Box, Inc. is scheduled to release its earnings report for Q3 FY25 on December 3, 2024, after the market closes. Analysts expect an EPS of $0.42 and revenue of $275.1 million.

Highlights:

Year-over-year (YoY), the EPS reflects a 16.67% increase compared to $0.36 in Q4 2023, while quarter-over-quarter (QoQ), it shows a slight decrease of 4.55% from $0.44 in Q3 FY24. Revenue is anticipated to grow 5% YoY from $261.5 million, though it may see a 1% decline QoQ from $270 million.

Key metrics include a gross margin of 81.6%, up 470 basis points YoY, and an operating margin of 28.4%, up 360 basis points YoY. While annual recurring revenue (ARR) is not explicitly stated, the 12% YoY growth in remaining performance obligations (RPO) suggests solid recurring revenue potential.

Strategies:

Growth is driven by increased adoption of Box AI and Enterprise Plus plans, particularly in sectors like financial services and government, where demand remains strong. The integration of advanced AI features continues to enhance its product offerings. However, challenges include macroeconomic pressures impacting small and medium-sized businesses (SMBs) and competition within the cloud content management market.

Guidance:

For Q3 2025, Box expects revenue between $274 million and $276 million, reflecting 5% YoY growth. The full-year FY 2025 revenue is guided at $1.086 billion to $1.09 billion, with a non-GAAP EPS range of $0.41 to $0.42, indicating a 16% YoY increase.

Earnings Reaction:

Aug 27, 2024: The Company reported after market and next day stock was up 10.8%.

May 28, 2024: The Company reported after market and next day stock was up 8.6%

Mar 5, 2024: The Company reported after market and next day stock was up 8.5%

Dec 5, 2024: The Company reported after market and next day stock was down 10.2%

Technical:

Box stock is trading at $35.32 with 0.66% increase today. The stock closed the previous week at $35.09 with 2.36% increase over the week. Last week the stock placed a new all-time high. Short-term price target for the stock is $38.5 while mid-long term targets is $42.

Currently 50, 100 and 200 day EMAs are at $33, $31.5 and $30. All these EMAs are acting as strong support for the stock. At daily timeframe RSI is at 68 while MACD is bearish. The stock is also trading in an ascending wedge.