and added FDA 21 CFR Part 11 compliance support for Box Sign. The Suites attach rate was 78% in deals over $100,000 for fiscal 2024, up from 72% a year earlier. Box had over 100,000 paying organizations as of January 31, 2024. Net retention rate was 101%, down from 108% and 111% in the prior two fiscal years. Management attributed the decline to heightened budget scrutiny, pressure on seat expansion, and increased customer churn.
Guidance for the first quarter of fiscal 2025 calls for revenue growth of 4% at the high end of the range, or 7% on a constant currency basis. Non-GAAP operating margin is expected to be approximately 25%, and non-GAAP diluted net income per share is expected to be $0.35 to $0.36. For full fiscal 2025, revenue growth is guided to 5% at the high end of the range, or 6% on a constant currency basis, with non-GAAP operating margin of approximately 27% and non-GAAP diluted net income per share of $1.53 to $1.57. The full-year non-GAAP EPS guidance includes a negative impact of $0.10 from unfavorable exchange rates and $0.06 from deferred tax expenses in international countries. The first-quarter non-GAAP EPS guidance includes a negative impact of $0.04 from exchange rates and $0.02 from deferred tax expenses.
Risks remain tied to foreign exchange and macro conditions. Approximately one third of revenue is generated outside the U.S., and about 60% of that is in Japanese Yen. Box expects foreign exchange to be a 170 basis point headwind to full fiscal 2025 revenue growth, 70 basis points higher than previous expectations. The company also expects foreign exchange to be a headwind of slightly more than 100 basis points to full fiscal 2025 operating margin. Other risks include tighter IT budgets, longer sales cycles, competition, security vulnerabilities, and the integration of acquisitions. On March 4, 2024, the Board authorized a $100 million expansion of the stock repurchase program, bringing total authorized repurchases to $163.7 million through March 4, 2025. During fiscal 2024, Box repurchased 6.6 million shares at a weighted average price of $27.01 for $177.0 million, leaving $63.7 million available as of January 31, 2024.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $262.9M | $261.5M | +0.5% | $256.5M | +2.5% |
| Gross profit | $200.2M | $192.3M | +4.1% | $195.5M | +2.4% |
| Gross margin | 76.1% | 73.5% | +2.6 pp | 76.2% | -0.1 pp |
| Research & development | $61.9M | $61.0M | +1.4% | $60.7M | +1.9% |
| Sales & marketing | $85.9M | $87.9M | -2.3% | $83.3M | +3.1% |
| General & administrative | $31.2M | $32.0M | -2.4% | $31.7M | -1.6% |
| Total operating expenses | $179.0M | $180.9M | -1.1% | $175.8M | +1.8% |
| Operating income (loss) | $21.2M | $11.4M | +86.0% | $19.7M | +7.4% |
| Operating margin | 8.1% | 4.3% | +3.7 pp | 7.7% | +0.4 pp |
| Net income (loss) | $99.2M | $10.7M | +831.3% | $20.5M | +383.4% |
| Net margin | 37.8% | 4.1% | +33.7 pp | 8.0% | +29.8 pp |
| Diluted EPS | $0.57 | $0.04 | +$0.53 | $0.10 | +$0.47 |
| Net retention rate | 101.0% | 102.0% | -1.0 pp | 108.0% | -7.0 pp |
Risks
Challenging macroeconomic conditions, including inflation, higher interest rates, a stronger dollar, and geopolitical conflicts, have driven additional customer scrutiny on larger deals, lower seat expansion rates, increased churn, and delayed sales cycles. MD&A notes the net retention rate declined to approximately 101% as of January 31, 2024 from 108% as of January 31, 2023.
Disruptive generative AI may fundamentally alter the cloud content management market through reduced customer demand and increased costs. Box AI and Box Hubs depend on third-party AI services, and unavailability, regulation, litigation, or higher computing costs could harm adoption and margins.
The cloud content management market remains fragmented, rapidly evolving, and highly competitive, with primary competitors including Microsoft SharePoint and OneDrive, Google Drive, OpenText, and Dropbox. Competitors may bundle lower-cost or free products, creating pricing pressure and risk of lower margins.
The business depends on customers renewing subscriptions and expanding usage, and the net retention rate was approximately 101% as of January 31, 2024, down from 108% as of January 31, 2023. Heightened budget scrutiny on seat expansion and increased customer churn may continue to pressure renewal and expansion revenue.
Increasing focus on enterprise and highly regulated customers may lengthen and increase the cost of sales, require greater customer education and customization, and create greater pricing pressure and implementation challenges. These factors could delay revenue recognition and strain sales support resources.
Fluctuations in the U.S. dollar against foreign currencies, particularly the Japanese Yen and to a lesser extent the British pound and Euro, negatively affected results for the year ended January 31, 2024. RPO growth was partially offset by a negative impact of 240 basis points from foreign currency exchange rates, and revenue growth was negatively impacted by 260 basis points.
The platform stores large amounts of sensitive customer data, and the incorporation of AI technologies may create additional cybersecurity risks. Geopolitical tensions heighten the risk of nation-state and affiliated actor attacks, and actual or perceived breaches could lead to liability, indemnity claims, lost customers, and service credits.
Privacy and data protection laws, including GDPR, CCPA, CPRA, and evolving cross-border transfer frameworks, impose significant compliance obligations and potential penalties of up to the greater of 20 million Euros or four percent of global revenue. New and changing U.S. state and international privacy laws may increase costs and require changes to data handling practices.
Growth depends on key employees and highly skilled personnel, including an expanding direct sales force. The hybrid workforce and increased hiring in lower cost regions such as Poland and the Netherlands may cause disruptions, decreased productivity, or delays in product development.
The $345.0 million convertible senior notes mature on January 15, 2026, and the company has elected to settle principal in cash upon conversion. If conversion conditions are satisfied, the carrying value may be reclassified to current, materially reducing reported working capital, and failure to pay could cause defaults under other indebtedness.
The Series A Convertible Preferred Stock has liquidation preference, cumulative dividends at 3.0% per annum, redemption rights after the seventh anniversary, and KKR board designation and consent rights. These obligations could impact liquidity, reduce cash available for other purposes, and limit additional financing options.
Responding to activist shareholders can be costly and time-consuming, disrupt operations, and divert management attention. The company previously incurred a costly proxy contest in 2021, and perceived instability from shareholder activism could harm sales, recruiting, and employee retention.
SaaS KPIs
All quarters →Billings
Net Retention Rate
Non-GAAP Operating Margin
Remaining Performance Obligations (RPO)
Non-GAAP Free Cash Flow
Paying Organizations
Summary, forecast, risks and KPIs are extracted from BOX INC's SEC filings for Q4 FY2024 (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 Oct 2, 2026.