Bubble or no bubble, this is the best stock for AI exposure: analyst
Box, Inc. (NYSE:BOX) reported third-quarter revenue of $301.1 million, exceeding analyst estimates of $297.46 million, while adjusted earnings per share came in at $0.31, slightly below the expected $0.32. The company’s shares fell 11.5% following the results.
Revenue grew 9% YoY, or 8% on a constant currency basis, as enterprises increasingly adopt Box’s AI-powered Intelligent Content Management platform. Remaining performance obligations reached $1.5 billion, up 18% from the previous year.
"Our strong third quarter performance proves how quickly enterprises are embracing Box as their AI-powered Intelligent Content Management platform," said Aaron Levie, co-founder and CEO of Box. "Enterprises want one platform that brings together security, compliance, collaboration and AI."
The company achieved a non-GAAP operating margin of 28.6% and generated $61.4 million in free cash flow, up 7% YoY. Box also announced a $150 million expansion of its stock repurchase program after buying back 2.4 million shares for approximately $77 million during the quarter.
"Box AI and Enterprise Advanced adoption are driving consistent price per seat increases and seat expansion, resulting in an improvement in our Q3 net retention rate to 104%," said Dylan Smith, co-founder and CFO of Box.
For the fourth quarter, Box expects revenue of approximately $304 million, representing 9% growth YoY, and adjusted EPS of $0.33. The company maintained its full-year revenue guidance of approximately $1.175 billion, up 8% from the previous year.
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