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Financial Analyst Day 2018 The Blueprint for the Future of Work
August 30, 2018
Intro & Safe Harbor
Alice Lopatto, Head of Investor Relations
Financial Analyst Day 2018 The Blueprint for the Future of Work - - PowerPoint PPT Presentation
Financial Analyst Day 2018 The Blueprint for the Future of Work - - PowerPoint PPT Presentation
Financial Analyst Day 2018 The Blueprint for the Future of Work August 30, 2018 Intro & Safe Harbor Alice Lopatto, Head of Investor Relations Box Financial Analyst Day 2018 3 Forward-Looking Statements and Non-GAAP Financial Measures
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3 Box Financial Analyst Day 2018
Forward-Looking Statements and Non-GAAP Financial Measures
This presentation contains forward-looking statements that involve risks and uncertainties, including statements regarding Box’s expectations regarding the size of its market opportunity, the demand for its products, its ability to scale its business and drive operating efficiencies, its ability to achieve its revenue target of $1 billion in the coming years, financial performance upon achieving Box’s long-term target operating model, expectations regarding its ability to achieve profitability on a quarterly or
- ngoing basis, the timing of recent and planned product introductions and enhancements, the short- and long-term success, market adoption, capabilities, and benefits of
such product introductions and enhancements, international expansion, and the success of strategic partnerships, as well as expectations regarding the amount and timing of its revenue, billings, GAAP and non-GAAP earnings per share, the related components of GAAP and non-GAAP earnings per share, and weighted average basic and diluted outstanding share count expectations for Box’s fiscal third quarter and full fiscal year 2019. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: (1) adverse changes in general economic or market conditions; (2) delays or reductions in information technology spending; (3) factors related to Box’s highly competitive market, including but not limited to pricing pressures, industry consolidation, entry of new competitors and new applications and marketing initiatives by Box’s current or future competitors; (4) the development of the cloud content management market; (5) Box’s ability to transition to a solution sales and services focus; (6) Box’s limited operating history, which makes it difficult to predict future results; (7) the risk that Box’s customers do not renew their subscriptions, expand their use of Box’s services, or adopt new products offered by Box; (8) Box’s ability to provide timely and successful enhancements, new features and modifications to its platform and services; (9) actual or perceived security vulnerabilities in Box’s services or any breaches of Box’s security controls; (10) Box’s ability to realize the expected benefits of its third-party partnerships; and (11) changes in the global regulatory landscape. Further information on these and other factors that could affect the forward-looking statements we make in this presentation can be found in the documents that we file with or furnish to the US Securities and Exchange Commission, including Box's most recent Quarterly Report on Form 10-Q filed for the fiscal quarter ended April 30, 2018. You should not rely on any forward-looking statements, and we assume no obligation, nor do we intend, to update them. All information in this presentation is as
- f August 30, 2018. This presentation contains non-GAAP financial measures and key metrics relating to the company's past and expected future performance. You can
find the reconciliation of these measures to the nearest comparable GAAP financial measures in the appendix at the end of this presentation. You can also find information regarding our use of non-GAAP financial measures in our earnings release dated August 28, 2018.
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Agenda
/ The Blueprint for the Digital Workplace
Aaron Levie, Co-Founder and CEO
/ Digital Transformation Brought to Life
A discussion with our customers at Ameriprise, Suntrust and Allstate Jeetu Patel, Chief Product Officer (host)
/ Delivering Cloud Content Management with
Solution Selling Stephanie Carullo, COO
/ Driving Growth and Leverage in the Enterprise
Dylan Smith, Co-Founder and CFO
/ Q&A
Executive Team 12:05 – 12:30 12:30 – 1:15 1:15 – 1:35 1:35 – 2:05 2:05 – 2:30
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The Blueprint for the Digital Workplace
Aaron Levie, Co-Founder and CEO
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Our mission is to power how the world works together
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87K
Customers
69%
Fortune 500
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Marketing campaign collaboration
Streamlined the digital marketing workflow; displaced SharePoint and OneDrive by addressing usability issues and content fragmentation
External and team collaboration
Launched to 22K employees in 200+ countries; used at all levels from exec and board to non-profit missions; eliminated 3-day provisioning lag for external sharing with SharePoint
Mobile productivity
Leveraged Box’s many integrations by deploying Box for EMM with AirWatch for all users globally, securing all content on one, centralized repository
Securing a modern cloud stack
Unified business information across applications and integrated Box with other cloud and on-premise solutions, while meeting security requirements
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Secure collaboration
Transformed speed of sharing content like case evidence across the force, improving productivity, which is especially critical for frontline teams
Moving content to the cloud for GDPR readiness
Met complex GDPR compliance standards by managing and storing content in European data centers with Box Zones
Field operations support
Provided a central online location for CCTV footage, making it easier to search and share valuable evidence without the need to travel to local authorities or manage physical media such as DVDs or USBs
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Internal and external collaboration
Eliminated content sprawl and leveraged Box as a central repository to securely share and collaborate on financial documents, on any device
Modern records management
Reduced compliance risk by leveraging Box Governance, meeting FINRA compliance on retention and archiving
- f documents
Wealth management portal
Improved customer service by creating a customer portal that allows customers to login to their online account and access a secure content vault, seamlessly integrated into their account
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Virtual data room
Leveraged Box to conduct secure M&A, replacing Intralinks, saving on costs while securing sensitive research data
Modern records management
Secured non-regulated content such as lab notebook images for 15K+ users in a HIPAA complaint environment
Sales productivity
Accelerated sales cycles by enabling sales teams to collaborate and access marketing collateral and increase productivity with mobile access anywhere, anytime
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Digital transformation is challenging every
- rganization
Employees expect a digital workplace
- Agile internal and external team collaboration
- Access to information anytime, anywhere on any device
- Support for work across a best-of-breed cloud stack
Businesses need to evolve in the digital age
- Accelerate process across the extended enterprise
- Deliver modern digital experiences for customers
- Automate processes and drive efficiency with AI
Cyber threats and regulations are constantly changing
- Protect the flow of content across the extended enterprise
- Shadow IT creating security and compliance gaps
- Address complicated global regulations (e.g., GDPR)
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How we collaborate and manage information is at the center of digital transformation
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Content fragmentation is holding us back
Custom LOB apps built on IaaS Enterprise content management File shares, email and physical media Consumer file sync and share tools Best-of-breed SaaS apps
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Creating inefficiencies in every business process
Creation Internal collaboration Publishing Archiving External collaboration
Share content with an internal team Share content with partners and vendors Publish to internal and external teams Retain and govern content Kick off process
v1 v1–6, v8 v1 v3 v1–6, v8 v8 v8 v8 v8 v8 v6–8 v6 v6–8 v1–6, v8 v6–8
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What if enterprises had one platform that worked for all of their content and processes?
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Seamless and secure internal and external collaboration Single source of truth of content for best-of-breed apps Automated business workflows across the extended enterprise Advanced ML/AI technologies from all major vendors Security and compliance for every industry and geo without sacrificing simplicity
That’s Cloud Content Management
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Box delivers a unified best-of-breed content experience
Capture Notes Mobile Drive Web Relay
1,400+ integrations Custom apps
Secure client portals Custom digital process Mobile field support Content submission apps
Box apps
Content Metadata Collaboration Workflow Intelligence Zones Policies Compliance Insights Governance KeySafe
APIs
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Box is the recognized leader in content and collaboration
The only vendor with one platform across all content management use cases
Gartner
Content Collaboration Platforms Leader Content Services Platforms Visionary
Forrester
ECM Business Content Services Leader EFSS Platform Cloud Solutions Leader
Nucleus Research
ECM Value Matrix Leader
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The most comprehensive cloud content management platform
OneDrive SharePoint
Individual productivity on any device Team and departmental collaboration Desktop access to content Single mobile experience for users for all use cases Unified search for organization-wide content Links, file info, metadata and policies stay with files Integrations with best-of-breed productivity and SaaS Centrally build, track and manage workflows One view of all internally and externally shared content IT ownership of content by default Centralized audit logs and data for 7 years Site-wide validation for GxP, FINRA, FedRAMP, etc. Platform for custom app and integrations development
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But we’re just getting started
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At BoxWorks, we’re taken this vision even further to go after the $45B+ market for content management and collaboration
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DIGITAL WORKPLACE DIGITAL BUSINESS DIGITAL BUSINESS SECURITY & DATA PROTECTION
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DIGITAL WORKPLACE
Work from any device with first-class user experiences Collaborate securely internally and externally Boost productivity by leveraging best of breed solutions
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Box sits at the center of how people work, so we must integrate deeply into all of the apps our customers use
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Introducing Box for G Suite, now in Beta Docs, Sheets, Slides Gmail Hangouts Chat
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Introducing the all new Activity Stream with Recommended Apps
Unified view of app activity Deep links to your content Personalized app recommendations
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New Activity Stream and Recommended Apps Coming next year Box for G Suite (beta) Available now Box Feed (beta) Available now
DIGITAL WORKPLACE
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DIGITAL BUSINESS
Automate structured and collaborative work across the extended enterprise Capture insights and intelligence from content Deliver engaging new experiences to customers, suppliers and partners
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Transformation requires that we digitize our business processes
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We have a huge opportunity to bring automation to the collaborative work customers do everyday on Box
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Introducing the new Automations and Tasks in Box
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The winners in the digital age will be the companies that extract the most value from their data
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Most of our information is unstructured, and the only way to extract the insights we need at scale is using AI/ML
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Box Skills enables customers to bring intelligence to content
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Skills Kit lets you bring the full power of AI/ML to Box
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DIGITAL BUSINESS
New Automations in Box Coming next year Box Skills Kit GA this December Custom Trained AI Models Coming next year
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SECURITY & DATA PROTECTION
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Implementing security and data protection calls for a different approach in the digital age
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The only way to solve this at scale is understanding the web
- f content access activities across devices and apps
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Introducing Box Shield
Anomaly detection Content firewall Smart access
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We’re delivering the most comprehensive platform for enterprises to manage all their content in the cloud
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The Cloud Content Management Company
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Digital Transformation Brought to Life
A discussion with our customers at Ameriprise, SunTrust and Allstate
Jeetu Patel, Chief Product Officer
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53 Box Financial Analyst Day 2018
Ken Meyer Scott Wilgenbusch Mike Antognoli
Senior Mobile Project Manager Allstate SVP and CTO SunTrust VP, Advisor and Service Technology Ameriprise
Digital Transformation Brought to Life
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Delivering Cloud Content Management with Solution Selling
Stephanie Carullo, Chief Operating Officer, Box
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55 Box Financial Analyst Day 2018
Enterprises are embarking on a digital transformation
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56 Box Financial Analyst Day 2018
Cloud Content Management is the enterprise solution that helps businesses revolutionize how they work
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57 Box Financial Analyst Day 2018
Customers are at the center of our strategy and priorities
Market reach Deep engagements Best of Breed partnerships 87K Customers 69% of Fortune 500
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58 Box Financial Analyst Day 2018
Profiling a Fortune 100 customer
Technology company
$60K
Small teams
$70K
Initial POC
$1.3M $2.4M $3.6M $4.8M $4.8M $5.3M FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Box seats Premier Platform Box ELA Premier Platform Governance Box seats Premier Box seats Premier Platform Box seats Premier Platform Box seats Premier Platform
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59 Box Financial Analyst Day 2018
Box’s evolution to solution selling
Four key pillars to reaccelerating growth
/ ACV / Retention / Reach / Efficiency
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60 Box Financial Analyst Day 2018
/ ACV / Retention / Reach / Efficiency
Box’s evolution to solution selling
Four key pillars to reaccelerating growth
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61 Box Financial Analyst Day 2018
66 85 H1'18 H1'19
$100K+ deals have grown 29% in FY19
+29%
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62 Box Financial Analyst Day 2018
FY19 focus areas driving ACV growth
/ Incentives and goals
Changed commission plans to accelerate new product sales. Added deal thresholds to drive $100K, $500K and $1M deals
/ Pipeline development
Executed new pipeline model focused on deepening customer engagements and generating new logos
/ Sales specialist overlays
Added product specialists to drive deeper use-cases and product add-ons
/ Executive programs
Expanded executive briefings, strategy sessions, and partnership discussions
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63 Box Financial Analyst Day 2018
Product add-ons are a key driver for ACV
62% 58% 68% 73% 71% 70% 27% 28% 29% 40% 42% 49% 0% 10% 20% 30% 40% 50% 60% 70% 80% Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19
Deal Attach Rate
Product Add-on Deal Attach Rate
Product Add-On Attach Rate on Deals $100K+ Product Add-On Attach Rate on Deals $10K - $100K
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64 Box Financial Analyst Day 2018
H1'18 H1'19
Product add-on bookings grew 60% in H1 FY19
+60%
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65 Box Financial Analyst Day 2018
/ ACV / Retention / Reach / Efficiency
Box’s evolution to solution selling
Four key pillars to reaccelerating growth
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66 Box Financial Analyst Day 2018
Driving deep partnerships with customers key to retention
Box Consulting engagements increasing
5,000+ total completed engagements 700+ engagements in H1 FY19 driving implementation, change management, and digital transformation
New offerings in market
Box Transform and Box Shuttle offerings designed to aid customers on their digital transformation journey
10 21
H1'18 H1'19
$100K+ Box Consulting Deals
Structural changes to increase attach rates
Built Box Consulting into FY19 comp plans, and added sales specialists
+110%
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67 Box Financial Analyst Day 2018
/ ACV / Retention / Reach / Efficiency
Box’s evolution to solution selling
Four key pillars to reaccelerating growth
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68 Box Financial Analyst Day 2018
21% 24%
International markets are key growth drivers for Box
Non-US markets now represent 24% of total revenue Q2FY18 Q2FY19
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69 Box Financial Analyst Day 2018
Poised to drive even more growth internationally
New leadership, global product offerings, and strong compliance story lay solid foundation
Japan ANZ EMEA
- Strong performance in 1HFY19
- Strengthened strategic partners
- Multi-zones Japan
- GDPR readiness
- Multi-zones
- BWT London
- New EMEA leader
New Australia leader
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70 Box Financial Analyst Day 2018
Extending reach and differentiation with the partner ecosystem
Differentiation Reach
iWork GoogleCloud Slack Salesforce.com ServiceNow
Tech
Symantec
- kta
DocuSign
SIs
CGI Deloitte Digital Flatirons
High High
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71 Box Financial Analyst Day 2018
Extending reach and differentiation with the partner ecosystem
Differentiation Reach
iWork GoogleCloud Slack Salesforce.com ServiceNow
Tech
Symantec
- kta
DocuSign
SIs
CGI Deloitte Digital AT&T
Resellers
Deutsche Telekom CDW Flatirons
Service Providers
High High
Fujitsu
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72 Box Financial Analyst Day 2018
Extending reach and differentiation with the partner ecosystem
Differentiation Reach
iWork GoogleCloud Slack Salesforce.com ServiceNow
Tech
Symantec
- kta
DocuSign
SIs
CGI Deloitte Digital
Strategic Alliances
Microsoft AT&T IBM
Resellers
Deutsche Telekom CDW Fujitsu Flatirons
Service Providers
High High
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73 Box Financial Analyst Day 2018
Distribution and technology partners are a key growth driver
Extending Box’s reach with partners:
- 40% of bookings influenced by partners
- 32% YoY growth in H1
- SI and ISV drive success with Line of
Business and Industry Solution plays
Extending Box’s differentiation with partners:
- 1400+ integrations
- Native integration with key productivity suites:
O365, G Suite, iWork and Quip
- Box Skills framework is designed to work
with IBM, Microsoft, and Google
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75 Box Financial Analyst Day 2018
/ ACV / Retention / Reach / Efficiency
Box’s evolution to solution selling
Four key pillars to reaccelerating growth
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76 Box Financial Analyst Day 2018
GTM execution continues to drive better S&M efficiency
0% 10% 20% 30% 40% 50% 60% 70% 80% Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19
Sales and Marketing as a % of Revenue
Note: Sales and marketing expenses by type as a percentage of revenue are presented on a non-GAAP basis and exclude stock-based compensation.
Key productivity drivers:
- Pipeline coverage and conversion
- Big deal thresholds
- Product add-on attach rates
- Box Consulting attach rates
- Partner influenced deals
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77 Box Financial Analyst Day 2018
Customers are at the center of our strategy and priorities
Market reach Deep engagements Best of Breed partnerships
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Driving Growth and Leverage in the Enterprise
Dylan Smith, Chief Financial Officer
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79 Box Financial Analyst Day 2018
First Half Fiscal Year 2019 Financial Highlights
1HFY’19 under ASC 606* 1HFY’18 under ASC 605 Y/Y Growth (ASC 606 to ASC 605) Y/Y Growth (ASC 605 to ASC 605)* Revenue $289M $240M 20% 22% Billings $280M $239M 17% 17% Deferred Revenue $302M $241M 25% 27% GAAP EPS** (54¢) (60¢) 7¢ 3¢ Non-GAAP EPS (12¢) (24¢) 12¢ 9¢ Cash Flow from Operations*** $17M ($1M) $18M $18M Free Cash Flow*** ($3M) ($11M) $8M $8M
*
Box adopted the new revenue recognition standard ASC 606 beginning with its fiscal year 2019 using the modified retrospectivetransition method. This presentation includes additional information of financial results for the six months ended July 31, 2018 under ASC 605 for comparison to the prior year. ** Due to rounding, numbers presented may not add up precisely to totals provided. *** Adjusted to reflect the application of ASU 2016-18 Note: Non-GAAP EPS and Free Cash Flow shown on a non-GAAP basis (reconciliations to the GAAP basis can be found in the Appendix of this presentation).
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80 Box Financial Analyst Day 2018
Driving Growth and Leverage in the Enterprise
- Cloud Content Management traction
- Strong customer economics
- Driving leverage
- Path to $1 billion
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81 Box Financial Analyst Day 2018
Driving Growth and Leverage in the Enterprise
- Cloud Content Management traction
- Strong customer economics
- Driving leverage
- Path to $1 billion
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82 Box Financial Analyst Day 2018
30-40% Uplift Per Product
CY 2005—2014 CY 2015 CY 2016 CY 2017 CY 2018
Enterprise File Sync and Share Cloud Content Management
2018 GA
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83 Box Financial Analyst Day 2018
CCM Solution Sales Command Higher Pricing
30% growth in price per seat in 1H vs 2 years ago
Note: Revenue Breakdown as of Q2FY19. Excludes ELAs and Education
$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200
Q1FY'16 Q2FY'16 Q3FY'16 Q4FY'16 Q1FY'17 Q2FY'17 Q3FY'17 Q4FY'17 Q1FY'18 Q2FY'18 Q3FY'18 Q4FY'18 Q1FY'19 Q2FY'19
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84 Box Financial Analyst Day 2018
Higher New Product Attach Rates Driving Higher ACVs
Add-on product attach rates for deals in a quarter
Note: Revenue Breakdown as of Q2FY19
27% 28% 29% 40% 42% 49% 62% 58% 68% 73% 71% 70% 0% 10% 20% 30% 40% 50% 60% 70% 80% Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19
Opp Attach Rate
Product Add-On Attach Rate for $10K - $100K deals Product Add-On Attach Rate for $100K+ deals
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85 Box Financial Analyst Day 2018
Higher New Product Attach Rates Driving Higher ACVs
Cumulative add-on product attach rates
11% 12% 14% 16% 18% 20% 28% 30% 33% 38% 40% 44% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 % of customers with at least 1 add-on product $10K+ Customers $100K+ Customers
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86 Box Financial Analyst Day 2018
Driving Growth and Leverage in the Enterprise
- Cloud Content Management traction
- Strong customer economics
- Driving leverage
- Path to $1 billion
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87 Box Financial Analyst Day 2018
Best-In-Class Net Retention Rate
Higher expansion and lower churn for customers with add-on products
4.5%
Churn2
Product stickiness
1.
Net expansion defined as the net increase in Total Account Value (“TAV”) from our existing customers, who had $5K+ in TAV 12 months ago.
2.
Churn is rounded to the nearest half percentage point.
3.
Net Retention rate defined as the net % of Total Account Value (“TAV”) retained from existing customers, including expansion. This metric is calculated by dividing current TAV of customers who 12 months ago had $5K+ in TAV by their TAV 12 months ago.
12%
Net expansion1
Continued growth within existing customers
108%
Net Retention3
Best-in-class
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88 Box Financial Analyst Day 2018
Land and Expand is Working
Compounding growth across all customer cohorts
1) FY 2013’s lower CAGR due to $3M initial deal with Schneider, Box’s largest deal at the time, causing future upsells to be smaller percentage-wise. 2) FY 2014’s lower CAGR due to 3 customers with initial deals > $1M, causing future upsells to be smaller percentage-wise. Note: Excludes FY12 since it only consisted of Jan 2012 as Box transitioned its fiscal calendar
CAGR Since First Sale
N/A 24% 17% 13%1 23% 33% 30% 20% 11%2
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89 Box Financial Analyst Day 2018
Seat Expansion Driving $1M Sales
Note: Excludes FY12 since it only consisted
- f Jan 2012 as Box transitioned
its fiscal calendar Years with purchase Year the customer exceeded $1M of total contract value
Industry FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Retail & Consumer Goods
4 02 5 4 0 1 2 6 0 8 4 6 8 1 4 2 6 2 6 5 9 1 8 2 3 4 6 8 7 5 2Technology
1 4 4 000 1 4 4 00 2 3 04 00 4 06 08 2 1 9 2 6 00 6 4 8 01 7 5 0000Technology
7 2 4 5 0 3 8 07 00 1 04 5 3 00 5 4 3 9 5 0 1 2 1 07 3 7 . 5Healthcare & Life Sciences
7 7 4 0 3 4 9 4 4 0 5 2 4 1 6 0 2 4 1 9 2 1 2 03 1 9 9 . 9 9 2 5 0000 7 0000Professional Services
5 4 0 1 3 8 3 1 . 2 2 2 1 1 3 9 0. 1 9 1 06 2 9 4 8 9 4 05 4 0 3 5 2 000 2Industrial Goods & Automotive
5 4 0 4 003 5 4 3 4 2 0002 1 2Financial Services
5 4 0 1 08 0 5 2 2 5 4 0 1 05 3 1 8 1 1 9 9 9 6 8 5 . 4 9Financial Services
1 6 9 7 2 8 0 9 9 8 4 0 3 4 5 6 00 5 8 5 001 1 01 1 7 . 7Healthcare & Life Sciences
7 2 6 3 5 7 . 1 7 8 5 3 6 6 5 . 4 3 1 3 2 2 06 . 8 7 7 9 6 4 6 3 . 6 9 1 2Industrial Goods & Automotive
3 9 6 4 8 0 8 4 8 4 00 7 5 5 1 2 0Healthcare & Life Sciences
8 4 00 1 9 3 2 6 0 3 06 0 5 4 0 4 4 4 4 8 0 3 7 4 1 7 7 . 2 7Marketing & Advertising
6 00 1 1 06 . 6 3 1 1 4 5 8 1 0 1 1 9 5 000Healthcare & Life Sciences
1 2 001 8 0 1 9 5 0001Healthcare & Life Sciences
1 2 001 2 0 2 1 5 4 7 4 . 3 8Financial Services
7 3 1 4 01 5 8 5 1 2 2 1 8 3 6 . 4Financial Services
3 4 2 000 1 1 3 3 2 5 1 1 7 08 2 9 0 6 2 4 . 2Public Sector
5 4 0 4 07 2 2 . 1 5 2 1 02 1 00 3 1Industrial Goods & Automotive
1 8 2 8 5 0 2 8 9 8 00 4 3 4 7 00 5 7 9 6 00Industrial Goods & Automotive
1 8 0 1 2 6 9 4 5 3 4 8 8 9 9 . 7 9Financial Services
3 1 5 4 5 5 1 1 5 6 1 6 3 9 . 6 1Industrial Goods & Automotive
2 1 09 6 01 1 1 05 4 8 0Professional Services
1 5 5 0002 1Healthcare & Life Sciences
8 7 9 6 6 1 . 5 8 1 1 7 4 7 6 0. 9 6Technology
5 4 0 3 9 4 009 9 . 7 8 1 3 1 7 . 8 7Public Sector
3 3 5 8 5 7 5 1Industrial Goods & Automotive
2 6 2 7 8 5 5 . 9 7 1Financial Services
2 1 1 2 5 3 8 . 4 5Industrial Goods & Automotive
1 5 6 4 1 9 2 . 6Retail & Consumer Goods
1 4 9 9 6 00 2Financial Services
1 5 05 9 1 9 . 6Industry FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Retail & Consumer Goods
1 6 2 0 5 1 1 2 6 0 4 6 9 003 . 7 6 1 1 06 4 2 7 1 8 9 9 7 8 9 8 3 5Media & Entertainment
3 06 6 4 0 1 6 2 000 2 2 3 02 0 2 8 4 5 2 0 3 008 4 . 3 7 9 00 9 02 5 2 . 8 6Retail & Consumer Goods
2 4 000 3 9 6 0 9 3 2 4 00 7 4 5 2 3 . 7 3 8 3 5 1 02 . 4 7 2 1 06 3 1 . 1 5Professional Services
1 3 2 5 4 0 9 6 000 1 02 8 4 1 . 9 2 1 4 1 07 9 6 6 4 5 3 . 7 8 4 6 3 6 4 5 . 8 8 1 7 8 3 9 4 . 1 1Technology
2 4 9 00 2 9 9 1 7 . 5 9 2 6 9 8 8 . 3 5 8 2 3 2 6 8 . 4 4 2 1 7 1 1Education
6 6 009 0 6 0 1 6 4 3 0 3 6 0Healthcare & Life Sciences
1 1 5 5 00 5 2 09 5 1 . 5 6 01 9 9 3 . 9 6 4 02 06 2 . 4 3 2 7 4 6 9 3 . 1 1Professional Services
1 6 2 0 4 8 4 02 0 6 1 5 3 6 8 . 4 3 7 1 7 7 4 5 7 09 7 6 2 3 7 8 01 . 9 2 4 7 5 8 9 . 5 8Financial Services
3 3 6 0 1 3 6 6 6 4 2 1 02 2 4 5 1 . 3 4Technology
1 1 6 4 0 7 5 9 9 0 6 1 1 6 5 0 8 8 2 6 3 7 2 6 4 8 09 . 8Retail & Consumer Goods
3 4 5 9 0 6 6 8 4 0 1 4 4 6 1 . 2 3 2 7 09 . 6 1 5 9 9 9 8 . 04 9 9 3 2 7 6 . 4 9 6 1 1 2 9 6 . 8Healthcare & Life Sciences
9 2 8 9 . 2 1 9 8 7 2 1 1 2 3 9 9 3 7 5 2 9 2 02 1 05 8 4 3Technology
1 08 0 8 4 0 7 7 3 3 8 0 1 2 6 1 5 09 5 3 3 . 9 3 1 8 9 8 9 3 . 7 7Healthcare & Life Sciences
2 4 4 9 04 2 1 1 9 5 . 7 3Technology
1 008 1 1 2 4 7 6 7 2 1 1 2 02 3 1 1 1 5 9 9 8 1 1 2 00000 8 1 1 2 2 5 00001Financial Services
7 2 0 1 5 9 6 2 7 8 2 6 004 08 7 2 1Healthcare & Life Sciences
3 02 4 00 2 8 6 2 7 2 4 9 2 2 2 8 4 2 3 2 7 0 6 02 5 8 0 7 5 9 09 1 . 2 1 8 0Financial Services
4 5 0 5 3 9 4 1 9 008 0 9 3 8 3 5 9 . 3 2 3 2 8 8 3 6 3 7 9 3 . 4 2 3 00Healthcare & Life Sciences
1 2 00000 9 6 7 3 2 1 1 2 7 7 6 8 0 2 5 5 000Healthcare & Life Sciences
6 4 3 5 . 8 7 6 4 5 . 8 7 2 8 5 6 5 6 . 1 9 1 1 07 000 5 04 000 6 6 7 7 9 0Financial Services
2 9 4 5 4 0 2 8 8 000 4 1 2 8 00 4 4 1 6 01 1 5 5 2 00Media & Entertainment
2 2 6 8 0 8 7 4 1 03 1 6 1 09 3 7 2 1 6 1 7 5 1 8 0. 5 6Technology
1 2 001 7 6 3 8 01 5 7 4 2 01 6 4 1 5 2 2 9 2 4 4 09 6 4 9 7 02 2Industrial Goods & Automotive
7 2 0000 6 3 0000 8 3 3 000Technology
5 6 6 1 0 2 2 5 1 7 0Financial Services
2 2 2 000 3 1 5 000 3 6 5 4 9 1 1 8 1 2 000 1 7 3 8 1 5 . 9 3 1 8 2Technology
2 5 2 0 1 8 6 2 7 4 5 4 9 5 6 0 2 1 07 6 6 5 2 3 4 2 . 08 1 04 9 04 1Professional Services
5 4 0 1 3 2 0 5 8 2 4 08 0 4 3 1 3 06 3 . 9 2 1 9 8 08 7 9 . 3 8 1 1 4 9 7 7 7 . 2 8Energy
3 3 5 05 4 0 4 8 5 000 3 2 5 001 4 1 7 1 2 0 1Healthcare & Life Sciences
1 1 00000 1 2 3 5 2 5 0 3 04 7 5 1 1 0002 1 2 0001 1 5 8 7 08 . 6 5 SLIDE 90
90 Box Financial Analyst Day 2018
New Products Accelerating Initial Deal Sizes
Note: Excludes FY12 since it only consisted
- f Jan 2012 as Box transitioned
its fiscal calendar Years with purchase Year the customer exceeded $1M of total contract value
Sale included new products
Industry FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Retail & Consumer Goods
1 6 2 0 5 1 1 2 6 0 4 6 9 003 . 7 6 1 1 06 4 2 7 1 8 9 9 7 8 9 8 3 5Media & Entertainment
3 06 6 4 0 1 6 2 000 2 2 3 02 0 2 8 4 5 2 0 3 008 4 . 3 7 9 00 9 02 5 2 . 8 6Retail & Consumer Goods
2 4 000 3 9 6 0 9 3 2 4 00 7 4 5 2 3 . 7 3 8 3 5 1 02 . 4 7 2 1 06 3 1 . 1 5Professional Services
1 3 2 5 4 0 9 6 000 1 02 8 4 1 . 9 2 1 4 1 07 9 6 6 4 5 3 . 7 8 4 6 3 6 4 5 . 8 8 1 7 8 3 9 4 . 1 1Technology
2 4 9 00 2 9 9 1 7 . 5 9 2 6 9 8 8 . 3 5 8 2 3 2 6 8 . 4 4 2 1 7 1 1Education
6 6 009 0 6 0 1 6 4 3 0 3 6 0Healthcare & Life Sciences
1 1 5 5 00 5 2 09 5 1 . 5 6 01 9 9 3 . 9 6 4 02 06 2 . 4 3 2 7 4 6 9 3 . 1 1Professional Services
1 6 2 0 4 8 4 02 0 6 1 5 3 6 8 . 4 3 7 1 7 7 4 5 7 09 7 6 2 3 7 8 01 . 9 2 4 7 5 8 9 . 5 8Financial Services
3 3 6 0 1 3 6 6 6 4 2 1 02 2 4 5 1 . 3 4Technology
1 1 6 4 0 7 5 9 9 0 6 1 1 6 5 0 8 8 2 6 3 7 2 6 4 8 09 . 8Retail & Consumer Goods
3 4 5 9 0 6 6 8 4 0 1 4 4 6 1 . 2 3 2 7 09 . 6 1 5 9 9 9 8 . 04 9 9 3 2 7 6 . 4 9 6 1 1 2 9 6 . 8Healthcare & Life Sciences
9 2 8 9 . 2 1 9 8 7 2 1 1 2 3 9 9 3 7 5 2 9 2 02 1 05 8 4 3Technology
1 08 0 8 4 0 7 7 3 3 8 0 1 2 6 1 5 09 5 3 3 . 9 3 1 8 9 8 9 3 . 7 7Healthcare & Life Sciences
2 4 4 9 04 2 1 1 9 5 . 7 3Technology
1 008 1 1 2 4 7 6 7 2 1 1 2 02 3 1 1 1 5 9 9 8 1 1 2 00000 8 1 1 2 2 5 00001Financial Services
7 2 0 1 5 9 6 2 7 8 2 6 004 08 7 2 1Healthcare & Life Sciences
3 02 4 00 2 8 6 2 7 2 4 9 2 2 2 8 4 2 3 2 7 0 6 02 5 8 0 7 5 9 09 1 . 2 1 8 0Financial Services
4 5 0 5 3 9 4 1 9 008 0 9 3 8 3 5 9 . 3 2 3 2 8 8 3 6 3 7 9 3 . 4 2 3 00Healthcare & Life Sciences
1 2 00000 9 6 7 3 2 1 1 2 7 7 6 8 0 2 5 5 000Healthcare & Life Sciences
6 4 3 5 . 8 7 6 4 5 . 8 7 2 8 5 6 5 6 . 1 9 1 1 07 000 5 04 000 6 6 7 7 9 0Financial Services
2 9 4 5 4 0 2 8 8 000 4 1 2 8 00 4 4 1 6 01 1 5 5 2 00Media & Entertainment
2 2 6 8 0 8 7 4 1 03 1 6 1 09 3 7 2 1 6 1 7 5 1 8 0. 5 6Technology
1 2 001 7 6 3 8 01 5 7 4 2 01 6 4 1 5 2 2 9 2 4 4 09 6 4 9 7 02 2Industrial Goods & Automotive
7 2 0000 6 3 0000 8 3 3 000Technology
5 6 6 1 0 2 2 5 1 7 0Financial Services
2 2 2 000 3 1 5 000 3 6 5 4 9 1 1 8 1 2 000 1 7 3 8 1 5 . 9 3 1 8 2Technology
2 5 2 0 1 8 6 2 7 4 5 4 9 5 6 0 2 1 07 6 6 5 2 3 4 2 . 08 1 04 9 04 1Professional Services
5 4 0 1 3 2 0 5 8 2 4 08 0 4 3 1 3 06 3 . 9 2 1 9 8 08 7 9 . 3 8 1 1 4 9 7 7 7 . 2 8Energy
3 3 5 05 4 0 4 8 5 000 3 2 5 001 4 1 7 1 2 0 1Healthcare & Life Sciences
1 1 00000 1 2 3 5 2 5 0 3 04 7 5 1 1 0002 1 2 0001 1 5 8 7 08 . 6 5Industry FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Retail & Consumer Goods
4 02 5 4 0 1 2 6 0 8 4 6 8 1 4 2 6 2 6 5 9 1 8 2 3 4 6 8 7 5 2Technology
1 4 4 000 1 4 4 00 2 3 04 00 4 06 08 2 1 9 2 6 00 6 4 8 01 7 5 0000Technology
7 2 4 5 0 3 8 07 00 1 04 5 3 00 5 4 3 9 5 0 1 2 1 07 3 7 . 5Healthcare & Life Sciences
7 7 4 0 3 4 9 4 4 0 5 2 4 1 6 0 2 4 1 9 2 1 2 03 1 9 9 . 9 9 2 5 0000 7 0000Professional Services
5 4 0 1 3 8 3 1 . 2 2 2 1 1 3 9 0. 1 9 1 06 2 9 4 8 9 4 05 4 0 3 5 2 000 2Industrial Goods & Automotive
5 4 0 4 003 5 4 3 4 2 0002 1 2Financial Services
5 4 0 1 08 0 5 2 2 5 4 0 1 05 3 1 8 1 1 9 9 9 6 8 5 . 4 9Financial Services
1 6 9 7 2 8 0 9 9 8 4 0 3 4 5 6 00 5 8 5 001 1 01 1 7 . 7Healthcare & Life Sciences
7 2 6 3 5 7 . 1 7 8 5 3 6 6 5 . 4 3 1 3 2 2 06 . 8 7 7 9 6 4 6 3 . 6 9 1 2Industrial Goods & Automotive
3 9 6 4 8 0 8 4 8 4 00 7 5 5 1 2 0Healthcare & Life Sciences
8 4 00 1 9 3 2 6 0 3 06 0 5 4 0 4 4 4 4 8 0 3 7 4 1 7 7 . 2 7Marketing & Advertising
6 00 1 1 06 . 6 3 1 1 4 5 8 1 0 1 1 9 5 000Healthcare & Life Sciences
1 2 001 8 0 1 9 5 0001Healthcare & Life Sciences
1 2 001 2 0 2 1 5 4 7 4 . 3 8Financial Services
7 3 1 4 01 5 8 5 1 2 2 1 8 3 6 . 4Financial Services
3 4 2 000 1 1 3 3 2 5 1 1 7 08 2 9 0 6 2 4 . 2Public Sector
5 4 0 4 07 2 2 . 1 5 2 1 02 1 00 3 1Industrial Goods & Automotive
1 8 2 8 5 0 2 8 9 8 00 4 3 4 7 00 5 7 9 6 00Industrial Goods & Automotive
1 8 0 1 2 6 9 4 5 3 4 8 8 9 9 . 7 9Financial Services
3 1 5 4 5 5 1 1 5 6 1 6 3 9 . 6 1Industrial Goods & Automotive
2 1 09 6 01 1 1 05 4 8 0Professional Services
1 5 5 0002 1Healthcare & Life Sciences
8 7 9 6 6 1 . 5 8 1 1 7 4 7 6 0. 9 6Technology
5 4 0 3 9 4 009 9 . 7 8 1 3 1 7 . 8 7Public Sector
3 3 5 8 5 7 5 1Industrial Goods & Automotive
2 6 2 7 8 5 5 . 9 7 1Financial Services
2 1 1 2 5 3 8 . 4 5Industrial Goods & Automotive
1 5 6 4 1 9 2 . 6Retail & Consumer Goods
1 4 9 9 6 00 2Financial Services
1 5 05 9 1 9 . 6 SLIDE 91
91 Box Financial Analyst Day 2018
Driving Growth and Leverage in the Enterprise
- Cloud Content Management traction
- Strong customer economics
- Driving leverage
- Path to $1 billion
SLIDE 92
92 Box Financial Analyst Day 2018
Note: This slide is for illustrative purposes only and is not intended to represent Box's expectations regarding future ARR growth.
ARR Contribution Margin: ARR - S&M - COGS Sales and Marketing Expenses ~$1.65 CAC for $1 ARR Negative Contribution Margin
$1 ARR
Inherent Business Model Leverage
Improved cost efficiency for landing customers, recoup costs within 20 months
SLIDE 93
93 Box Financial Analyst Day 2018
Note: This slide is for illustrative purposes only and is not intended to represent Box's expectations regarding future ARR growth.
~$1.65 CAC for $1 ARR Negative Contribution Margin $0.90 Upsell Cost for $1 ARR Upsell Slightly Positive Contribution Margin
$1 ARR $1 ARR
Inherent Business Model Leverage
Customer expansion drives more efficient growth
ARR Contribution Margin: ARR - S&M - COGS Sales and Marketing Expenses
SLIDE 94
94 Box Financial Analyst Day 2018
~$1.65 CAC for $1 ARR Negative Contribution Margin $0.90 Upsell Cost for $1 ARR Upsell Slightly Positive Contribution Margin $0.05 Renewal Cost Highly positive contribution margin
$1 ARR $1 ARR $1 ARR
Inherent Business Model Leverage
Growing renewal base is highly profitable
Note: This slide is for illustrative purposes only and is not intended to represent Box's expectations regarding future ARR growth.
ARR Contribution Margin: ARR - S&M - COGS Sales and Marketing Expenses
SLIDE 95
95 Box Financial Analyst Day 2018
~$1.65CAC for $1 ARR Negative Contribution Margin
Land Expand Renew
$0.90 Upsell Cost for $1 ARR Upsell Slightly Positive Contribution Margin >$9 Total Contribution Margin Over 10-Year Period $0.05 Renewal Cost Highly positive contribution margin
$1 ARR $1 ARR $1 ARR
Inherent Business Model Leverage
Compounding effect drives >$9 CLTV over 10 years
Note: This slide is for illustrative purposes only and is not intended to represent Box's expectations regarding future ARR growth.
ARR Contribution Margin: ARR - S&M - COGS Sales and Marketing Expenses
SLIDE 96
96 Box Financial Analyst Day 2018
Driving Significant S&M Operating Leverage
1H’19 S&M as a % of revenue improved 6 points YoY to 47%
S&M spend as % revenue
Note: Salesand marketing expensesby type asa percentage of revenue are presented on a non-GAAP basis , which exclude stock-based compensation and intangible assets amortization.
43% 6% 7% 36% 6% 6% 3% 4%
Inherent Business Model Leverage
- Lower cost of customer expansion and renewals
- Average AE tenure increases as they ramp
- Scale drives free user marketing leverage
Focus Areas
- Improving AE productivity through CCM
solution selling
- Driving lead-to-close efficiencies
- Leveraging partners to enhance sales efficiency
30% 26% 14% 14% 9% 6%
1H'18* 1H'19* Demand Generation (including FUM) Overhead & Others (e.g. IT, Facilities, Travel etc) Headcount
SLIDE 97
97 Box Financial Analyst Day 2018
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FY'17 FY'18 1H'19* Non-GAAP Operating Expense (% of Revenue) G&A R&D S&M
- 20%
- 18%
- 16%
- 14%
- 12%
- 10%
- 8%
- 6%
- 4%
- 2%
0% FY'17 FY'18 1H'19* Non-GAAP Operating Margin (% of Revenue)
* Box adopted the new revenue recognition standard ASC 606 beginning with its fiscal year 2019 using the modified retrospectivetransition method. The reported results for fiscal year 2019 reflect the application of ASC 606 while the reported results for fiscal years 2017 and 2018 are not adjusted and continue to be reported under the prior revenue recognition standard ASC 605. ** Box adopted ASU 2016-18, Restricted Cash, beginning with its fiscal year 2019. The reported results for all periods presented reflect the application of ASU 2016-18.
Note: Non-GAAP Operating Expense, Non-GAAP Operating Margin and Free Cash Flow Margin are non-GAAP financial measures. A reconciliation to the nearest GAAP measures can be found in the Appendix to this presentation.
Steadily Progressing Toward Profitability
Converging on positive operating margin; significant improvement on free cash flow margin
- 8%
- 7%
- 6%
- 5%
- 4%
- 3%
- 2%
- 1%
0% 1% 2% FY'17 FY'18 1H'18 1H'19* Free Cash Flow Margin** (% of Revenue)
SLIDE 98
98 Box Financial Analyst Day 2018
Driving Growth and Leverage in the Enterprise
- Cloud Content Management traction
- Strong customer economics
- Driving leverage
- Path to $1 billion
SLIDE 99
99 Box Financial Analyst Day 2018
Add-on products Deeper customer engagements Strategic partnerships International expansion
Key Growth Drivers
Evolution to solution selling
SLIDE 100
100 Box Financial Analyst Day 2018
Addressing $45B+ CCM Market
$45+ billion by 2019
Retire legacy storage, shift to cloud Power next-gen content-driven apps Store, share, access Govern, secure, audit, enable workflows
Source: IDC Worldwide Forecasts for File Sync & Share, Storage for Public & Private Cloud, Content Management Software, Content Collaboration Software, Team Collaboration Applications, BPM Software, Gartner Public Cloud Services Worldwide 2013-2019 and management estimates for platform.
Apps
ECM & Collaboration ($16B)
Infra
Platform ($5B) File Sync/Share ($2B)
Network storage ($23B)
SLIDE 101
101 Box Financial Analyst Day 2018
FY17* FY18* 1HFY’19* Key Drivers At $1B+ in FY22 Gross Margin 75% 75% 74% Scale into expanded data center footprint ~75% S&M as a % of revenue 57% 54% 47% Drive business model leverage & rep productivity ~37% R&D as a % of revenue 21% 20% 20% Continue to innovate on world class products ~18% G&A as a % of revenue 14% 13% 12% Focus on operational excellence ~9% Operating Margin (18%) (11%) (5%) Manage spend & benefit from economies of scale ~11% Free Cash Flow Margin** (7%) 1% (1%) Scale infrastructure via public cloud & leasing ~17%
Target Model at $1B+ Revenue in FY22
Capturing market opportunity while driving operational leverage
* Box adopted the new revenue recognition standard ASC 606 beginning with its fiscal year 2019 using the modified retrospectivetransition method. The reported results for fiscal year 2019 reflect the application of ASC 606 while the reported results for fiscal years 2017 and 2018 are not adjusted and continue to be reported under the prior revenue recognition standard ASC 605. ** Box adopted ASU 2016-18, Restricted Cash, beginning with its fiscal year 2019. The reported results for all periods presented reflect the application of ASU 2016-18.
Note: Gross Margin, S&M as a % of revenue, R&D as a % of revenue, G&A as a % of revenue, Non-GAAP Operating Margin, and Free Cash Flow Margin are non-GAAP financial measures. A reconciliation to the nearest GAAP measures can be found in the Appendix to this presentation.
SLIDE 102
102 Box Financial Analyst Day 2018
Key investment takeaways
/
Powering cloud content management for enterprises is a large and robust market opportunity with a long runway for growth
/
Unique and differentiated product
- ffering includes a neutral platform that
delivers a single source of truth and best of breed applications, advanced enterprise security and is positioned for artificial intelligence.
/
Improved GTM execution to support solution sales is driving higher ACVs and pricing power and stronger customer retention
/
Inherent business model leverage, with best-in-class renewal rate and strong customer lifetime value
SLIDE 103
103 Box Financial Analyst Day 2018
Aaron Levie
Co-founder and CEO, Box
Dylan Smith
Co-founder and CFO, Box
Stephanie Carullo
Chief Operating Officer, Box
Jeetu Patel
Chief Product Officer, Box
Executive Q&A
SLIDE 104
Appendix
SLIDE 105
105 Box Financial Analyst Day 2018
GAAP Revenue to Billings Reconciliation
($ in thousands) 1HFY’18* 1HFY’19**
GAAP revenue $240,163 $288,729 Deferred revenue, end of period 240,839 301,517 Less: deferred revenue, beginning of period (241,984) (311,109)*** Contract assets, beginning of period****
- 582
Less: contract assets, end of period****
- (157)
Billings $239,018 $279,562
* As reported under ASC 605 ** As reported under ASC 606 *** Balance as of February 1, 2018 upon the adoption of ASC 606 **** Updated as a result of our adoption of ASC 606
SLIDE 106
106 Box Financial Analyst Day 2018
GAAP to Non-GAAP Reconciliation – Earnings per Share
1HFY’18* 1HFY’19**
GAAP EPS ($0.60) ($0.54) Stock-based compensation 0.36 0.42 Intangible assets amortization
- Non-GAAP EPS
($0.24) ($0.12) Weighted average shares outstanding, basic and diluted (in thousands) 132,237 139,639
* As reported under ASC 605 ** As reported under ASC 606
SLIDE 107
107 Box Financial Analyst Day 2018
GAAP to Non-GAAP Reconciliation – Free Cash Flow*
($ in thousands) FY17** As a %
- f
revenue 1HFY17** As a %
- f
revenue FY17** As a %
- f
revenue 1HFY’18** As a %
- f
revenu e 1HFY’19* ** As a % of revenue
Net cash (used in) provided by
- perating activities****
($2,389) (1%) ($9,111)
- 5%
($2,389) (1%) ($1,220) (1%) $17,173 6% Less: purchases of property and equipment (14,956) (11,747) (14,956) (1,797) (7,366) Less: payments of capital lease
- bligations
(8,675) (3,261) (8,675) (7,912) (12,902) Free cash flow ($26,020) (7%) ($24,119)
- 13%
($26,020) (7%) ($10,929) (5%) ($3,095) (1%)
* Box adopted ASU 2016-18, Restricted Cash, beginning with its fiscal year 2019. The reported results for all periods presented reflect the application of ASU 2016-18 ** As reported under ASC 605 *** As reported under ASC 606 ****For fiscal year 2018, cash flows provided by operating activities decreased by $26.4 million due to the adoption of ASU 2016-18. Of the $26.4 million, we had previously excluded the impact of the $25.0 million release of restricted cash for Non-GAAP purposes.
SLIDE 108
108 Box Financial Analyst Day 2018
GAAP to Non-GAAP Reconciliation – Gross Margin
($ in thousands) FY17* As a % of revenue FY18* As a % of revenue 1HFY’19** As a % of revenue
GAAP gross margin
$286,475 72% $370,894 73% $207,056 72%
Add: stock-based compensation
7,882 10,742 6,682
Add: intangible assets amortization
3,197 365
- Non-GAAP gross margin
$297,554 75% $382,001 75% $213,738 74%
* As reported under ASC 605 ** As reported under ASC 606
SLIDE 109
109 Box Financial Analyst Day 2018
GAAP to Non-GAAP Reconciliation – Operating Expenses
($ in thousands) FY17* As a % of revenue FY18* As a % of revenue 1HFY’19** As a % of revenue
GAAP research and development $115,928 29% $136,791 27% $80,078 28% Less: stock-based compensation (30,796) (37,733) (21,625) Non-GAAP research and development $85,132 21% $99,058 20% $58,453 20% GAAP sales and marketing $253,020 63% $303,319 60% $153,982 53% Less: stock-based compensation (26,142) (31,742) (17,993) Less: intangible assets amortization
- (9)
Non-GAAP sales and marketing $226,878 57% $271,577 54% $135,980 47% GAAP general and administrative $68,182 17% $84,805 17% $46,075 16% Less: stock-based compensation (13,552) (17,268) (10,996) Less: intangible assets amortization (155) (154) (15) Less: expenses related to a legal verdict 1,664
- Non-GAAP general and administrative
$56,139 14% $67,383 13% $35,064 12%
* As reported under ASC 605 ** As reported under ASC 606
SLIDE 110
110 Box Financial Analyst Day 2018
GAAP to Non-GAAP Reconciliation – Operating Margin
($ in thousands) FY17* As a % of revenue FY18* As a % of revenue 1HFY’19** As a % of revenue
GAAP operating margin
($150,655) (38%) ($154,021) (30%) ($73,079) (25%)
Add: stock-based compensation
78,372 97,485 57,296
Add: intangible assets amortization
3,352 519 24
Add: expenses related to a legal verdict
(1,664)
- Non-GAAP operating margin
($70,595) (18%) ($56,017) (11%) ($15,759) (5%)
* As reported under ASC 605 ** As reported under ASC 606