Box beats Wall Street expectations for Q3, delivers $224 million in revenue
Cloud content management firm Box published its official third-quarter financial results on Tuesday, beating market expectations.
Non-GAAP net income per share came to 22 cents on revenue of $224 million, up 14% year-over-year. Analysts were expecting earnings of 21 cents per share on revenue of $218.6 million.
Box's net retention rate came to 109%, up from 106% in Q2.
The remaining performance obligations came to $948.1 million, up 25% year-over-year. Billings for the third quarter were $231.5 million, a 25% increase year-over-year.
"In addition to our solid financial and customer metrics, we made meaningful product announcements in the third quarter, including the rollout of Box Sign globally, new malware deep scan capability in Box Shield to combat ransomware, and deeper integrations with Microsoft Office and Teams, Salesforce, Slack and Zoom," says Aaron Levie, co-founder and CEO of Box.
Free cash flow in the third quarter was positive $31.2 million. This compares to a free cash flow of positive $26.2 million in the third quarter of FY21.
For the fourth quarter, Box expects revenue to be in the range of $227 million to $229 million. For the full fiscal year 2022, revenue is expected to be in the range of $868 million to $870 million.
The company has been embroiled in a bitter dispute with activist investors at hedge fund Starboard Value LP. Starboard owns an 8.4% stake in Box.
Box's Q2 results in August came ahead of the company's annual shareholder meeting on Sep. 9, when board members re-elected Levie as well as directors Peter Leav and Dana Evan to the company's 10-member board. Earlier this year, Starboard nominated four directors to Box's 10-person board, arguing that Box hasn't aggressively capitalized on the enterprise trends driven by the COVID-19 pandemic.