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On Wednesday, JPMorgan analyst Pinjalim Bora increased the price target on Box, Inc. (NYSE:BOX) to $39 from the previous $37, while keeping an Overweight rating on the shares. According to InvestingPro data, analyst targets for BOX range from $21 to $40, with the company currently trading at $31.45 and showing a PEG ratio of just 0.22, indicating attractive valuation relative to growth. The adjustment follows Box’s reported performance, which showed calculated billings growth of 27% year-over-year (y/y) in USD, surpassing the consensus estimate of 13% y/y growth. The growth in constant currency (CC) was 17% y/y, described as one of the most significant beats versus guidance in recent quarters.
The company’s billings growth benefited from early renewals, but even after normalizing for this, the figures exceeded guidance and showed an acceleration from the previous quarter. This growth was attributed to strong demand for Box’s Enterprise Advanced SKU and AI offerings. With an impressive gross profit margin of 79.08% and revenue growth of 5.05% over the last twelve months, Box demonstrates strong operational efficiency. InvestingPro analysis reveals 8 additional key insights about Box’s performance and valuation metrics. Additionally, remaining performance obligations (RPO) and current RPO (cRPO) both grew by 17% and approximately 10% y/y in CC, respectively, indicating an upward trend.
Box’s revenue for the quarter was reported to be in line with expectations, while pro forma earnings per share (PF EPS) exceeded forecasts. The dollar-based net retention rate (DBNRR) remained consistent at 102%, and gross retention was stable at 93%. Despite these positive indicators, Box’s management has incorporated a degree of caution into its second-half guidance due to macroeconomic uncertainties, adjusting its billings growth outlook in CC, though maintaining its revenue growth forecast.
Bora highlighted the positive aspects of Box’s first quarter, including the successful adoption of its bundled offerings and the potential for AI to generate significant consumption-based revenue as Box’s content-driven workflows become more integrated into broader enterprise systems. The only concern noted was the lowered billings growth guidance for the fiscal year, which may raise questions about demand in the second half. However, Bora suggests this could also be seen as a conservative stance that might allow for potential outperformance later in the year. Looking ahead, JPMorgan maintains a positive medium-term outlook on Box, recognizing its strategic position in the industry, especially with the integration of Agentic AI. InvestingPro’s comprehensive analysis shows Box maintains a "GOOD" overall financial health score of 2.95, with particularly strong marks in growth and profitability. For detailed insights into Box’s valuation and growth prospects, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Box Inc reported strong financial results for the first quarter of 2025, surpassing analyst expectations. The company achieved a revenue of $276 million, a 4% increase year-over-year, and an earnings per share (EPS) of $0.30, exceeding the forecasted $0.26. Box Inc’s performance has been bolstered by a significant rise in billings, which increased by 27% compared to the previous year. The company also provided a positive outlook for the full year, expecting revenue between $1.165 billion and $1.170 billion, representing a 7% year-over-year growth. In addition to these earnings highlights, Box Inc announced significant updates to its AI product offerings, positioning itself strongly in the AI-driven content management market. The company’s focus on AI has led to strategic partnerships with leading AI model providers, enhancing its competitive edge. Analysts have noted Box Inc’s robust operational execution and strategic initiatives as key factors in its continued growth trajectory.
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