2. 2
• 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, its
ability to achieve positive free cash flow, profitability, planned product enhancements, and the success of strategic
partnerships, as well as expectations regarding revenue, 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 2017.
• There are a significant number of factors that could cause actual results to differ materially from statements made in this
presentation, including: (1) adverse changes in general economic or market conditions; (2) delays or reductions in information
technology spending; (3) factors related to Box’s intensely 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‐based Enterprise Content Management market; (5) risks associated with Box’s
ability to manage its rapid growth effectively; (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 or expand their use of Box’s services; (8) Box’s ability
to provide 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; and (10) Box’s ability to realize the
expected benefits of its third‐party partnerships. 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 our most recent Quarterly Report on Form 10‐Q filed for the fiscal quarter
ended April 30, 2016.
• 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 of August 31, 2016.
• 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 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 31, 2016.
Investor Disclosure: Financial Forward‐Looking
Statements and Non‐GAAP Measures
3. 3
• Sustained strong revenue growth
• ~95% recurring revenue, SaaS product
• 66,000 customers, 60% of Fortune 500
• Significant new products (Governance, KeySafe, Zones &
Platform)
• Focus on positive FCF & Op Margin improvement
• Key alliances with IBM, Microsoft, Apple
• 1,300+ Employees, HQ in Redwood City, CA
$59
$124
$216
$303
FY 2013 FY 2014 FY 2015 FY 2016
The Leading Enterprise Content Management Platform
Revenue Growth ($M)
10. 10
$79.6
$106.5
$89.4
$130.2
$75.9
Q2'16 Q2'17 Q3'16 Q4'16 Q1'17
Billings & Deferred Revenue
Driven by Large Enterprise Deals and New Product Traction
$130.3
$183.0
$141.1
$186.4
$172.2
Q2'16 Q2'17 Q3'16 Q4'16 Q1'17
Billings Deferred Revenue
11. 11
19% 15%
27% 22%
73%
56%
Non‐GAAP Op Expense
As a % of Revenue
G&A R&D S&M
Q2’16 Q2’17
GAAP and Non‐GAAP Gross Margin and Operating Expenses
Gross Margin Improvement QoQ and Continued Operating Leverage
GAAP Gross Margin 71.2%, Non‐GAAP 74.0%
GAAP Op Expense $106M, Non‐GAAP $89M
Note: Expenses and operating margin shown on a non‐GAAP basis (reconciliations to the GAAP basis can be found in the Appendix of this presentation).
• S&M improved 17 percentage pts YoY,
demonstrating leverage in model.
• R&D improved 5 percentage pts YoY, even
including product offering expansion.
• G&A improved 4 percentage pts YoY due
to efficiency improvements.
75.3% 73.4% 73.2% 72.4% 74.0%
Q2'16 Q3'16 Q4'16 Q1'17 Q2'17
Non‐GAAP Gross Margin
Improved 26 pts
• Driven by lower server depreciation
expenses in Q2.
• Expanding data center footprint in the
rest of FY17
13. 13
$200.5
($4.9) ($0.8) ($5.2)
$211.4
Q1 Cash &
Equivalents,
Marketable
Securities (1)
CFO(2) CAPX Other Q2 Cash and
Equivalents (1)
Cash, Cash Equivalents & Restricted Cash
Healthy Cash Balances for Long Term Growth
• Cash from operations of
($4.9M), compared to
($21.7M) a year ago – an
improvement of 77%.
• ~$800,000 of CAPEX
materially lower than
$11M last quarter,
following completion of
Redwood City
Headquarters build.
• “Other” primarily
consists of RSU taxes and
capital lease payments
(cash from financing).
(Millions)
1. Balance includes ~$27 million in restricted cash for Q1FY17 and Q2FY17
14. 14
Substantial Improvement in Free Cash Flow Margin(1)
‐54%
‐48%
‐25%
‐18%
‐8%
Q2'16 Q3'16 Q4'16 Q1'17 Q2'17
FCF improvement due to:
• Improvements in non‐GAAP operating loss
• Cash flow from operations improving with tighter working
capital management
• End of significant HQ move costs
1. Free Cash Flow Margin = Free Cash Flow as a percentage of Revenue. Refer to the Appendix for the reconciliation of Free Cash Flow to the nearest GAAP
measure.
15. 15
Q3 and Fiscal Year 2017 Guidance Ranges
Q3 FY17 Guidance
Revenue GAAP EPS Non‐GAAP EPS
Weighted Average
Shares Outstanding
Low High Low High Low High
$100 M $101 M ($0.36) ($0.35) ($0.20) ($0.19) 128 million
FY 17 Guidance
Revenue GAAP EPS Non‐GAAP EPS
Weighted Average
Shares Outstanding
Low High Low High Low High
$394 M $396 M ($1.30) ($1.28) ($0.69) ($0.67) 127 million
17. 17
GAAP Revenue to Billings Reconciliation
($ in thousands) Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17
GAAP revenue $73,450 $78,651 $84,982 $90,155 $95,713
Deferred revenue, end of period 130,349 141,147 186,413 172,184 183,004
Less: deferred revenue, beginning of
period
(124,201) (130,349) (141,147) (186,413) (172,184)
Billings $79,598 $89,449 $130,248 $75,926 $106,533
18. 18
GAAP to Non‐GAAP Reconciliation – Gross Margin
($ in thousands) Q2FY16
As a % of
revenue Q3FY16
As a % of
revenue Q4FY16
As a % of
revenue Q1FY17
As a % of
revenue Q2FY17
As a % of
revenue
GAAP gross margin $52,814 71.9% $55,021 70.0% $59,301 69.8% $62,296 69.1% $68,111 71.2%
Add: Stock‐based
compensation 1,041 1,272 1,500 1,512 1,830
Add: Intangible assets
amortization 1,472 1,431 1,433 1,420 878
Non‐GAAP gross margin $55,327 75.3% $57,724 73.4% $62,234 73.2% $65,228 72.4% $70,819 74.0%
19. 19
GAAP to Non‐GAAP Reconciliation – Operating Expenses
($ in thousands) Q2FY16
As a % of
revenue Q1FY17
As a % of
revenue Q2FY17
As a % of
revenue
GAAP research and development $26,453 36% $26,907 30% $28,265 30%
Less: stock‐based compensation (6,303) (6,524) (7,348)
Non‐GAAP research and development $20,150 27% $20,383 23% $20,917 22%
GAAP sales and marketing $58,460 80% $59,472 66% $60,186 63%
Less: stock‐based compensation (4,742) (5,230) (6,416)
Non‐GAAP sales and marketing $53,718 73% $54,242 60% $53,770 56%
GAAP general and administrative $17,675 24% $14,509 16% $17,579 18%
Less: stock‐based compensation (2,642) (2,823) (3,470)
Less: Intangible assets amortization (39) (39) (38)
Less: Expenses related to a legal verdict (792) 1,664 ‐
Non‐GAAP general and administrative $14,202 19% $13,311 15% $14,071 15%
20. 20
GAAP to Non‐GAAP Reconciliation – Operating Margin
($ in thousands) Q2FY16
As a % of
revenue Q1FY17
As a % of
revenue Q2FY17
As a % of
revenue
GAAP operating margin ($49,774) (68%) ($38,592) (43%) ($37,919) (40%)
Less: stock‐based compensation 14,278 16,089 19,064
Less: Intangible assets amortization 1,511 1,459 916
Less: Expenses related to a legal verdict 792 (1,664) ‐
Non‐GAAP operating margin ($32,743) (45%) ($22,708) (25%) ($17,939) (19%)
