Box Billings Growth Reaccelerates After a Slow Quarter
Second-quarter billings reached $309.5 million, up 17%, after 5% growth in the prior quarter, as remaining performance obligations rose to $1.7 billion.
Box, Inc. (BOX), the Intelligent Content Management platform, reported second-quarter fiscal 2027 revenue of $321.1 million, up 9% from a year earlier, or 11% on a constant-currency basis, for the quarter ended July 31, 2026.
The year-over-year rate slowed from 11% in the first quarter, when revenue was $305.9 million. Co-founder and CFO Dylan Smith said revenue, billings and operating margin all exceeded the company’s expectations.
Billings were the sharper turn. They rose 17% to $309.5 million, or 16% in constant currency, after 5% growth in the prior quarter. Remaining performance obligations were $1.7 billion, up 15%, or 17% in constant currency. Short-term RPO was $904.7 million and long-term RPO was $787.0 million. Smith said net retention improved to 106% and that Enterprise Advanced constant-currency revenue growth accelerated for a fifth consecutive quarter.
GAAP operating income was a record $32.6 million, or 10.2% of revenue, after 9.0% in the first quarter. Non-GAAP operating income was $94.5 million, or 29.4% of revenue. GAAP diluted earnings were $0.09 a share, compared with $0.05 a year earlier; non-GAAP diluted earnings were $0.40 a share, compared with $0.33. Both included a $0.04 hit from unfavorable foreign-exchange rates.
GAAP gross profit was $254.0 million, or 79.1% of revenue. Non-GAAP gross profit was $260.7 million, or 81.2% of revenue. Net cash from operations was $70.8 million, up 54%. Non-GAAP free cash flow was $59.7 million, up 67%.
Cash and cash equivalents were $342.9 million and short-term investments were $101.3 million at July 31. Box repurchased 2.6 million shares for about $66 million in the quarter; roughly $378 million of buyback capacity remained.
The company delivered wins or expansions with Toyota Motor Corporation, Hasbro, Piper Sandler Companies, Argenx, Novartis, the California Department of Justice, Red Hat and Siemens, among others. It announced security features for AI agents, including agent guardrails, third-party agent oversight and prompt-injection detection, expanded Box Zones in Switzerland, Israel and Singapore, and listed early support for Anthropic, Google, OpenAI and Meta models.
For the third quarter of fiscal 2027, Box expects revenue of approximately $329 million, up 9% year-over-year, or 11% in constant currency, including an expected headwind of about 170 basis points from foreign exchange. GAAP operating margin is expected at about 10.0% and non-GAAP operating margin at about 28.0%, including an expected 80-basis-point FX headwind. GAAP net income is expected at about $0.12 a share and non-GAAP diluted net income at about $0.39 a share. Weighted-average diluted shares are expected at about 142 million.
For full-year fiscal 2027, the company expects revenue of approximately $1.290 billion, up 10% year-over-year, or 11% in constant currency, with an expected 100-basis-point FX headwind. GAAP operating margin is expected at about 9.5% and non-GAAP operating margin at about 28.0%. GAAP net income is expected at about $0.38 a share and non-GAAP diluted net income at about $1.54 a share. Weighted-average diluted shares are expected at about 141 million.
About 35% of revenue is generated outside the United States, of which about 70% is in Japanese yen. Guidance assumes present exchange rates.