Box reported better-than-expected second quarter results with revenue growth of 3% due to currency fluctuations and an improvement in remaining performance obligations (RPO) and billings. Box also raised its outlook for the third quarter.
The company reported second quarter earnings of 10 cents a share (44 cents a share non-GAAP) on revenue of $270 million, up 3% from a year ago. Wall Street was expecting Box to report non-GAAP earnings of 41 cents a share on revenue of $269.2 million. A third of Box's revenue is generated outside the US and 60% of that business is in Japanese Yen. In constant currency, Box's revenue growth would have been 6%.
As for the outlook, Box projected third quarter revenue between $274 million to $276 million with non-GAAP earnings of 41 cents a share to 42 cents a share. For the third quarter, analysts were modeling Box to report non-GAAP earnings of 39 cents a share on revenue of $270.72 million.
Box also said it repurchased 3.9 million shares for $102 million. The company said it is allocating another $100 million to the stock buyback effort.
For fiscal 2025, Box said revenue will be between $1.086 billion to $1.09 billion, up 5% from a year ago. Non-GAAP earnings will be between $1.64 a share to $1.66 a share.
In a statement, Box CEO Aaron Levie said the company's Box AI and acquisition of Alphamoon means the company can address more use cases. "The Box Intelligent Content Cloud can now support more use-cases across the enterprise than traditional ECM, dramatically expanding our market opportunity," he said.
Box recently named Tricia Gelman CMO of Box. Gelman had been a marketing executive at Salesforce and Adobe.
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