Box, Inc.

Thank you for standing by. My name is Jael, and I will be your conference operator today. At this time, I would like to welcome everyone to the Box, Inc. fourth quarter and fiscal 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. I would now like to turn the conference over to Box. You may begin.

Thanks, JL. Good afternoon and welcome to Box's fourth quarter and full year fiscal 2025 earnings conference call. I'm Cynthia Hiponia, Vice President, Investor Relations. On the call today, we have Aaron Levy, Box co-founder and CEO, and Dylan Smith, Box co-founder and CFO. Following our prepared remarks, we will take your questions. Today's call is being webcast and will also be available for replay on our IR website at boxinvestorrelations.com. Our webcast will be audio only, however, supplemental slides are available for download from our website. On this call, we will be making forward-looking statements including our first quarter and full-year fiscal 2026 financial guidance, our expectations regarding our financial performance for fiscal 2026 and future periods, including gross margins, operating margins, operating leverage, future profitability, net retention rates, remaining performance obligations, revenue and billings, and the impact of foreign currency exchange rates and deferred tax expenses, and our expectations regarding the size of our market opportunity, our planned investments, future product offerings, and growth strategies, our ability to achieve our revenue operating margins and other operating model targets, the timing and market adoption of and benefits from our new products, pricing models, and partnerships, our ability to address enterprise challenges and deliver cost savings for our customers, the impact of the macro environment on our business and operating results, and our capital allocation strategies, including potential repurchase of our common stock. These statements reflect our best judgment based on factors known to us currently, and actual events or results may differ materially. Please refer to our earnings press release filed today and the risk factors and documents we file with the Securities and Exchange Commission, including our most recent quarterly report, on Form 10-Q for information on risks and uncertainties that may cause actual results to differ materially from statements made on this earnings call. These forward-looking statements are being made as of today, March 4th, 2025, and we disclaim any obligation to update or revise them should they change or cease to be up to date. In addition, today's call, we will discuss non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to not as a substitute for or in isolation from our GAAP results. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP results in our earnings press release and in the related supplemental slides which can be found on the IR page of our website. Unless otherwise indicated, all references to financial measures are on a non-GAAP basis. Finally, our guidance today reflects the impact of several factors which Dylan will describe more fully in his comments. We've created a detailed guidance slide which summarizes these items. You can find this slide in the related supplemental slides posted to our IR website. Thank you. With that, let me turn the call over to Aaron.

Thanks, Cynthia, and thank you all for joining the call today. We delivered strong Q4 operating results reflecting stabilization of IT budgets and continued growth in customer demand for Box AI. We achieved revenue of $280 million, up 6% year over year, or 8% in constant currency, operating margins of 27.3%, and EPS of $0.42, one cent above our guidance. In fiscal 2025, we drove revenue growth of 5% year over year, or 7% in constant currency, and expanded operating margins by 320 basis points to 28%. It was a defining year for Box as we introduced the most transformational product lineup in our company's history with the delivery of our intelligent content management platform. In the last two weeks of the quarter, we released Enterprise Advanced, combining the full power of our ICM platform to customers in a single multi-product offering. We are pleased with the momentum we are seeing with customers and closed several dozen Enterprise Advanced deals in Q4. We are seeing companies start to adopt Enterprise Advance to power intelligent metadata extraction from documents, automate workflows and dashboards with box apps, gain access to forms, doc gen, and archive, and create custom AI agents with the AI Studio. Examples of Enterprise Advance customer wins in Q4 include through a systems integrator, a state DMV who is forecasting a huge increase in online title submissions due to changing regulations will be using Enterprise Advance to replace a legacy file system and to create custom portals to ease customer submissions and extract metadata to create dashboards for processing and managing of records. A US-based global investment firm that uses Box to power its client portal, as well as provide a custom internal document management system for its financial advisors, upgraded to Enterprise Advanced to support contract lifecycle management for their legal team, DocGen for multiple departments, and AI Studio to deliver content-focused AI agents to help advisors answer questions faster about their documents and enhance their workflows. Also, through a systems integrator, an American international law firm moved to Enterprise Advanced to expand their use of Box within their organization. Specifically, their information governance team is looking at ways to leverage Box AI to help automate internal processes as they deal with repeated documents from templates. They will also continue to build out high-value use cases over the next several months from the Box AI Studio, using metadata extraction on contracts, archive, and more. As we've seen in our Q4 deals and in talking with our customers throughout the past year, we're clearly entering one of the biggest shifts in business that we've ever seen, driven by AI. AI agents are entering the workforce and will augment and accelerate our work. Our unstructured data is enabling intelligence that we can now use to gain new insights about our business. And we can begin automating any workflow in the enterprise, especially that long tail of work that we couldn't automate before. The companies that take advantage of this moment will be the ones that win in the future. And of course, The ones that don't will fall behind and be severely at risk. At Box, internally, we are building an AI-first enterprise. We are looking at every aspect of our business and imagining what we can do to turbocharge productivity from our employees, allowing us to move faster, making more informed decisions, automate more busy work, and overall, just get more done. Box AI is central to this effort. As we use Box AI in hubs, to help Box employees ask HR or sales enablement questions to get information faster. Box engineers will use Box AI and Notes to review code for bugs or write documentation. In go-to-market, we use Box AI to write sales pitches and proposals for customers. And in fact, I even use Box AI to help improve my remarks today. Additionally, beyond Box AI, we're leveraging technology from key partners to help in engineering, customer success, and more. Most importantly, we are bringing this exact same value to all of our customers so they can begin to operate in an AI-first way as well. For the first time ever, organizations can truly tap into the value of their enterprise content. All of a sudden, any employee can gain the same level of expertise as the most knowledgeable employee just by asking questions of the existing enterprise data that's already there. The hidden information inside of contracts, invoices, financial documents, and customer data turns into business critical insights that drive better execution. Agentic AI can automate workflows that were expensive and time consuming, and by understanding what's in our content, we can better secure and protect it at scale. This is the power of intelligent content management from Box. To help our customers transform how they work with content and AI, as noted, we officially launched our new Enterprise Advanced plan at the tail end of Q4. With Enterprise Advanced, our customers can build no-code apps with Box apps, leverage Box forms and DocGen to automate workflows, use Box AI metadata extraction to pull out structured data from documents, create Box AI agents, and, with the Box AI Studio, be able to extend AI into more workflows and more. These new capabilities represent the foundation of intelligent workflow automation within Box. enabling the automation of business processes like contract management, digital asset management, invoice processing, clinical trial management, loan origination, and thousands of other workflows. And while FY25 was an important and critical year for us in delivering our intelligent content management platform, we are just getting started. In FY26, we will be advancing our platform to transform how enterprises work with their enterprise content and AI. We have many incredible product announcements in store to help our customers extract critical structured data from documents with AI, leveraging our AlphaMoon acquisition from last year. We'll continue to double down on Box apps to power no-code applications, deliver major advancements to Box Relay for workflow automation, and more. We'll also continue to strengthen our security and compliance posture with new breakthroughs in Box Shield. the launch of Box Archive, and more to help customers protect and govern their sensitive content. Finally, we'll be doubling down on our core AI platform capabilities, including more powerful intelligent document processing, agentic workflows, exploring new forms of data classification, better support for Box AI agents, and more. And as we've seen in recent weeks, The rate of innovation from AI model providers like OpenAI, DeepSeq, XAI, Gemini from Google, and Anthropic is only accelerating. Just in the past two weeks, we've made new models like GPT 4.5 and Claude 3.7 Sonnet available to customers with access to the Box AI Studio. Both of these new models have shown dramatic improvements on reasoning, math, and coding skills, which is extremely valuable in processing complex documents, contracts, lease agreements, financial records, and more. In fact, in our Box AI enterprise eval, we found that GPD 4.5 performs a whopping 20 points better than GPD 4.0 did for extracting data from documents in a single shot. These are huge advancements that will help drive more accuracy and quality to help enable even more mission-critical workflows with AI. To enable customers to experience Box AI more easily as they grow with Box, in February, we announced that we expanded Box AI availability in our Business, Business Plus, and Enterprise plans. And in addition to offering higher tiers of AI value within Enterprise Plus and Enterprise Advanced, we know that many customers have high-volume use cases for using AI on their content. And to help To enable these use cases, we've also added an AI consumption-oriented model to our platform with the launch of Box AI Units. These AI units allow customers to leverage AI credits for high-volume tasks like metadata extraction from documents, leveraging more advanced AI models as they get released, creating custom AI agents to automate workflows in the future, and more. And finally, we've been thrilled with the recent recognition of our industry-leading intelligent content management platform by several independent analyst firms. This includes being named a leader in the Forrester Wave for content platforms in Q1, a leader in the Gartner Magic Quadrant for document management last year, and a leader in the IDC MarketScape for worldwide intelligent content services in 2024. Now, turning to go to market. We continue to enable new and existing customers to recognize the full value of Box's ICM platform with increased adoption of our multi-product offerings. Suites represented 87% of deals over $100,000, up from 81% a year ago. We saw continued solid suites attach rates in large deals across all geographies. We grew suites to 60% of total revenue in Q4 compared to 55% a year ago. In addition to the exciting announcements that we are seeing around our newest suite, Enterprise Advanced, we still have a large opportunity to drive Enterprise Plus adoption, driven by our enhanced Box AI solutions. As we bring intelligent content workflows to the enterprise with AI, going to market with partners is also going to become increasingly critical. We continue to expand our work with key partners and system integrators across the world that can bring Box to more enterprises and embed us more deeply into our customers' workflows. We saw notable partner-led customer wins with Enterprise Advanced in Q4 as we drove larger deals with customers and powered more workflows in partnership with key system integrators. Fiscal 2025 was a pivotal year for Box, culminating in the launch of Enterprise Advanced, delivering to customers the full power of our intelligent content management platform in a single offering. As I stated earlier, we are clearly entering one of the biggest shifts in business that we've ever seen, driven by AI. Our strong financial model provides us with the opportunity to execute on our robust product roadmap and invest in strategic go-to-market initiatives, leading to accelerating our revenue growth in the long term. We will be providing more detail on our roadmap and growth strategy during our upcoming Financial Analyst Day on March 18th. And with that, I'll hand it over to Dylan.