Box Inc. reported second-quarter fiscal 2027 results on August 25, showing revenue of $321 million, a 9% increase year-over-year or 11% on a constant-currency basis. The company posted billings of $310 million, up 17% year-over-year or 16% in constant currency, marking the fifth consecutive quarter of accelerating growth in constant currency.
Foreign exchange headwinds reduced revenue growth by approximately 200 basis points during the quarter. Remaining performance obligations totaled $1.7 billion at quarter-end, up 15% year-over-year or 17% in constant currency, with long-term RPO increasing 18% reported or 22% in constant currency. Net retention rate expanded to 106%, up from 103% a year earlier, while 69% of revenue came from bundled product offerings, compared with 63% in the prior-year period.
The company added 10% more customers paying at least $100,000 annually year-over-year. Non-GAAP operating margin reached 29.4%, an increase of 90 basis points despite a 100 basis point FX headwind, while non-GAAP gross margin came in at 81.2%, down 20 basis points from the prior year due to a 30 basis point FX impact. Free cash flow rose 67% year-over-year to approximately $60 million, and operating cash flow increased 54% to $71 million.
Box repurchased about 2.6 million shares of Class A common stock for $66.4 million during the quarter, leaving approximately $378 million in remaining board-approved buyback capacity as of July 31. Cash, cash equivalents, restricted cash, and short-term investments totaled approximately $446 million at quarter-end.
For the third quarter ending October 31, Box guided to revenue of approximately $329 million, representing 9% year-over-year growth or 11% in constant currency, with an estimated 170 basis point FX headwind. Non-GAAP operating margin is expected at approximately 28.0%, with non-GAAP diluted EPS around $0.39.
The company raised its full-year fiscal 2027 revenue guidance by $10 million to approximately $1.29 billion, now projecting 10% reported growth or 11% in constant currency. Full-year non-GAAP operating margin is maintained at approximately 28.0%, with non-GAAP diluted EPS expected at around $1.54. Management estimates a 100 basis point headwind to revenue growth and an 80 basis point impact on both GAAP and non-GAAP operating margins from foreign exchange.
Management highlighted the company's role in enterprise AI integration, describing Box as positioned at the center of the transformation in how enterprises work.
