Box shares surge 11% on strong Q1 earnings, upbeat guidance

Published 27/05/2025, 21:22
© Reuters

Investing.com -- Box Inc. (NYSE:BOX) shares soared 11.7% in after-hours trading Tuesday after the cloud content management company reported better-than-expected first quarter earnings and provided upbeat guidance for the current quarter and full fiscal year.

Box posted adjusted earnings per share of $0.30 for the first quarter ended April 30, beating analyst estimates of $0.26. Revenue rose 4% year-over-year to $276 million, slightly above the consensus forecast of $275.09 million.

The company’s outlook exceeded Wall Street expectations. For the second quarter, Box projects adjusted EPS of $0.30-$0.31 on revenue of $290-291 million, above analyst estimates of $0.28 EPS and $284 million in revenue. For the full fiscal year 2026, Box forecasts adjusted EPS of $1.22-$1.26 on revenue of $1.165-1.17 billion, topping consensus projections of $1.19 EPS and $1.15 billion in revenue.

"We achieved robust first-quarter results, surpassing our guidance and delivering double-digit growth in both billings and short-term RPO," said Dylan Smith, co-founder and CFO of Box.

The company reported billings of $242.3 million, up 27% YoY. Remaining performance obligations (RPO) grew 21% to $1.469 billion.

Box’s non-GAAP operating margin came in at 25.3% for the quarter. The company generated free cash flow of $118.3 million, down 4% from the prior year.

CEO Aaron Levie highlighted Box’s AI initiatives, stating, "We help businesses unlock value from their unstructured data with our Intelligent Content Management platform. Earlier this month, we unveiled our largest set of AI innovation yet, including new AI Agents that integrate with the leading models and software platforms to accelerate decision-making, automate workflows, and boost productivity."

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