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Box Q2 revenue slightly beats estimates on enterprise advanced adoption

Box Q2 revenue slightly beats estimates on enterprise advanced adoption


Overview

  • US content management platform's preliminary Q2 revenue rose 9%, a slight beat of analyst expectations

  • Adjusted EPS for preliminary Q2 was in line with analyst expectations

  • Company repurchased 2.6 mln shares for $66 mln during the quarter


Outlook

  • Box expects Q3 revenue of $329 mln, up 9% yr-over-yr, including FX headwinds

  • Company sees full-year FY27 revenue at $1.29 bln, up 10%, including FX headwinds

  • Box expects full-year non-GAAP EPS of $1.54, including $0.09 FX headwind


Result Drivers

  • ENTERPRISE ADVANCED ADOPTION - Co said rapid adoption of Enterprise Advanced offering was a key driver of growth, with revenue in constant currency accelerating for a fifth consecutive qtr

  • CUSTOMER EXPANSIONS - Co cited wins or expansions with organizations across industries including automotive, financial services, legal, life sciences, public sector and technology

  • AI AND SECURITY FEATURES - Co pointed to new security capabilities and AI integrations as supporting product momentum


Company press release: ID:nBw2KKfcla


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Slight Beat*

$321.1 mln

$319.33 mln (8 Analysts)

Q2 Adjusted EPS

Meet

$0.40

$0.40 (9 Analysts)

Q2 Adjusted Operating income

$94.5 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Box Inc is $32.50, about 2.9% below its August 24 closing price of $33.47

  • The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 14 three months ago


Reuters Recommended Reads

  • Aug 25 - Intuit's annual forecast falls short of estimates as it prioritizes customer growth

  • Aug 25 - Canada's Tribe Q2 revenue rises on recurring software and services rev growth

  • Aug 25 - Google expands Gemini Enterprise AI platform for law firms, lawyers


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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