Box, Inc. Q1 FY2026 earnings call

• Box had a strong start to FY26 with growth in customer demand for Box AI. Q1 saw revenue growth, RPO growth, and strong billings. - Enterprise Advanced had strong momentum in Q1 with customer adoptions across various industries like a University Hospital, investment advisory firm, and financial services firm. - Announced big AI Agent updates at the Content+AI Summit, including capabilities for Deep Research, Search, and enhanced data extraction, and partnerships with various AI platforms. - Continuing to drive Go-to-Market with Enterprise Advanced momentum across segments and geographies, and expanding the partner ecosystem. - Building an AI-first company internally, using AI-powered Hubs for customer support, onboarding, and other functions, and using AI for coding and customer service.

In Q1 FY26, Box's revenue was $276 million, up 4% year-over-year (5% in constant currency). Suites customers account for 61% of revenue. Remaining performance obligations (RPO) were $1.5 billion, a 21% year-over-year increase. Billings were $242 million, up 27% year-over-year. Gross margin was 80.5%, and operating margin was 25.3%. There were approximately 1,940 total customers paying at least $100,000 annually, up 8% year-over-year.

• Second quarter fiscal 2026 revenue expected to be in the range of $290 million to $291 million, ~8% year-over-year growth at high end, 6% constant currency. Billings expected to be roughly flat Y/Y. Gross margin expected to be ~81%. Non-GAAP operating margin ~28%, non-GAAP EPS $0.30 to $0.31. - Full fiscal year 2026 revenue expected to be in the range of $1.165 billion to $1.17 billion, ~7% Y/Y growth, ~6% constant currency. Billings growth expected to be ~9%. Gross margin expected to be ~81%. Non-GAAP operating margin ~28%. Non-GAAP EPS $1.22 to $1.26.

Q: George Kurosawa asked about demand picture and guidance prudence.

A: Aaron Levie said customer conversations are healthy with AI momentum, and they were prudent with the macro environment.

Q: George Kurosawa asked about billings and RPO growth gap.

A: Dylan Smith said it's due to timing, including early renewals impact.

Q: Jason Ader asked about seat growth.

A: Dylan Smith said pricing is a bigger growth driver, with seats growing but minor, and Enterprise Advanced driving price per seat and use cases.

Q: Michael Funk asked about early renewals and AI margin impact.

A: Aaron Levie said early renewals were from AI adoption, and AI is intended to be margin-neutral.

Q: Lucky Schreiner asked about winning customers from legacy ECM and market awareness.

A: Aaron Levie said they're winning customers with partner help and are at the center of AI innovation.

Q: Josh Baer asked about platform revenue and early renewals.

A: Aaron Levie said early AI unit adoption is early, and Dylan Smith said they assume some early renewals.

Q: Pinjalim Bora asked about AI integration and billings guidance.

A: Aaron Levie talked about AI integration philosophy, and Dylan Smith said constant currency billings guidance is adjusted for prudence.

Q: Brian Peterson asked about federal vertical trends.

A: Aaron Levie said FedRAMP High helps federal side, but environment is dynamic.