Box posts first $1 billion fiscal year as AI sales pick up

By Jon Swartz

Box Inc.'s stock rose about 2% after hours Tuesday after the software company reported its first $1 billion fiscal year and announced a $100 million share-buyback program.

"Customers in financial services are upgrading to Box AI," Box Chief Executive Aaron Levie said in an interview, referring to a new suite of capabilities that will integrate advanced AI models into the Box Content Cloud. The company also announced integration with Microsoft Corp.'s (MSFT) Azure OpenAI on Box AI.

"AI and data and content are powering automated work flows like invoice processing and contract details," Levie said.

The company (BOX) reported fiscal fourth-quarter net income of $99.2 million, or 57 cents a share, compared with net income of $20.5 million, or 10 cents a share, in the year-prior quarter. Adjusted earnings were 42 cents a share.

Revenue increased 2% to $262.9 million, from $256.5 million in the same quarter a year ago. Fiscal-year revenue topped $1 billion for the first time.

Analysts surveyed by FactSet had, on average, expected net income of 38 cents a share on revenue of $263.3 million.

Box executives said they anticipate sales of $261 million to $263 million in the current first quarter. Analysts polled by FactSet are expecting $262 million.

Shares of Box have been mostly flat over the past year, while the S&P 500 index SPX is up 27%.

-Jon Swartz

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03-05-24 2016ET

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