Box Inc. reported fiscal second-quarter revenue of $321.1 million, an increase of 9% year-over-year and 11% in constant currency, surpassing Wall Street’s $319.33 million estimate by $1.77 million. Adjusted earnings per share matched forecasts at $0.40.
Billings rose 17% year-over-year to $310 million, while gross margin held steady at 81.2%. Operating income totaled $95 million, with operating margin expanding by 90 basis points to 29.4%. Free cash flow surged 67% to $60 million, and remaining performance obligations grew 15% to $1.7 billion. Cash and investments stood at $446 million at quarter-end.
The company raised its full-year revenue guidance to approximately $1.29 billion, implying 10% growth or 11% in constant currency. Adjusted EPS for the year is now projected at $1.54, with gross margin expected to settle around 80.5% and operating margin near 28%. For the third quarter, Box forecast revenue of about $329 million and adjusted EPS of $0.39, with gross and operating margins both anticipated at 80.5% and 28%, respectively.
Enterprise content platform demand and Box AI adoption drove growth, with Suites customers now accounting for 69% of revenue, up from 63% a year earlier. The number of customers paying at least $100,000 annually increased by 10%. Notable enterprise wins included a multinational investment bank upgrading to Enterprise Advanced and a federal agency expanding seats fourfold while replacing legacy systems.
Box’s market capitalization stood at $4.58 billion, with a trailing 12-month P/E ratio of 51. Shares closed down 1.4% at $33 in regular trading on August 25, though they edged up 0.08% in after-hours trading to $33.03. The stock has traded between $21.34 and $33.88 over the past 52 weeks.
CEO Aaron Levie highlighted the company’s role in enterprise transformation, stating that advanced AI’s utility depends on access to corporate data. CFO Dylan Smith cited record bookings and Box AI adoption as key drivers behind the raised outlook.
