Box (BOX) Q1 2027 earnings summary

Executive summary

• Revenue grew 11% year-over-year to $305.9 million in Q1 FY27, driven by strong adoption of intelligent workflow and AI-powered solutions, with Suites and Enterprise Advanced contributing significantly.

• Net retention rate improved to 105%, reflecting higher seat growth, price expansion, and strong customer expansion.

• Record Q1 bookings, robust customer expansion in key verticals, and recognition as a leader in the 2026 Gartner Magic Quadrant for Document Management.

• Billings increased 5% year-over-year to $255.4 million, with RPO at $1.6 billion, up 12% year-over-year, supporting future revenue visibility.

• Free cash flow reached $128 million, with strong liquidity and continued share repurchases.

Financial highlights

• Q1 FY27 revenue was $305.9 million, up 11% year-over-year, with non-GAAP gross margin at 81.5% and GAAP gross margin at 79.5%.

• Non-GAAP operating margin expanded to 27.7%, while GAAP operating margin rose to 9.0%.

• EPS for Q1 was $0.37 non-GAAP and $0.08 GAAP, both above prior year levels.

• Cash, cash equivalents, and investments totaled $479 million at quarter end.

• Billings totaled $255.4 million, up 5% year-over-year; non-GAAP free cash flow was $127.7 million, up 8%.

Outlook and guidance

• Q2 FY27 revenue expected at $319 million (9% year-over-year growth), with non-GAAP operating margin of 28.5%.

• FY27 revenue guidance raised to $1.28 billion (9% year-over-year growth), with non-GAAP operating margin of 28%.

• FY27 non-GAAP EPS expected at $1.56, GAAP EPS at $0.40, both including FX headwinds.

• Net retention rate projected at 105% exiting the year.

• Management expects continued investment in product innovation, AI integration, and international expansion.