Box beats Q2 estimates and raises full-year revenue guidance to $1.29 billion, as strong enterprise adoption and improved cash flow conversion offset concerns regarding AI infrastructure costs.
Box beat Q2 FY27 estimates, raised full-year revenue guidance, and improved FCF margin, indicating a bullish outlook despite valuation near historical mean.
Box reported strong Q2 FY27 results, with revenue reaching $321.1 million and billings jumping 17%. The company raised its full-year revenue guidance to $1.29 billion, driven by the success of its Enterprise Advanced tier and improved net retention of 106%. Despite concerns over AI-related gross margin pressure, free cash flow margins showed significant year-over-year improvement, signaling robust operational health.
Management expects gross margins to soften to approximately 80% due to persistent AI compute costs and constrained public cloud capacity.