Box Q4 Earnings: Revenue Miss, EPS Beat, Expanded AI Partnership With Microsoft

Box Inc BOX shares are trading higher in Tuesday’s after-hours session on the heels of the company’s quarterly results. Here’s a rundown of the report and a look at what’s driving shares higher after hours.

• Q4 Revenue: $262.88 million, missed estimates of $262.97 million

• Q4 EPS: 42 cents, beat estimates of 38 cents

Total revenues were up 2% on a year-over-year basis. Billings were up 6% in the fourth quarter, coming in at $379.3 million. The remaining performance obligations totaled $1.305 billion as of Jan. 31.

Net cash provided by operating activities was $89.3 million in the fourth quarter. Free cash flow came in at $81.8 million, up 10% year-over-year.

“With advancements in AI, companies are accelerating their adoption of the cloud and transforming how they work with their content,” said Aaron Levie, co-founder and CEO of Box.

“Box is at the center of some of the most important trends in technology history as companies look to digitize and automate their businesses, accelerate innovation with the power of AI and protect their most important data.”

Outlook: Box sees first-quarter revenue in the range of $261 million to $263 million versus estimates of $260.96 million. The company expects fiscal-year 2025 revenue to be between $1.08 billion and $1.085 billion versus estimates of $1.088 billion.

Box anticipates first-quarter adjusted earnings of 35 cents to 36 cents per share versus estimates of 38 cents per share. The company anticipates fiscal-year 2025 adjusted earnings of $1.53 to $1.57 per share versus estimates of $1.70 per share.

AI Partnership: In a separate press release, Box announced an expanded partnership with Microsoft Corp MSFT, which appears to be the main reason shares are trading higher after the close.

Box said its new integration with Microsoft Azure OpenAI Service will bring its advanced large language models to Box AI, enabling Box customers to benefit from the most advanced AI models in the world. Box AI will be generally available to customers on Enterprise Plus plans, starting Tuesday.

“Our collaboration with Microsoft spans well over a decade, and has spurred innovation throughout previous technology shifts, including cloud and mobile computing,” said Ben Kus, chief technology officer at Box.

“Now, in this new era of AI, we are expanding our collaboration again to bring AI to enterprises without compromising data security, privacy, compliance, and governance.”

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BOX Price Action: Box shares were up 6.90% after hours at $29.13 at the time of writing, according to Benzinga Pro.

This illustration was generated using artificial intelligence via MidJourney.