false 2021 Q3 0001372612 --01-31 0.0625 0.0625 0.0208 0.0625 0.0625 P4Y 0.0208 P5Y11M4D P6Y10M2D P2Y6M18D P3Y25D P4Y3M7D P3Y11M15D P3Y11M1D P3Y7D P5Y9M18D P6M P6M P6M P6M P5Y6M P5Y9M18D P2Y P2Y P2Y P2Y 0.017 0.001 0.017 0.019 0.004 0.025 0.54 0.47 0.54 0.55 0001372612 2020-02-01 2020-10-31 xbrli:shares 0001372612 2020-11-30 iso4217:USD 0001372612 2020-10-31 0001372612 2020-01-31 iso4217:USD xbrli:shares 0001372612 2020-08-01 2020-10-31 0001372612 2019-08-01 2019-10-31 0001372612 2019-02-01 2019-10-31 0001372612 us-gaap:CommonClassAMember 2020-01-31 0001372612 us-gaap:AdditionalPaidInCapitalMember 2020-01-31 0001372612 us-gaap:TreasuryStockMember 2020-01-31 0001372612 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-31 0001372612 us-gaap:RetainedEarningsMember 2020-01-31 0001372612 us-gaap:CommonClassAMember 2020-02-01 2020-04-30 0001372612 us-gaap:AdditionalPaidInCapitalMember 2020-02-01 2020-04-30 0001372612 2020-02-01 2020-04-30 0001372612 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-02-01 2020-04-30 0001372612 us-gaap:RetainedEarningsMember 2020-02-01 2020-04-30 0001372612 us-gaap:CommonClassAMember 2020-04-30 0001372612 us-gaap:AdditionalPaidInCapitalMember 2020-04-30 0001372612 us-gaap:TreasuryStockMember 2020-04-30 0001372612 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-30 0001372612 us-gaap:RetainedEarningsMember 2020-04-30 0001372612 2020-04-30 0001372612 us-gaap:CommonClassAMember 2020-05-01 2020-07-31 0001372612 us-gaap:AdditionalPaidInCapitalMember 2020-05-01 2020-07-31 0001372612 2020-05-01 2020-07-31 0001372612 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-05-01 2020-07-31 0001372612 us-gaap:RetainedEarningsMember 2020-05-01 2020-07-31 0001372612 us-gaap:CommonClassAMember 2020-07-31 0001372612 us-gaap:AdditionalPaidInCapitalMember 2020-07-31 0001372612 us-gaap:TreasuryStockMember 2020-07-31 0001372612 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-07-31 0001372612 us-gaap:RetainedEarningsMember 2020-07-31 0001372612 2020-07-31 0001372612 us-gaap:CommonClassAMember 2020-08-01 2020-10-31 0001372612 us-gaap:AdditionalPaidInCapitalMember 2020-08-01 2020-10-31 0001372612 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-08-01 2020-10-31 0001372612 us-gaap:RetainedEarningsMember 2020-08-01 2020-10-31 0001372612 us-gaap:CommonClassAMember 2020-10-31 0001372612 us-gaap:AdditionalPaidInCapitalMember 2020-10-31 0001372612 us-gaap:TreasuryStockMember 2020-10-31 0001372612 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-10-31 0001372612 us-gaap:RetainedEarningsMember 2020-10-31 0001372612 us-gaap:CommonClassAMember 2019-01-31 0001372612 us-gaap:AdditionalPaidInCapitalMember 2019-01-31 0001372612 us-gaap:TreasuryStockMember 2019-01-31 0001372612 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-31 0001372612 us-gaap:RetainedEarningsMember 2019-01-31 0001372612 2019-01-31 0001372612 us-gaap:CommonClassAMember 2019-02-01 2019-04-30 0001372612 us-gaap:AdditionalPaidInCapitalMember 2019-02-01 2019-04-30 0001372612 2019-02-01 2019-04-30 0001372612 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-02-01 2019-04-30 0001372612 us-gaap:RetainedEarningsMember 2019-02-01 2019-04-30 0001372612 us-gaap:CommonClassAMember 2019-04-30 0001372612 us-gaap:AdditionalPaidInCapitalMember 2019-04-30 0001372612 us-gaap:TreasuryStockMember 2019-04-30 0001372612 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-30 0001372612 us-gaap:RetainedEarningsMember 2019-04-30 0001372612 2019-04-30 0001372612 us-gaap:CommonClassAMember 2019-05-01 2019-07-31 0001372612 us-gaap:AdditionalPaidInCapitalMember 2019-05-01 2019-07-31 0001372612 2019-05-01 2019-07-31 0001372612 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-05-01 2019-07-31 0001372612 us-gaap:RetainedEarningsMember 2019-05-01 2019-07-31 0001372612 us-gaap:CommonClassAMember 2019-07-31 0001372612 us-gaap:AdditionalPaidInCapitalMember 2019-07-31 0001372612 us-gaap:TreasuryStockMember 2019-07-31 0001372612 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-31 0001372612 us-gaap:RetainedEarningsMember 2019-07-31 0001372612 2019-07-31 0001372612 us-gaap:CommonClassAMember 2019-08-01 2019-10-31 0001372612 us-gaap:AdditionalPaidInCapitalMember 2019-08-01 2019-10-31 0001372612 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-08-01 2019-10-31 0001372612 us-gaap:RetainedEarningsMember 2019-08-01 2019-10-31 0001372612 us-gaap:CommonClassAMember 2019-10-31 0001372612 us-gaap:AdditionalPaidInCapitalMember 2019-10-31 0001372612 us-gaap:TreasuryStockMember 2019-10-31 0001372612 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-10-31 0001372612 us-gaap:RetainedEarningsMember 2019-10-31 0001372612 2019-10-31 0001372612 us-gaap:CreditConcentrationRiskMember us-gaap:AccountsReceivableMember 2020-02-01 2020-10-31 0001372612 us-gaap:CreditConcentrationRiskMember us-gaap:AccountsReceivableMember 2019-02-01 2020-01-31 xbrli:pure 0001372612 us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueNetMember 2020-08-01 2020-10-31 0001372612 us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueNetMember 2020-02-01 2020-10-31 0001372612 us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueNetMember 2019-08-01 2019-10-31 0001372612 us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueNetMember 2019-02-01 2019-10-31 0001372612 us-gaap:GeographicConcentrationRiskMember us-gaap:SalesRevenueNetMember country:US 2020-08-01 2020-10-31 0001372612 us-gaap:GeographicConcentrationRiskMember us-gaap:SalesRevenueNetMember country:US 2020-02-01 2020-10-31 0001372612 us-gaap:GeographicConcentrationRiskMember us-gaap:SalesRevenueNetMember country:US 2019-08-01 2019-10-31 0001372612 us-gaap:GeographicConcentrationRiskMember us-gaap:SalesRevenueNetMember country:US 2019-02-01 2019-10-31 0001372612 us-gaap:GeographicConcentrationRiskMember us-gaap:SalesRevenueNetMember country:JP 2020-08-01 2020-10-31 0001372612 us-gaap:GeographicConcentrationRiskMember us-gaap:SalesRevenueNetMember country:JP 2020-02-01 2020-10-31 0001372612 us-gaap:GeographicConcentrationRiskMember us-gaap:SalesRevenueNetMember country:JP 2019-08-01 2019-10-31 0001372612 country:US us-gaap:GeographicConcentrationRiskMember us-gaap:NetAssetsGeographicAreaMember 2020-02-01 2020-10-31 0001372612 country:US us-gaap:GeographicConcentrationRiskMember us-gaap:NetAssetsGeographicAreaMember 2019-02-01 2020-01-31 0001372612 2020-11-01 2020-10-31 0001372612 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2020-10-31 0001372612 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2020-10-31 0001372612 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2020-10-31 0001372612 us-gaap:FairValueMeasurementsRecurringMember 2020-10-31 0001372612 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2020-01-31 0001372612 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2020-01-31 0001372612 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember us-gaap:FairValueInputsLevel2Member 2020-01-31 0001372612 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2020-01-31 0001372612 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2020-01-31 0001372612 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2020-01-31 0001372612 us-gaap:FairValueMeasurementsRecurringMember 2020-01-31 0001372612 us-gaap:InterestRateSwapMember 2020-02-01 2020-10-31 0001372612 us-gaap:InterestRateSwapMember 2020-10-31 0001372612 us-gaap:TechnologyEquipmentMember 2020-10-31 0001372612 us-gaap:TechnologyEquipmentMember 2020-01-31 0001372612 us-gaap:LeaseholdImprovementsMember 2020-10-31 0001372612 us-gaap:LeaseholdImprovementsMember 2020-01-31 0001372612 us-gaap:ComputerEquipmentMember 2020-10-31 0001372612 us-gaap:ComputerEquipmentMember 2020-01-31 0001372612 us-gaap:FurnitureAndFixturesMember 2020-10-31 0001372612 us-gaap:FurnitureAndFixturesMember 2020-01-31 0001372612 us-gaap:ConstructionInProgressMember 2020-10-31 0001372612 us-gaap:ConstructionInProgressMember 2020-01-31 0001372612 us-gaap:TechnologyEquipmentMember 2020-08-01 2020-10-31 0001372612 us-gaap:TechnologyEquipmentMember 2019-08-01 2019-10-31 0001372612 us-gaap:TechnologyEquipmentMember 2020-02-01 2020-10-31 0001372612 us-gaap:TechnologyEquipmentMember 2019-02-01 2019-10-31 0001372612 box:OnPremisesSoftwareMember 2020-10-31 0001372612 box:OnPremisesSoftwareMember 2020-01-31 0001372612 box:OnPremisesSoftwareMember srt:MinimumMember 2020-02-01 2020-10-31 0001372612 box:OnPremisesSoftwareMember srt:MaximumMember 2020-02-01 2020-10-31 0001372612 srt:MinimumMember 2020-02-01 2020-10-31 0001372612 srt:MaximumMember 2020-02-01 2020-10-31 box:FinanceLease 0001372612 srt:MinimumMember 2020-10-31 0001372612 srt:MaximumMember 2020-10-31 0001372612 box:OtherLongTermLiabilitiesMember 2020-10-31 0001372612 box:OtherLongTermLiabilitiesMember 2019-10-31 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:LetterOfCreditMember us-gaap:SecuredDebtMember box:WellsFargoBankMember 2020-10-31 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:LetterOfCreditMember us-gaap:SecuredDebtMember box:WellsFargoBankMember 2020-01-31 0001372612 box:AccountsPayableAccruedExpensesAndOtherCurrentLiabilitiesAndOtherLongTermLiabilitiesMember 2020-10-31 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember box:WellsFargoBankMember 2017-11-26 2017-11-27 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:SecuredDebtMember box:WellsFargoBankMember 2017-11-26 2017-11-27 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember box:WellsFargoBankMember 2017-11-27 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:LetterOfCreditMember us-gaap:SecuredDebtMember box:WellsFargoBankMember 2017-11-27 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:SecuredDebtMember box:WellsFargoBankMember 2017-11-27 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:SecuredDebtMember box:WellsFargoBankMember 2019-07-11 2019-07-12 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember box:WellsFargoBankMember 2019-07-12 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:LetterOfCreditMember us-gaap:SecuredDebtMember box:WellsFargoBankMember 2019-07-12 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:SecuredDebtMember box:WellsFargoBankMember 2019-07-12 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember box:WellsFargoBankMember us-gaap:PrimeRateMember 2020-02-01 2020-10-31 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember box:WellsFargoBankMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-02-01 2020-10-31 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember box:WellsFargoBankMember 2020-02-01 2020-10-31 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember box:WellsFargoBankMember 2020-04-30 0001372612 box:NovemberTwoThousandSeventeenFacilityMember us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember box:WellsFargoBankMember 2020-10-31 0001372612 box:TwentyFifteenEquityIncentivePlanMember us-gaap:CommonClassAMember 2020-10-31 0001372612 box:TwentyFifteenEquityIncentivePlanMember us-gaap:CommonClassAMember 2015-01-31 0001372612 box:TwentyFifteenEquityIncentivePlanMember us-gaap:RestrictedStockUnitsRSUMember 2020-02-01 2020-10-31 0001372612 box:TwentyFifteenEquityIncentivePlanMember us-gaap:ShareBasedCompensationAwardTrancheOneMember us-gaap:RestrictedStockUnitsRSUMember 2020-02-01 2020-10-31 0001372612 box:TwentyFifteenEquityIncentivePlanMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember us-gaap:RestrictedStockUnitsRSUMember 2020-02-01 2020-10-31 0001372612 box:TwentyFifteenEquityIncentivePlanMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember us-gaap:RestrictedStockUnitsRSUMember 2020-02-01 2020-10-31 0001372612 us-gaap:CommonClassAMember box:TwentyFifteenEmployeeStockPurchasePlanMember 2015-01-31 0001372612 box:TwentyFifteenEmployeeStockPurchasePlanMember 2020-10-31 0001372612 box:TwentyFifteenEmployeeStockPurchasePlanMember 2020-02-01 2020-10-31 0001372612 us-gaap:CommonClassAMember box:TwentyFifteenEmployeeStockPurchasePlanMember 2020-10-31 0001372612 2019-02-01 2020-01-31 0001372612 box:TwentyFifteenEquityIncentivePlanMember us-gaap:PerformanceSharesMember 2020-10-31 0001372612 box:TwentyFifteenEquityIncentivePlanMember box:TimeBasedStockOptionsMember 2020-02-01 2020-10-31 0001372612 box:TwentyFifteenEquityIncentivePlanMember us-gaap:ShareBasedCompensationAwardTrancheOneMember box:TimeBasedStockOptionsMember 2020-02-01 2020-10-31 0001372612 box:TwentyFifteenEquityIncentivePlanMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember box:TimeBasedStockOptionsMember 2020-02-01 2020-10-31 0001372612 us-gaap:PerformanceSharesMember 2020-10-31 0001372612 us-gaap:PerformanceSharesMember 2020-02-01 2020-10-31 0001372612 us-gaap:RestrictedStockUnitsRSUMember 2020-01-31 0001372612 us-gaap:RestrictedStockUnitsRSUMember 2020-02-01 2020-10-31 0001372612 us-gaap:RestrictedStockUnitsRSUMember 2020-10-31 0001372612 box:FiscalTwoThousandAndTwentyExecutiveBonusPlanMember 2020-02-01 2020-04-30 0001372612 box:FiscalTwoThousandAndTwentyOneExecutiveBonusPlanMember 2020-02-01 2020-10-31 0001372612 box:FiscalTwoThousandAndTwentyOneExecutiveBonusPlanMember 2020-10-31 0001372612 box:FiscalTwoThousandAndTwentyOneExecutiveBonusPlanMember srt:MaximumMember 2020-02-01 2020-10-31 0001372612 us-gaap:CostOfSalesMember 2020-08-01 2020-10-31 0001372612 us-gaap:CostOfSalesMember 2019-08-01 2019-10-31 0001372612 us-gaap:CostOfSalesMember 2020-02-01 2020-10-31 0001372612 us-gaap:CostOfSalesMember 2019-02-01 2019-10-31 0001372612 us-gaap:ResearchAndDevelopmentExpenseMember 2020-08-01 2020-10-31 0001372612 us-gaap:ResearchAndDevelopmentExpenseMember 2019-08-01 2019-10-31 0001372612 us-gaap:ResearchAndDevelopmentExpenseMember 2020-02-01 2020-10-31 0001372612 us-gaap:ResearchAndDevelopmentExpenseMember 2019-02-01 2019-10-31 0001372612 us-gaap:SellingAndMarketingExpenseMember 2020-08-01 2020-10-31 0001372612 us-gaap:SellingAndMarketingExpenseMember 2019-08-01 2019-10-31 0001372612 us-gaap:SellingAndMarketingExpenseMember 2020-02-01 2020-10-31 0001372612 us-gaap:SellingAndMarketingExpenseMember 2019-02-01 2019-10-31 0001372612 us-gaap:GeneralAndAdministrativeExpenseMember 2020-08-01 2020-10-31 0001372612 us-gaap:GeneralAndAdministrativeExpenseMember 2019-08-01 2019-10-31 0001372612 us-gaap:GeneralAndAdministrativeExpenseMember 2020-02-01 2020-10-31 0001372612 us-gaap:GeneralAndAdministrativeExpenseMember 2019-02-01 2019-10-31 0001372612 us-gaap:EmployeeStockOptionMember 2020-02-01 2020-10-31 0001372612 us-gaap:EmployeeStockOptionMember srt:MinimumMember 2019-02-01 2019-10-31 0001372612 us-gaap:EmployeeStockOptionMember srt:MaximumMember 2019-02-01 2019-10-31 0001372612 us-gaap:EmployeeStockOptionMember 2019-02-01 2019-10-31 0001372612 box:TwentyFifteenEmployeeStockPurchasePlanMember srt:MinimumMember 2020-08-01 2020-10-31 0001372612 box:TwentyFifteenEmployeeStockPurchasePlanMember srt:MinimumMember 2019-08-01 2019-10-31 0001372612 box:TwentyFifteenEmployeeStockPurchasePlanMember srt:MinimumMember 2020-02-01 2020-10-31 0001372612 box:TwentyFifteenEmployeeStockPurchasePlanMember srt:MinimumMember 2019-02-01 2019-10-31 0001372612 box:TwentyFifteenEmployeeStockPurchasePlanMember srt:MaximumMember 2020-08-01 2020-10-31 0001372612 box:TwentyFifteenEmployeeStockPurchasePlanMember srt:MaximumMember 2019-08-01 2019-10-31 0001372612 box:TwentyFifteenEmployeeStockPurchasePlanMember srt:MaximumMember 2020-02-01 2020-10-31 0001372612 box:TwentyFifteenEmployeeStockPurchasePlanMember srt:MaximumMember 2019-02-01 2019-10-31 0001372612 box:TwentyFifteenEmployeeStockPurchasePlanMember 2020-08-01 2020-10-31 0001372612 box:TwentyFifteenEmployeeStockPurchasePlanMember 2019-08-01 2019-10-31 0001372612 box:TwentyFifteenEmployeeStockPurchasePlanMember 2019-02-01 2019-10-31 0001372612 us-gaap:EmployeeStockOptionMember 2020-08-01 2020-10-31 0001372612 us-gaap:EmployeeStockOptionMember 2019-08-01 2019-10-31 0001372612 us-gaap:EmployeeStockOptionMember 2020-02-01 2020-10-31 0001372612 us-gaap:EmployeeStockOptionMember 2019-02-01 2019-10-31 0001372612 us-gaap:RestrictedStockUnitsRSUMember 2020-08-01 2020-10-31 0001372612 us-gaap:RestrictedStockUnitsRSUMember 2019-08-01 2019-10-31 0001372612 us-gaap:RestrictedStockUnitsRSUMember 2020-02-01 2020-10-31 0001372612 us-gaap:RestrictedStockUnitsRSUMember 2019-02-01 2019-10-31 0001372612 us-gaap:EmployeeStockMember 2020-08-01 2020-10-31 0001372612 us-gaap:EmployeeStockMember 2019-08-01 2019-10-31 0001372612 us-gaap:EmployeeStockMember 2020-02-01 2020-10-31 0001372612 us-gaap:EmployeeStockMember 2019-02-01 2019-10-31 0001372612 2019-11-01 2020-01-31 0001372612 box:AccruedCompensationAndEmployeeBenefitsMember 2020-01-31 box:Segment

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 31, 2020  

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from         to        

Commission File Number 001-36805

 

Box, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

 

20-2714444

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

900 Jefferson Ave.

Redwood City, California 94063

(Address of principal executive offices and Zip Code)

(877) 729-4269

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Class A Common Stock, $0.0001 par value
per share

 

BOX

 

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

Non-accelerated filer

 

  

Small reporting company

 

Emerging growth company

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes      No  

As of November 30, 2020, the number of shares of the registrant’s Class A common stock outstanding was 158,643,287.

 

 

 


 

TABLE OF CONTENTS

 

 

 

PART I – FINANCIAL INFORMATION

 

Page

Item 1.

 

Financial Statements (Unaudited)

 

5

 

 

Condensed Consolidated Balance Sheets as of October 31, 2020 and January 31, 2020

 

5

 

 

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended October 31, 2020 and 2019

 

6

 

 

Condensed Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended October 31, 2020 and 2019

 

7

 

 

Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended October 31, 2020 and 2019

 

8

 

 

Condensed Consolidated Statements of Cash Flows for the Three and Nine Months Ended October 31, 2020 and 2019

 

10

 

 

Notes to Condensed Consolidated Financial Statements

 

11

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

24

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

39

Item 4.

 

Controls and Procedures

 

39

 

 

PART II – OTHER INFORMATION

 

 

Item 1.

 

Legal Proceedings

 

40

Item 1A.

 

Risk Factors

 

40

Item 6.

 

Exhibits

 

60

 

 

Signatures

 

61

 

2


 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:

 

our future financial and operating results; including expectations regarding revenues, deferred revenue, billings, remaining performance obligations, gross margins, operating income, and net retention rate;

 

our ability to maintain an adequate rate of revenue and billings growth and our expectations regarding such growth;

 

our market opportunity, business plan and ability to effectively manage our growth;

 

our ability to achieve profitability and expand or maintain positive cash flow;

 

our ability to achieve our long-term margin objectives;

 

our ability to grow our unrecognized revenue and remaining performance obligations;

 

our expectations regarding our revenue mix;

 

costs associated with defending intellectual property infringement and other claims and the frequency of such claims;

 

our ability to attract and retain end-customers;

 

our ability to further penetrate our existing customer base;

 

our ability to displace existing products in established markets;

 

our ability to expand our leadership position as a cloud content management platform;

 

our ability to timely and effectively scale and adapt our existing technology;

 

our ability to innovate new products and features and bring them to market in a timely manner and the expected benefits to customers and potential customers of our products;

 

our investment strategy, including our plans to further invest in our business, including investment in research and development, sales and marketing, our data center infrastructure and our professional services organization, and our ability to effectively manage such investments;

 

our ability to expand internationally;

 

expectations about competition and its effect in our market and our ability to compete;

 

the effects of seasonal trends on our operating results;

 

use of non-GAAP financial measures;

 

our belief regarding the sufficiency of our cash, cash equivalents and credit facilities to meet our working capital and capital expenditure needs for at least the next 12 months;

 

our expectations concerning relationships with third parties;

 

our ability to attract and retain qualified employees and key personnel;

 

our ability to realize the anticipated benefits of our partnerships with third parties;

 

the effects of new laws, policies, taxes and regulations on our business;

 

management’s plans, beliefs and objectives, including the importance of our brand and culture on our business;

 

our ability to maintain, protect and enhance our brand and intellectual property;

3


 

 

future acquisitions of or investments in complementary companies, products, services or technologies and our ability to successfully integrate such companies or assets; and

 

the impact of public health epidemics or pandemics, such as the COVID-19 pandemic, and governmental responses thereto.

These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Quarterly Report on Form 10-Q to conform these statements to actual results or to changes in our expectations, except as required by law.

You should read this Quarterly Report on Form 10-Q and the documents that we reference in this Quarterly Report on Form 10-Q and have filed with the SEC as exhibits to this Quarterly Report on Form 10-Q with the understanding that our actual future results, levels of activity, performance, and events and circumstances may be materially different from what we expect.

4


 

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

BOX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

 

 

 

October 31,

 

 

January 31,

 

 

 

2020

 

 

2020

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

275,400

 

 

$

195,586

 

Accounts receivable, net of allowance of $3,361 and $3,221

 

 

115,664

 

 

 

209,434

 

Prepaid expenses and other current assets

 

 

23,020

 

 

 

21,865

 

Deferred commissions

 

 

35,204

 

 

 

30,841

 

Total current assets

 

 

449,288

 

 

 

457,726

 

Property and equipment, net

 

 

173,621

 

 

 

190,976

 

Operating lease right-of-use assets, net

 

 

205,009

 

 

 

197,806

 

Goodwill

 

 

18,740

 

 

 

18,740

 

Deferred commissions, non-current

 

 

61,624

 

 

 

62,762

 

Other long-term assets

 

 

33,279

 

 

 

31,981

 

Total assets

 

$

941,561

 

 

$

959,991

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,426

 

 

$

16,752

 

Accrued compensation and benefits

 

 

21,856

 

 

 

32,516

 

Accrued expenses and other current liabilities

 

 

29,772

 

 

 

25,700

 

Finance lease liabilities

 

 

50,512

 

 

 

54,634

 

Operating lease liabilities

 

 

49,659

 

 

 

40,339

 

Deferred revenue

 

 

339,285

 

 

 

407,493

 

Total current liabilities

 

 

496,510

 

 

 

577,434

 

Debt, non-current

 

 

50,000

 

 

 

40,000

 

Finance lease liabilities, non-current

 

 

70,616

 

 

 

83,427

 

Operating lease liabilities, non-current

 

 

202,753

 

 

 

206,141

 

Deferred revenue, non-current

 

 

15,078

 

 

 

16,356

 

Other long-term liabilities

 

 

19,042

 

 

 

14,276

 

Total liabilities

 

 

853,999

 

 

 

937,634

 

Commitments and contingencies (Note 6)

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, par value $0.0001 per share; 100,000 shares authorized, no shares issued and outstanding as of October 31 (unaudited) and January 31, 2020

 

 

 

 

 

 

Class A common stock, par value $0.0001 per share; 1,000,000 shares authorized; 158,643 shares (unaudited) and 150,611 shares issued and outstanding as of October 31 and January 31, 2020, respectively

 

 

16

 

 

 

15

 

Additional paid-in capital

 

 

1,406,756

 

 

 

1,302,072

 

Treasury stock

 

 

(1,177

)

 

 

(1,177

)

Accumulated other comprehensive loss

 

 

(1,297

)

 

 

(307

)

Accumulated deficit

 

 

(1,316,736

)

 

 

(1,278,246

)

Total stockholders’ equity

 

 

87,562

 

 

 

22,357

 

Total liabilities and stockholders’ equity

 

$

941,561

 

 

$

959,991

 

 

See notes to condensed consolidated financial statements.

5


 

BOX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

October 31,

 

 

October 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue

 

$

196,003

 

 

$

177,156

 

 

$

571,857

 

 

$

512,679

 

Cost of revenue

 

 

56,812

 

 

 

56,302

 

 

 

166,141

 

 

 

158,858

 

Gross profit

 

 

139,191

 

 

 

120,854

 

 

 

405,716

 

 

 

353,821

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

49,454

 

 

 

50,652

 

 

 

152,683

 

 

 

146,589

 

Sales and marketing

 

 

67,112

 

 

 

82,939

 

 

 

207,619

 

 

 

242,164

 

General and administrative

 

 

25,239

 

 

 

26,496

 

 

 

79,778

 

 

 

75,959

 

Total operating expenses

 

 

141,805

 

 

 

160,087

 

 

 

440,080

 

 

 

464,712

 

Loss from operations

 

 

(2,614

)

 

 

(39,233

)

 

 

(34,364

)

 

 

(110,891

)

Interest expense, net

 

 

(1,733

)

 

 

(738

)

 

 

(4,865

)

 

 

(1,141

)

Other (loss) income, net

 

 

(586

)

 

 

(653

)

 

 

1,630

 

 

 

(840

)

Loss before provision for income taxes

 

 

(4,933

)

 

 

(40,624

)

 

 

(37,599

)

 

 

(112,872

)

Provision for income taxes

 

 

351

 

 

 

272

 

 

 

891

 

 

 

1,086

 

Net loss

 

$

(5,284

)

 

$

(40,896

)

 

$

(38,490

)

 

$

(113,958

)

Net loss per share, basic and diluted

 

$

(0.03

)

 

$

(0.28

)

 

$

(0.25

)

 

$

(0.78

)

Weighted-average shares used to compute net loss per share, basic and diluted

 

 

157,465

 

 

 

148,555

 

 

 

154,734

 

 

 

146,997

 

 

 

See notes to condensed consolidated financial statements.

6


 

BOX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

October 31,

 

 

October 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net loss

 

$

(5,284

)

 

$

(40,896

)

 

$

(38,490

)

 

$

(113,958

)

Other comprehensive income (loss)*:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in foreign currency translation adjustment

 

 

(37

)

 

 

(7

)

 

 

135

 

 

 

(83

)

Changes in unrealized loss on cash flow hedge

 

 

115

 

 

 

(51

)

 

 

(1,125

)

 

 

(51

)

Other comprehensive income (loss)

 

 

78

 

 

 

(58

)

 

 

(990

)

 

 

(134

)

Comprehensive loss

 

$

(5,206

)

 

$

(40,954

)

 

$

(39,480

)

 

$

(114,092

)

 

*

Tax effect was not material

See notes to condensed consolidated financial statements.

7


 

BOX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

 

 

 

Nine Months Ended October 31, 2020

 

 

 

Class A Common Stock

 

 

Additional

Paid-In

 

 

Treasury

 

 

Accumulated Other

Comprehensive

 

 

Accumulated

 

 

Total

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

(Loss) Income

 

 

Deficit

 

 

Equity

 

Balance as of January 31, 2020

 

 

150,611

 

 

$

15

 

 

$

1,302,072

 

 

$

(1,177

)

 

$

(307

)

 

$

(1,278,246

)

 

$

22,357

 

Issuance of common stock upon stock option exercises

 

 

222

 

 

 

 

 

 

965

 

 

 

 

 

 

 

 

 

 

 

 

965

 

Stock-based compensation related to stock awards

 

 

 

 

 

 

 

 

42,766

 

 

 

 

 

 

 

 

 

 

 

 

42,766

 

Vesting of restricted stock units, net of shares withheld for employee payroll taxes

 

 

1,331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee payroll taxes withheld related to vesting of restricted stock units

 

 

 

 

 

 

 

 

(10,264

)

 

 

 

 

 

 

 

 

 

 

 

(10,264

)

Common stock issued under employee stock purchase plan

 

 

1,282

 

 

 

 

 

 

11,906

 

 

 

 

 

 

 

 

 

 

 

 

11,906

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,332

)

 

 

 

 

 

(1,332

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(25,550

)

 

 

(25,550

)

Balance as of April 30, 2020

 

 

153,446

 

 

 

15

 

 

 

1,347,445

 

 

 

(1,177

)

 

 

(1,639

)

 

 

(1,303,796

)

 

 

40,848

 

Issuance of common stock upon stock option exercises

 

 

1,377

 

 

 

 

 

 

7,548

 

 

 

 

 

 

 

 

 

 

 

 

7,548

 

Stock-based compensation related to stock awards

 

 

 

 

 

 

 

 

35,767

 

 

 

 

 

 

 

 

 

 

 

 

35,767

 

Vesting of restricted stock units, net of shares withheld for employee payroll taxes

 

 

1,576

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Employee payroll taxes withheld related to vesting of restricted stock units

 

 

 

 

 

 

 

 

(17,180

)

 

 

 

 

 

 

 

 

 

 

 

(17,180

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

264

 

 

 

 

 

 

264

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,656

)

 

 

(7,656

)

Balance as of July 31, 2020

 

 

156,399

 

 

 

16

 

 

 

1,373,580

 

 

 

(1,177

)

 

 

(1,375

)

 

 

(1,311,452

)

 

 

59,592

 

Issuance of common stock upon stock option exercises

 

 

231

 

 

 

 

 

 

1,361

 

 

 

 

 

 

 

 

 

 

 

 

1,361

 

Stock-based compensation related to stock awards

 

 

 

 

 

 

 

 

35,902

 

 

 

 

 

 

 

 

 

 

 

 

35,902

 

Vesting of restricted stock units, net of shares withheld for employee payroll taxes

 

 

1,150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee payroll taxes withheld related to vesting of restricted stock units

 

 

 

 

 

 

 

 

(10,776

)

 

 

 

 

 

 

 

 

 

 

 

(10,776

)

Common stock issued under employee stock purchase plan

 

 

863

 

 

 

 

 

 

6,689

 

 

 

 

 

 

 

 

 

 

 

 

6,689

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78

 

 

 

 

 

 

78

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,284

)

 

 

(5,284

)

Balance as of October 31, 2020

 

 

158,643

 

 

$

16

 

 

$

1,406,756

 

 

$

(1,177

)

 

$

(1,297

)

 

$

(1,316,736

)

 

$

87,562

 

8


 

BOX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

 

 

 

Nine Months Ended October 31, 2019

 

 

 

Class A Common Stock

 

 

Additional

Paid-In

 

 

Treasury

 

 

Accumulated Other

Comprehensive

 

 

Accumulated

 

 

Total

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

Income (Loss)

 

 

Deficit

 

 

Equity

 

Balance as of January 31, 2019

 

 

144,311

 

 

$

14

 

 

$

1,166,443

 

 

$

(1,177

)

 

$

23

 

 

$

(1,133,898

)

 

$

31,405

 

Issuance of common stock upon stock option exercises

 

 

152

 

 

 

 

 

 

1,213

 

 

 

 

 

 

 

 

 

 

 

 

1,213

 

Stock-based compensation related to stock awards

 

 

 

 

 

 

 

 

35,678

 

 

 

 

 

 

 

 

 

 

 

 

35,678

 

Vesting of restricted stock units, net of shares withheld for employee payroll taxes

 

 

1,205

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Employee payroll taxes withheld related to vesting of restricted stock units

 

 

 

 

 

 

 

 

(14,624

)

 

 

 

 

 

 

 

 

 

 

 

(14,624

)

Common stock issued under employee stock purchase plan

 

 

829

 

 

 

 

 

 

13,605

 

 

 

 

 

 

 

 

 

 

 

 

13,605

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

88

 

 

 

 

 

 

88

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(36,828

)

 

 

(36,828

)

Balance as of April 30, 2019

 

 

146,497

 

 

 

15

 

 

 

1,202,315

 

 

 

(1,177

)