Q2 2025 Box Inc Earnings Call Transcript
Key Points
- Box Inc (BOX) delivered strong second-quarter results with revenue growth of 3% year over year, or 6% in constant currency, and a record gross margin of 81.6%.
- The company saw accelerated billings growth of 10% year over year and a 12% increase in remaining performance obligations (RPO), indicating strong customer demand.
- Box Inc (BOX) continues to expand its market opportunity with the acquisition of Alphamoon's AI-powered Intelligent Document Processing technology, enhancing its Intelligent Content Management platform.
- The company reported a record operating margin of 28.4%, up 360 basis points from the previous year, demonstrating effective operational discipline.
- Box Inc (BOX) is experiencing strong adoption of its Enterprise Plus suite, with 87% of deals over $100,000 including this offering, up from 78% a year ago.
- Box Inc (BOX) continues to face macroeconomic pressures, particularly in the SMB segment and certain regional markets.
- The company is experiencing relatively stable seat growth, with continued pressure on overall seat expansion rates.
- Despite strong performance, Box Inc (BOX) is not yet generating revenue from its FedRAMP high compliance efforts, which could impact future federal government opportunities.
- The company's guidance includes a negative impact from foreign exchange rates, affecting both revenue and operating margins.
- Box Inc (BOX) is still working to improve its net retention rate, which, while improved to 102%, indicates room for further enhancement.
Ladies and gentlemen, good afternoon, and thank you for standing by. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Box, Incorporated second-quarter fiscal 2025 earnings conference call. (Operator Instructions)
Thank you, and I would now like to turn the conference over to Cynthia Hiponia, Vice President of Investor Relations. You may begin.
Good afternoon, and welcome to Box second quarter fiscal 2025 earnings conference call. I'm Cynthia Hiponia, Vice President, Investor Relations. On the call today, we have Aaron Levie, Box Co-Founder and CEO; and Dylan Smith, Box Co-Founder and CFO. Following our prepared remarks, we will take your questions.
Today's call is being webcast and will be available for replay on our Investor Relations website at boxinvestorrelations.com. Our webcast will be audio only. However, supplemental slides are now available for download from our website. We'll also post the highlights of
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