Box, Inc. today announced preliminary financial results for the third quarter of fiscal year 2025, which ended October 31, 2024. The company reported revenue of $276 million, a 5% increase year-over-year, or 6% in constant currency, landing at the high end of its guidance. Non-GAAP net income per share was $0.45, exceeding the high end of guidance of $0.42.
Operational highlights included record gross margin of 81.9%, up 560 basis points year-over-year, and a record non-GAAP operating margin of 29.1%, an increase of 440 basis points from a year ago. Remaining Performance Obligations (RPO) grew 13% year-over-year to $1.3 billion, or 14% in constant currency, driven by improved customer contract durations. Billings were $265 million, up 4% year-over-year, or 3% in constant currency, impacted by a 100 basis point foreign exchange headwind.
The company's net retention rate remained stable at 102%, and the annualized full churn rate was 3%. Box repurchased approximately $140 million of its outstanding convertible notes due in calendar 2026 and successfully raised $460 million through a convertible debt offering in September. The company's focus on operational discipline and investments in its Intelligent Content Management platform, including Box AI, contributed to these results.
Box's Q3 Suites attach rate in large deals was 83%, an improvement from 79% in Q3 of last year, with Suites customers now representing 59% of total revenue. The company anticipates exiting FY25 with a net retention rate of roughly 102%. The outlook for Q4 FY25 includes expected revenue between $279 million and $280 million, and non-GAAP EPS between $0.41 and $0.42.
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