Box Inc (BOX) 2024 Q1 法說會逐字稿

完整原文

使用警語:中文譯文來源為 Google 翻譯,僅供參考,實際內容請以英文原文為主

  • Operator

    Operator

  • Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Box, Inc. First Quarter 2024 Earnings Conference Call. (Operator Instructions) Thank you. Cynthia Hiponia, Head of IR, you may begin your conference.

    下午好。我叫艾瑪,今天我將擔任你們的會議接線員。此時,我想歡迎大家參加 Box, Inc. 2024 年第一季度收益電話會議。 (操作員說明)謝謝。 IR 主管 Cynthia Hiponia,您可以開始您的會議了。

  • Cynthia Hiponia - VP of IR

    Cynthia Hiponia - VP of IR

  • Good afternoon, and welcome to Box's First Quarter Fiscal Year 2024 Earnings Conference Call. I'm Cynthia Hiponia, Vice President of Investor Relations. On the call today, we have Aaron Levie, Box Co-Founder and CEO; and Dylan Smith, Box Co-Founder and CFO.

    下午好,歡迎來到 Box 的 2024 財年第一季度收益電話會議。我是投資者關係副總裁 Cynthia Hiponia。在今天的電話會議上,我們有 Box 聯合創始人兼首席執行官 Aaron Levie;和 Dylan Smith,Box 聯合創始人兼首席財務官。

  • Following our prepared remarks, we will take your questions. Today's call is being webcast and will also be available for a replay on our Investor Relations website at box.com/investors. Our webcast will be audio only. However, supplemental slides are now available for download from our website. We'll also post the highlights of today's call on Twitter at the handle @BoxIncIR. On this call, we will be making forward-looking statements, including our second quarter and full year fiscal 2024 financial guidance and our expectations regarding our financial performance for fiscal 2024 and future periods, including our free cash flow, gross margins, operating margins, operating leverage, future profitability, net retention rate, remaining performance obligations, revenue and billings, and the impact of foreign currency exchange rates and our expectations regarding the size of our market opportunity, our planned investments, future product offerings and growth strategies, our ability to achieve our revenue, operating margins and other operating model targets, the timing and market adoption of the benefits from our new products, pricing models and partnerships, our ability to address enterprise challenges and deliver cost savings to our customers, the impact of the macro environment on our business and operating results, and our capital allocation strategies, including potential repurchase of our common stock.

    在我們準備好的評論之後,我們將回答您的問題。今天的電話會議正在進行網絡直播,也可以在我們的投資者關係網站 box.com/investors 上重播。我們的網絡廣播將僅為音頻。但是,現在可以從我們的網站下載補充幻燈片。我們還將通過@BoxIncIR 將今天電話會議的亮點發佈在 Twitter 上。在這次電話會議上,我們將做出前瞻性陳述,包括我們第二季度和全年的 2024 財年財務指導以及我們對 2024 財年和未來期間財務業績的預期,包括我們的自由現金流、毛利率、營業利潤率、經營槓桿、未來盈利能力、淨保留率、剩餘履約義務、收入和賬單、外幣匯率的影響以及我們對市場機會規模的預期、我們計劃的投資、未來產品供應和增長戰略、我們的能力實現我們的收入、營業利潤率和其他運營模式目標,我們的新產品、定價模式和合作夥伴關係帶來的好處的時機和市場採用,我們應對企業挑戰和為客戶節省成本的能力,宏觀的影響環境對我們的業務和經營業績,以及我們的資本配置策略,包括我們普通股的潛在回購。

  • These statements reflect our best judgment based on the factors currently known to us, and actual events or results may differ materially. Please refer to our earnings press release filed today and the risk factors and documents we filed with the Securities and Exchange Commission, including our most recent annual report on Form 10-K for information on risks and uncertainties that may cause actual results to differ materially from statements made on this earnings call.

    這些陳述反映了我們根據我們目前已知的因素做出的最佳判斷,實際事件或結果可能存在重大差異。請參閱我們今天提交的收益新聞稿以及我們向證券交易委員會提交的風險因素和文件,包括我們最近的 10-K 表格年度報告,了解可能導致實際結果與實際結果大不相同的風險和不確定性信息在本次財報電話會議上發表的聲明。

  • These forward-looking statements are made as of today, May 30, 2023, and we disclaim any obligation to update or revise them should they change or cease to be up to date. In addition, during today's call, we will discuss our non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from our GAAP results. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP results in our earnings press release and the related supplemental slides, which can be found on the Investor Relations page of our website. Unless otherwise indicated, all references to financial measures are on a non-GAAP basis.

    這些前瞻性陳述是在今天,即 2023 年 5 月 30 日作出的,如果它們發生變化或不再是最新的,我們不承擔任何更新或修改它們的義務。此外,在今天的電話會議中,我們將討論我們的非 GAAP 財務措施。這些非 GAAP 財務措施應作為我們 GAAP 結果的補充,而不是替代或孤立於我們的 GAAP 結果。您可以在我們的收益新聞稿和相關補充幻燈片中找到有關這些非 GAAP 措施的額外披露,包括與可比較的 GAAP 結果的對賬,這些可以在我們網站的投資者關係頁面上找到。除非另有說明,否則所有提及的財務指標均基於非公認會計原則。

  • With that, let me hand it over to Aaron.

    有了這個,讓我把它交給亞倫。

  • Aaron Levie - Co-Founder, CEO & Director

    Aaron Levie - Co-Founder, CEO & Director

  • Thank you, Cynthia, and thanks, everyone, for joining us today. We are pleased to deliver first quarter operating results above our guidance. This includes revenue growth of 6% year-over-year and 10% on a constant currency basis. In addition to a strong focus on profitability, resulting in operating margin of 23%, up 220 basis points from a year ago.

    謝謝你,辛西婭,也感謝大家今天加入我們。我們很高興第一季度的經營業績高於我們的指導。這包括收入同比增長 6%,按固定匯率計算收入增長 10%。除了對盈利能力的高度關注外,營業利潤率為 23%,比一年前上升 220 個基點。

  • Achieving these results in a challenging macro environment is a testament to the value of our Content Cloud platform and the operational discipline of our Boxers as we deliver substantial year-over-year bottom line improvements. While the dynamic macro economy continues to pressure IT spend and headcount growth expectations from our customers, trends we've seen continue to play out most notably in EMEA and smaller businesses in the U.S. We are also seeing strong traction and stickiness of our platform and customers, and our message is well aligned to the challenges they're facing today.

    在充滿挑戰的宏觀環境中取得這些成果證明了我們的內容雲平台的價值和我們 Boxers 的運營紀律,因為我們實現了實質性的同比利潤改進。雖然充滿活力的宏觀經濟繼續對我們客戶的 IT 支出和員工增長預期施加壓力,但我們看到的趨勢繼續在 EMEA 和美國的小型企業中發揮最為顯著的作用。我們還看到我們的平台和客戶具有強大的牽引力和粘性,我們的信息與他們今天面臨的挑戰非常吻合。

  • Over the last quarter, I've had the opportunity to speak with hundreds of business and technology leaders, and it's clear that the dynamics enterprises face today are fully aligned with the pillars that underpin our strategy. Enterprises are focused on simplifying their IT environment, driving productivity across their businesses and protecting their most sensitive data. And across nearly all of my conversations in the last quarter, business leaders everywhere are looking to leverage the power of AI to help transform how they work and get even more value out of their data. Box's Content Cloud platform is best positioned to help these customers solve these challenges. And our Q1 customer wins illustrate how we will remain mission-critical for them.

    在上個季度,我有機會與數百名商業和技術領導者交談,很明顯,企業今天面臨的動態與支撐我們戰略的支柱完全一致。企業專注於簡化他們的 IT 環境,提高整個企業的生產力並保護他們最敏感的數據。在我上個季度幾乎所有的談話中,各地的商業領袖都在尋求利用人工智能的力量來幫助轉變他們的工作方式,並從他們的數據中獲得更多價值。 Box 的內容雲平台最適合幫助這些客戶解決這些挑戰。我們在第一季度贏得的客戶說明了我們將如何保持對他們的關鍵任務。

  • These wins include a global manufacturing company that collaborates with defense and federal government agencies, who is a new customer who purchased Box in Q1 in order to meet FedRAMP and ITAR compliance for content management. Also realizing the value to streamline its tech stack and integrate Box with its sales force instance to power the underlying compliant content layer for their customer portal. A multinational retailer expanded its use of Box with a 6-figure ramped enterprise license agreement and purchase of Box Shield to protect the vast amount of personal identifiable information that is stored inside a Box. And critical to our success is our continued execution of our product road map, which expands our TAM and adds value to our core platform with new product innovation.

    這些勝利包括一家與國防和聯邦政府機構合作的全球製造公司,該公司是在第一季度購買 Box 的新客戶,目的是滿足內容管理的 FedRAMP 和 ITAR 合規性要求。還意識到簡化其技術堆棧並將 Box 與其銷售人員實例集成以為其客戶門戶的底層合規內容層提供支持的價值。一家跨國零售商通過 6 位數的企業許可協議和購買 Box Shield 擴大了 Box 的使用範圍,以保護存儲在 Box 中的大量個人身份信息。我們成功的關鍵是我們繼續執行我們的產品路線圖,這擴大了我們的 TAM 並通過新產品創新為我們的核心平台增加了價值。

  • In Q1, we were pleased to announce the general availability of Box Canvas, which delivers a powerful new way for teams to unleash their creativity to take brainstorming and ideation to a new level while leveraging the enterprise-grade security, compliance and workflow automation capabilities of Box. Box customers now have access to unlimited Canvas' included in their plans, which enables us to disruptively enter this market, and we're already seeing amazing use cases emerge across our customers. Since we launched Box Sign, Box customers are taking advantage of unlimited e-signatures included in their plans, and have migrated use cases over from costly incumbents. In Q1, we released advanced e-signature features such as a dedicated Box Sign policy for Box Shield to provide users with the ability to seamlessly request signatures on documents, subject to Box Shield access policies. We also launched a Box Sign relay integration that specifically enables post-signature actions to be orchestrated and enables our customers to build end-to-end e-signature workflows in the Content Cloud. We also announced the next generation of Box's content migration solution, Box Shuttle, now built directly into the Box Admin Console. With Box Shuttle, content migration is a simple, accessible process and that organizations of all sizes can take full advantage of the many features and capabilities that the Content Cloud has to offer.

    在第一季度,我們很高興地宣布全面推出 Box Canvas,它為團隊提供了一種強大的新方式來釋放他們的創造力,將頭腦風暴和構思提升到一個新的水平,同時利用 Box Canvas 的企業級安全性、合規性和工作流自動化功能盒子。 Box 客戶現在可以訪問他們計劃中包含的無限 Canvas,這使我們能夠顛覆性地進入這個市場,而且我們已經看到客戶中出現了驚人的用例。自從我們推出 Box Sign 以來,Box 客戶正在利用他們計劃中包含的無限電子簽名,並將用例從昂貴的現有企業遷移過來。在第一季度,我們發布了高級電子簽名功能,例如 Box Shield 的專用 Box Sign 策略,使用戶能夠根據 Box Shield 訪問策略無縫請求文檔簽名。我們還推出了 Box Sign 中繼集成,專門用於協調簽名後操作,並使我們的客戶能夠在 Content Cloud 中構建端到端的電子簽名工作流程。我們還宣布了下一代 Box 的內容遷移解決方案 Box Shuttle,現在直接內置到 Box 管理控制台中。使用 Box Shuttle,內容遷移是一個簡單易用的過程,各種規模的組織都可以充分利用 Content Cloud 必須提供的許多特性和功能。

  • Finally, an integral part of the product strategy is our ability to integrate deeply across the SaaS landscape, including with products like Microsoft Teams and Office, WebEx, Zoom, Google Workspace, ServiceNow, ITSM's technology solutions and much more. In Q1, in addition to delivering integration enhancements with Slack and Salesforce, we were pleased to announce a number of new technology partners that extend the value of Box including Notion, Sona, [NowerBites] and Cloudflare. As we look forward into FY '24 and beyond, our pace of innovation continues to accelerate. We are at the beginning stages of a new era of software. Similar to how cloud and mobile changed the technology landscape forever, AI has the opportunity to completely change how work is done. As highlighted by the meteoric rise of ChatGPT, we've recently begun to see a huge breakthrough in the potential of large language models or LLMs, which are now capable of bringing human level reasoning to a large number of tasks. However, the real power of these new AI models is when you use their intelligence to help you work securely with your own proprietary data set. For years, we've been able to ask questions about our structured data like the information that's in a database ERP system or CRM system.

    最後,產品戰略的一個組成部分是我們在 SaaS 領域進行深度集成的能力,包括與 Microsoft Teams 和 Office、WebEx、Zoom、Google Workspace、ServiceNow、ITSM 的技術解決方案等產品的集成。在第一季度,除了提供與 Slack 和 Salesforce 的集成增強功能外,我們還很高興地宣布了一些擴展 Box 價值的新技術合作夥伴,包括 Notion、Sona、[NowerBites] 和 Cloudflare。展望 24 財年及以後,我們的創新步伐將繼續加快。我們正處於軟件新時代的開始階段。與雲和移動如何永遠改變技術格局類似,人工智能有機會徹底改變工作方式。正如 ChatGPT 的迅速崛起所強調的那樣,我們最近開始看到大型語言模型或 LLM 潛力的巨大突破,它們現在能夠將人類水平的推理帶入大量任務。然而,當您使用它們的智能來幫助您安全地使用您自己的專有數據集時,這些新 AI 模型的真正力量就在於此。多年來,我們一直能夠詢問有關結構化數據的問題,例如數據庫 ERP 系統或 CRM 系統中的信息。

  • You can ask those systems for financial forecasts, sales pipeline results, inventory levels, supply chain details and more. But we had limited ability to ask questions of our unstructured data like content which is 80% of corporate data. And now we can, by safely bringing leading AI models to enterprise data. Enterprises can truly unlock the value that lies in their content. To do this, we need a way to connect these models safely, securely and compliantly to our enterprise content. As we announced just earlier this month, with Box AI, we're taking the power of the world's leading AI models starting initially with OpenAIs ChatGPT 3.5 and GPT4 and securely letting customers leverage them for their enterprise content. With Box AI, customers can ask questions of their content or generate new information leveraging Box Notes. Imagine being able to instantly ask things like how many days of parental leave can I take on an HR document or please summarize this report and provide 5 key takeaways on a quarterly earnings document or how would you pitch this product to a customer in the automotive industry when looking at a product overview document. But this is just the beginning. Ultimately, as a core platform capability, Box AI will be used throughout the product to continue to transform how we work with our content in a variety of ways.

    您可以向這些系統詢問財務預測、銷售渠道結果、庫存水平、供應鏈詳細信息等。但是我們對我們的非結構化數據提出問題的能力有限,例如占公司數據 80% 的內容。現在我們可以安全地將領先的 AI 模型引入企業數據。企業可以真正釋放其內容中的價值。為此,我們需要一種方法來將這些模型安全、可靠且合規地連接到我們的企業內容。正如我們本月早些時候宣布的那樣,通過 Box AI,我們將從 OpenAI 的 ChatGPT 3.5 和 GPT4 開始,利用世界領先的人工智能模型的力量,讓客戶安全地利用它們來獲取企業內容。借助 Box AI,客戶可以就其內容提出問題或利用 Box Notes 生成新信息。想像一下,能夠立即詢問諸如我可以在人力資源文件中休多少天的育兒假,或者請總結這份報告並在季度收益文件中提供 5 個關鍵要點,或者您將如何向汽車行業的客戶推銷該產品查看產品概述文檔時。但這僅僅是開始。最終,作為核心平台功能,Box AI 將在整個產品中使用,以繼續改變我們以各種方式處理內容的方式。

  • We can imagine in the future being able to use AI to automatically classify content in even more specific ways, automatically extract data using a relay workflow, platform APIs to interact with AI models from a variety of providers and being able to ask questions of a larger set of documents on a specific topic. And as a platform-neutral vendor, we will also be AI neutral, which means as new AI breakthroughs emerge for more vendors over time, we'll be in a position to bring the full power of their technology to Box and our customers.

    我們可以想像在未來能夠使用 AI 以更具體的方式自動對內容進行分類,使用中繼工作流自動提取數據,平台 API 與來自各種提供商的 AI 模型進行交互,並能夠提出更大範圍的問題關於特定主題的一組文檔。作為平台中立的供應商,我們也將保持 AI 中立,這意味著隨著時間的推移,更多供應商會出現新的 AI 突破,我們將能夠將他們技術的全部力量帶給 Box 和我們的客戶。

  • In addition to our collaboration with OpenAI, we recently announced that we are building on our strategic partnership with Google Cloud to integrate Google's advanced AI models into Box AI to create new ways for joint customers to work smarter and more productively with generative AI. Like any new technology era, our approach with Box AI is to execute on this opportunity with a high degree of thoughtfulness. Initial customer access will be granted through a design partner program and we are excited to keep you updated as we continue to innovate with Box AI to capitalize on the exciting new product opportunities this technology shift has created.

    除了與 OpenAI 的合作之外,我們最近還宣布,我們正在與 Google Cloud 建立戰略合作夥伴關係,將 Google 的高級 AI 模型集成到 Box AI 中,從而為共同客戶創造新的方式,使他們能夠更智能、更高效地使用生成式 AI 進行工作。與任何新技術時代一樣,我們使用 Box AI 的方法是以高度的深思熟慮來抓住這個機會。初始客戶訪問權限將通過設計合作夥伴計劃授予,我們很高興為您提供最新信息,因為我們將繼續使用 Box AI 進行創新,以利用這一技術轉變創造的令人興奮的新產品機會。

  • Now turning to go-to-market. As we discussed at our Analyst Day in March, our optimized pricing and packaging initiatives have allowed us to see a greater total account value, higher net retention, higher gross margins and a more efficient sales process. Our strategy is to continue launching new multiproduct offerings over time, increasing the value to our customers by bringing them the full power of the Content Cloud. Our latest multiproduct offering, Enterprise Plus continues to be well over 90% of our suite sales in large deals, with suites comprising 69% of deals over $100,000 in Q1.

    現在轉向上市。正如我們在 3 月份的分析師日討論的那樣,我們優化的定價和包裝計劃使我們能夠看到更高的總賬戶價值、更高的淨保留率、更高的毛利率和更高效的銷售流程。我們的戰略是隨著時間的推移繼續推出新的多產品產品,通過為客戶提供內容雲的全部功能來增加他們的價值。我們最新的多產品產品 Enterprise Plus 繼續佔據大宗交易套件銷售額的 90% 以上,其中套件佔第一季度超過 100,000 美元的交易的 69%。

  • We saw consistent suite attach rates in large deals across all of our geographies. Our Q1 customer expansions and new wins with Enterprise Plus include a U.S. company that develops and produces building materials and services expanded its use of Box with a 6-figure renewal and purchase of Enterprise Plus to gain the benefits of Shield and Box Governance. As more and more data is migrated into Box from old SharePoint sites and file servers, it was necessary for the company to implement the advanced security and compliance controls that Enterprise Plus provides. A leading U.S. hospital system and research institute expanded its use of Box in Q1 with an upgrade to Enterprise Plus in order to enable Box Sign for their clinical trials. Box' security posture is also a critical component to their technology ecosystem.

    我們在所有地區的大宗交易中都看到了一致的套件附加率。我們第一季度的客戶擴展和 Enterprise Plus 的新勝利包括一家開發和生產建築材料和服務的美國公司通過 6 位數的續訂和購買 Enterprise Plus 擴大了 Box 的使用,以獲得 Shield 和 Box Governance 的好處。隨著越來越多的數據從舊的 SharePoint 站點和文件服務器遷移到 Box,公司有必要實施 Enterprise Plus 提供的高級安全性和合規性控制。美國一家領先的醫院系統和研究機構在第一季度通過升級到 Enterprise Plus 擴大了 Box 的使用範圍,以便為其臨床試驗啟用 Box Sign。 Box 的安全態勢也是其技術生態系統的重要組成部分。

  • In summary, our ability to deliver first quarter results above our guidance is a direct result of the compelling value of our Content Cloud platform and the execution we have been driving as a company. And with our latest Box AI efforts, we're building a powerful, platform-neutral approach for companies to securely bring AI to their content and transform how they work. I'm proud of the work that our Boxers do globally and at Box, our employees are critical to our ability to serve our customers successfully and innovate rapidly. In addition to being named #2 Best Place to Work by Glassdoor last quarter, Box was recently recognized by Fortune Magazine as #27 in the 100 best companies to work for in 2023.

    總而言之,我們能夠提供高於我們指導的第一季度業績是我們內容雲平台引人注目的價值和我們作為一家公司一直在推動的執行的直接結果。通過我們最新的 Box AI 工作,我們正在構建一種強大的、平台中立的方法,讓公司能夠安全地將 AI 引入他們的內容並改變他們的工作方式。我為我們的 Boxers 在全球和 Box 所做的工作感到自豪,我們的員工對於我們成功服務客戶和快速創新的能力至關重要。除了上個季度被 Glassdoor 評為最佳工作場所第 2 名外,Box 最近還被《財富》雜誌評為 2023 年 100 家最佳工作公司中的第 27 名。

  • Finally, along with continuing to build out a strong culture, we remain steadfastly committed to driving a continued balance of growth and increased profitability in this very dynamic market while investing in growth drivers for the future, like Box AI. While currency headwinds and the IT spend environment are putting pressure on our top line results for this year, we continue to drive improved bottom line results through a culture of operational excellence and focused discipline on our spending while doubling down on new product development that will lead us to increasing long-term revenue growth.

    最後,在繼續打造強大的文化的同時,我們仍然堅定地致力於在這個充滿活力的市場中推動增長和盈利能力的持續平衡,同時投資於未來的增長動力,如 Box AI。雖然貨幣逆風和 IT 支出環境對我們今年的營收造成壓力,但我們繼續通過卓越運營文化和專注於我們的支出的紀律來推動改善利潤結果,同時加倍開發新產品,這將引領我們增加長期收入增長。

  • And with that, let me hand it off to Dylan.

    就這樣,讓我把它交給迪倫。

  • Dylan Smith - Co-Founder & CFO

    Dylan Smith - Co-Founder & CFO

  • Thanks, Aaron. Good afternoon, everyone, and thank you for joining us. Q1 was another strong quarter for Box with revenue, EPS and operating margin results all above the high end of guidance despite the challenging macroeconomic environment. We continued investing in profitable growth while optimizing our underlying cost structure, resulting in a resilient long-term financial model. Our balanced business model allows us to invest in innovative new products such as Box Canvas and Box AI generate continued gross margin and operating leverage and consistently return capital to our shareholders.

    謝謝,亞倫。大家下午好,感謝您加入我們。儘管宏觀經濟環境充滿挑戰,但第一季度是 Box 的又一個強勁季度,其收入、每股收益和營業利潤率結果均高於指導的高端。我們繼續投資於盈利增長,同時優化我們的基本成本結構,從而形成一個有彈性的長期財務模型。我們平衡的商業模式使我們能夠投資創新的新產品,如 Box Canvas 和 Box AI,從而產生持續的毛利率和經營槓桿,並持續向股東返還資本。

  • In Q1, we delivered revenue of $252 million, up 6% year-over-year, above the high end of our guidance and representing 10% year-over-year growth on a constant currency basis. We now have nearly 1,680 total customers paying more than $100,000 annually, an increase of 14% year-over-year. Our suites attach rate of 69% in large Q1 deals demonstrates the value our Content Cloud platform is delivering to our large customers. 47% of our revenue is now attributable to suites customers, a significant 10-point increase from 37% a year ago. Even in this dynamic environment, Box's value proposition is resonating with customers as they look to Box to transform, simplify and secure their IT environment. We ended Q1 with remaining performance obligations, or RPO, of $1.2 billion, a 17% year-over-year increase or 19% growth on a constant currency basis. This strong growth was driven by continued lengthening in customer contract durations as well as an uptick in the volume of early renewals in recent quarters as customers look to more quickly adopt the full value of our suites offerings. We expect to recognize roughly 60% of our RPO over the next 12 months.

    第一季度,我們實現了 2.52 億美元的收入,同比增長 6%,高於我們指導的上限,按固定匯率計算同比增長 10%。我們現在有近 1,680 名客戶每年支付超過 100,000 美元,同比增長 14%。在第一季度的大型交易中,我們的套件附加率為 69%,證明了我們的內容雲平台為我們的大客戶提供的價值。現在,我們 47% 的收入來自套房客戶,比一年前的 37% 顯著增加了 10 個百分點。即使在這種動態環境中,Box 的價值主張也引起了客戶的共鳴,因為他們希望 Box 能夠轉變、簡化和保護他們的 IT 環境。我們在第一季度末的剩餘履約義務 (RPO) 為 12 億美元,同比增長 17% 或按固定匯率計算增長 19%。這一強勁增長的推動因素是客戶合同期限的持續延長以及最近幾個季度提前續約數量的增加,因為客戶希望更快地利用我們套房產品的全部價值。我們預計在未來 12 個月內確認大約 60% 的 RPO。

  • Q1 billings of $192 million grew 11% year-over-year, ahead of our guidance of a mid-single-digit growth rate and representing 15% growth in constant currency. Our strong billings outcome in Q1 was due in large part to a high volume of early renewals, pulling forward billings of roughly $6 million that had been scheduled to renew later in the year.

    第一季度的營業額為 1.92 億美元,同比增長 11%,高於我們對中個位數增長率的指導,按固定匯率計算增長 15%。我們在第一季度的強勁賬單結果在很大程度上是由於大量的早期續約,將原定於今年晚些時候續約的約 600 萬美元的賬單提前。

  • Our net retention rate at the end of Q1 was 106%, in line with our expectations. Our annualized full churn rate was 3% versus 4% in the prior year, demonstrating the criticality and stickiness of our product offerings even in the current environment. We expect full churn to remain at roughly 3% throughout this year. For the remainder of FY '24, we expect our net retention rate to stabilize in the range of 104% to 105% as we manage through the macroeconomic environment, resulting in lower seat expansion rates, particularly in our U.S. commercial and EMEA customers. Gross margin came in at 77.9% in Q1, up 160 basis points from 76.3% a year ago and well above the 76% range we had expected for the first half of this year.

    我們在第一季度末的淨保留率為 106%,符合我們的預期。我們的年化完全流失率為 3%,而上一年為 4%,這表明即使在當前環境下,我們的產品也很重要和具有粘性。我們預計今年全年的總流失率將保持在 3% 左右。對於 24 財年的剩餘時間,我們預計我們的淨保留率將穩定在 104% 至 105% 的範圍內,因為我們在宏觀經濟環境中進行管理,從而導致較低的席位擴張率,特別是在我們的美國商業和 EMEA 客戶中。第一季度的毛利率為 77.9%,比一年前的 76.3% 高出 160 個基點,遠高於我們今年上半年預期的 76% 區間。

  • Our Q1 gross margin reflects the optimizations we're delivering as we execute on our public cloud migration strategy. We expect our duplicative public cloud and data center expenses to peak in Q2 leading to our gross margin expectations in the 76% range for Q2.

    我們第一季度的毛利率反映了我們在執行公共雲遷移戰略時提供的優化。我們預計我們重複的公共雲和數據中心費用將在第二季度達到頂峰,從而使我們對第二季度的毛利率預期在 76% 的範圍內。

  • As we look to the second half of the year, we fully expect gross margins to rebound to the high 70s. Q1 gross profit of $196 million was up 8% year-over-year, exceeding our revenue growth rate by 200 basis points. We once again delivered leverage across the entire business in Q1 with a 17% increase in operating income to $57 million. Our 22.8% operating margin was up 220 basis points from the 20.6% delivered a year ago. We delivered diluted non-GAAP EPS of $0.32 in Q1, up 39% from $0.23 a year ago and a full $0.05 above the high end of our guidance which includes an impact of negative $0.05 from FX. I would also note that Q1 marked the third consecutive quarter in which we delivered GAAP profitability.

    展望下半年,我們完全預計毛利率將反彈至 70 多歲的高位。第一季度的毛利潤為 1.96 億美元,同比增長 8%,比我們的收入增長率高出 200 個基點。我們在第一季度再次對整個業務發揮了槓桿作用,營業收入增長了 17%,達到 5700 萬美元。我們 22.8% 的營業利潤率比一年前的 20.6% 提高了 220 個基點。我們在第一季度交付了 0.32 美元的稀釋非 GAAP 每股收益,比一年前的 0.23 美元增長了 39%,比我們指導的高端高出整整 0.05 美元,其中包括來自外彙的負 0.05 美元的影響。我還要指出,第一季度是我們連續第三個季度實現 GAAP 盈利。

  • I'll now turn to our cash flow and balance sheet. In Q1, we generated free cash flow of $108 million, a 19% increase from $91 million in the year ago period. We delivered cash flow from operations of $125 million, a 16% increase from $108 million in the year ago period. Capital lease payments, which we included in our free cash flow calculation, were $10 million, down from $12 million in Q1 of last year.

    我現在將轉向我們的現金流量和資產負債表。第一季度,我們產生了 1.08 億美元的自由現金流,比去年同期的 9100 萬美元增長了 19%。我們交付了 1.25 億美元的運營現金流,比去年同期的 1.08 億美元增長了 16%。我們包括在自由現金流計算中的資本租賃付款為 1000 萬美元,低於去年第一季度的 1200 萬美元。

  • Let's now turn to our capital allocation strategy. We ended the quarter with $518 million in cash, cash equivalents, restricted cash and short-term investments. In Q1, we repurchased 1.7 million shares for approximately $44 million. As of April 30, 2023, we had approximately $97 million of remaining buyback capacity under our current share repurchase plan. We remain very committed to returning capital to our shareholders through stock repurchases, and we expect to actively repurchase additional shares in Q2.

    現在讓我們轉向我們的資本配置策略。本季度末,我們擁有 5.18 億美元的現金、現金等價物、受限制的現金和短期投資。第一季度,我們以大約 4400 萬美元的價格回購了 170 萬股股票。截至 2023 年 4 月 30 日,根據我們當前的股票回購計劃,我們還有大約 9700 萬美元的剩餘回購能力。我們仍然非常致力於通過股票回購向股東返還資本,我們預計將在第二季度積極回購更多股票。

  • With that, I would like to turn to our guidance for Q2 and fiscal 2024. The U.S. dollar has continued to strengthen, resulting in a larger-than-expected FX headwind for Q2 and the second half of the year versus our initial FY '24 guidance. As a reminder, approximately 1/3 of our revenue is generated outside of the U.S., primarily in Japanese yen. The following guidance includes the expected impact of FX headwinds, assuming current exchange rates.

    有了這個,我想談談我們對第二季度和 2024 財年的指導。美元繼續走強,導致第二季度和今年下半年的外匯逆風比我們最初的 '24 財年大指導。提醒一下,我們大約 1/3 的收入來自美國境外,主要以日元計價。假設當前匯率,以下指導包括外匯逆風的預期影響。

  • For the second quarter of fiscal 2024, we anticipate revenue in the range of $260 million to $262 million, representing 7% year-over-year growth at the high end of this range or 11% in constant currency. We expect our Q2 billings growth rate in the low single-digit range on an as-reported basis reflecting an expected 100 basis point headwind from FX as well as the impact of the early renewals that contributed to our exceptionally strong Q1 billings results. We once again expect our Q2 RPO growth to be higher than our anticipated Q2 revenue growth rate.

    對於 2024 財年第二季度,我們預計收入在 2.6 億美元至 2.62 億美元之間,在此範圍的高端同比增長 7%,按固定匯率計算增長 11%。我們預計我們的第二季度賬單增長率在報告的基礎上處於較低的個位數範圍內,反映了來自外彙的預期 100 個基點逆風以及導致我們異常強勁的第一季度賬單結果的早期續約的影響。我們再次預計我們第二季度的 RPO 增長將高於我們預期的第二季度收入增長率。

  • We expect our non-GAAP operating margin to increase to approximately 24%, representing a 230 basis point improvement year-over-year. We expect our non-GAAP EPS to be in the range of $0.34 to $0.35, representing a 25% year-over-year increase at the high end of the range and GAAP EPS to be in the range of $0.01 to $0.02. Weighted average diluted shares are expected to be approximately $150 million, flat with Q1. Our Q2 GAAP and non-GAAP EPS guidance includes an expected headwind from FX of approximately $0.05, primarily due to fluctuations in the yen as discussed previously for the full fiscal year ending January 31, 2024. We now expect FY '24 revenue in the range of $1.045 billion to $1.055 billion representing 6% year-over-year growth or 10% on a constant currency basis. This revised range reflects both the recent strengthening of the U.S. dollar versus the yen and the IT spending environment we discussed earlier. We now expect FX to have a negative 350 basis point impact to our FY '24 revenue growth rate versus our prior expectation of 300 basis points. We expect FY '24 gross margin to be roughly 77.5%, 50 basis points above our previous expectations.

    我們預計我們的非 GAAP 營業利潤率將增至約 24%,同比提高 230 個基點。我們預計我們的非 GAAP 每股收益將在 0.34 美元至 0.35 美元之間,較上年同期增長 25%,而 GAAP 每股收益將在 0.01 美元至 0.02 美元之間。加權平均攤薄後的股份預計約為 1.5 億美元,與第一季度持平。我們的第二季度 GAAP 和非 GAAP 每股收益指引包括來自外彙的預期阻力約為 0.05 美元,這主要是由於之前討論的截至 2024 年 1 月 31 日的整個財政年度的日元波動。我們現在預計 24 財年的收入在該範圍內10.45 億美元至 10.55 億美元,同比增長 6% 或按固定匯率計算增長 10%。這一修正範圍反映了近期美元兌日元的走強以及我們之前討論的 IT 支出環境。我們現在預計外匯對我們 24 財年的收入增長率產生 350 個基點的負面影響,而我們之前的預期為 300 個基點。我們預計 24 財年的毛利率約為 77.5%,比我們之前的預期高出 50 個基點。

  • As we continue to execute on our important transition to the public cloud and unlock additional leverage in our model, we will be exiting FY '24 with an even stronger gross margin profile. As a result, we are raising our FY '24 non-GAAP operating margin guidance by 50 basis points to approximately 25.5% representing a 240 basis point improvement from last year's results of 23.1%. We are also raising our FY '24 non-GAAP EPS expectations to be in the range of $1.44 to $1.50 representing a 25% increase at the high end of the range versus $1.20 in the prior year, and we expect FY '24 GAAP EPS to be in the range of $0.17 to $0.23.

    隨著我們繼續執行向公共雲的重要過渡並在我們的模型中釋放更多槓桿,我們將以更強勁的毛利率退出 24 財年。因此,我們將 FY '24 非 GAAP 營業利潤率指引提高 50 個基點至約 25.5%,比去年的 23.1% 提高了 240 個基點。我們還將 FY '24 非 GAAP 每股收益預期上調至 1.44 美元至 1.50 美元,較上年的 1.20 美元增長 25%,我們預計 FY '24 GAAP 每股收益為在 0.17 美元到 0.23 美元之間。

  • Weighted average diluted shares are expected to be approximately $151 million. Our FY '24 GAAP and non-GAAP EPS guidance includes an expected annual impact from FX of approximately $0.20. For the full year of FY '24, we now anticipate currency headwinds to impact our billings growth rate by a little more than 100 basis points. We expect our FY '24 billings growth rate to be in the mid-single digit range on an as-reported basis.

    加權平均攤薄後的股份預計約為 1.51 億美元。我們的 FY '24 GAAP 和非 GAAP EPS 指南包括來自外彙的預期年度影響約為 0.20 美元。對於 24 財年全年,我們現在預計貨幣逆風將影響我們的賬單增長率略高於 100 個基點。我們預計我們的 24 財年賬單增長率將在報告的基礎上處於中個位數範圍內。

  • In summary, we are pleased with our execution in Q1. We once again demonstrated our disciplined and balanced model of investing for long-term growth while expanding both operating and free cash flow margins. We remain committed to achieving our FY '24 revenue growth plus free cash flow margin target of 35% or 39% in constant currency. In this dynamic macroeconomic environment, the Box Content Cloud is the platform that enterprises need to transform their business while lowering their costs.

    總之,我們對第一季度的執行感到滿意。我們再次展示了我們在擴大運營和自由現金流利潤率的同時,為長期增長進行有紀律和平衡的投資模式。我們仍然致力於實現我們的 24 財年收入增長加上以固定匯率計算的 35% 或 39% 的自由現金流利潤率目標。在這個動態的宏觀經濟環境中,Box Content Cloud 是企業在降低成本的同時實現業務轉型所需的平台。

  • With that, Aaron and I will be happy to take your questions. Operator?

    這樣,Aaron 和我將很樂意回答您的問題。操作員?

  • Operator

    Operator

  • (Operator Instructions)

    (操作員說明)

  • Your first question today comes from the line of Steve Enders with Citi.

    你今天的第一個問題來自花旗的 Steve Enders。

  • Steven Lester Enders - Research Analyst

    Steven Lester Enders - Research Analyst

  • I guess I just want to ask a little more on just the macroeconomic and what you're seeing out there? And I guess, what specifically is it in the EMEA and SMB business (inaudible) being impacted here. And I guess maybe how has that changed versus what we're seeing in the (inaudible) part of a couple of quarters?

    我想我只是想多問一點關於宏觀經濟和你在那裡看到的東西?我想,EMEA 和 SMB 業務(聽不清)在這裡受到的具體影響是什麼。我想也許這與我們在幾個季度的(聽不清)部分看到的情況相比發生了怎樣的變化?

  • Aaron Levie - Co-Founder, CEO & Director

    Aaron Levie - Co-Founder, CEO & Director

  • Yes. This is Aaron. I'll take that. I think overall, the general trends were pretty similar to kind of Q4 and what we were already seeing at the tail end of Q3 of last year. We did want to call out kind of an incremental element of softness on the SMB front in the U.S. and what we're seeing in EMEA. But as you can kind of see in the general guidance as well as because of the FX impact, it really is just incremental, but we did want to kind of note that. Overall, I think as we've kind of talked about in the past couple of quarters, the general dynamic is you just sort of see that there's more scrutiny on larger deals, especially in those segments of the business where maybe previously, we'd be doing a $100,000 deal, and that would be in this today's environment, maybe fewer seats would be transacted and that would come under that level as an example. But overall, I think when you look at the kind of Q1 results, Q2 guide, I think we're seeing some healthy trends across the business, but we did want to just call it that incremental softness.

    是的。這是亞倫。我會接受的。我認為總體而言,總體趨勢與第四季度以及我們在去年第三季度末已經看到的情況非常相似。我們確實想在美國的 SMB 戰線以及我們在 EMEA 看到的情況下提出一種漸進的軟性元素。但正如您在一般指南中看到的那樣,以及由於 FX 的影響,它確實只是增量的,但我們確實想指出這一點。總的來說,我認為正如我們在過去幾個季度中談到的那樣,一般的動態是你只是看到對較大的交易有更多的審查,特別是在那些我們以前可能會做一筆 100,000 美元的交易,那將是在今天的環境中,可能會交易更少的席位,這將低於該水平作為一個例子。但總的來說,我認為當你看到第一季度的結果,第二季度的指南時,我認為我們在整個業務中看到了一些健康的趨勢,但我們確實想稱之為增量軟性。

  • Steven Lester Enders - Research Analyst

    Steven Lester Enders - Research Analyst

  • Okay. That's helpful there. And I think anyone asks on the AI side and (inaudible) announcements that you've -- you come out with already, but I guess, how should we think about the potential for monetization and maybe how you're thinking about funding and kind of going forward? I guess what's kind of the early read on how you're thinking about that aspect of the AI strategy?

    好的。那在那裡很有幫助。我想有人會問 AI 方面和(聽不清)你已經發布的公告——你已經出來了,但我想,我們應該如何考慮貨幣化的潛力,也許你是如何考慮資金和善意的前進?我想您對 AI 戰略的這方面的思考是什麼樣的早期閱讀?

  • Aaron Levie - Co-Founder, CEO & Director

    Aaron Levie - Co-Founder, CEO & Director

  • Yes. So I do want to note, obviously, it's still pretty early in our overall journey with the latest wave of our Box AI efforts. Obviously, we've been in the space for a while and deeply understand the kind of potential in the use cases. But with -- what we're seeing with large language models as a pretty new frontier of use cases that we are unbelievably excited about, we want to make sure that we drive the right kind of product UX, the right kind of pricing and packaging, which is why we are taking a kind of measured approach as we roll this out. I think philosophically, the way that we think about it internally from a product and company standpoint is there are some use cases that we believe are just going to be kind of fundamentally table stakes for a product like ours. Some of those table stakes might be generating content with AI.

    是的。所以我確實想指出,很明顯,在我們最新一波的 Box AI 努力中,我們的整個旅程還處於早期階段。顯然,我們在這個領域已經有一段時間了,並且深刻理解用例中的潛力。但是,我們看到大型語言模型是一個非常新的用例前沿,我們對此感到非常興奮,我們希望確保我們推動正確的產品用戶體驗、正確的定價和包裝,這就是為什麼我們在推出時採取一種慎重的方法。我認為從哲學上講,我們從產品和公司的角度在內部考慮它的方式是,我們認為一些用例將成為像我們這樣的產品的基本籌碼。其中一些賭注可能正在使用人工智能生成內容。

  • Some of them might be asking questions of some amount of data leveraging AI. And in those cases, we want to try and ensure that we can broadly make that set of capabilities available. That's philosophical obviously, as we go through our design partner program and beta programs, we'll continue to evolve that. And then there are some maybe more either advanced capabilities or capabilities that have a high consumption dynamic related to them often through our platform or maybe in workflows where we will want to have incremental monetization via either our kind of platform API business or through our multiproduct suite packaging and that will be really driven by some of the use cases that we see from customers, again, especially through this design partner program. So I'd say kind of in the coming quarter or 2, stay tuned as we continue to evolve the ultimate pricing and packaging decisions, I think you've seen pretty similar dynamics in other -- either peer companies or big tech companies as they roll out beta programs of their products, trying to figure out what's the right kind of pricing model. We're basically doing the same. But I think the thing that we're -- we've already shown and done are very kind of public about now is we are going to be building this technology full force, and we think it's transformational in how we can work with our unstructured data and our content.

    他們中的一些人可能會問一些關於利用人工智能的數據的問題。在這些情況下,我們希望嘗試並確保我們能夠廣泛提供這組功能。這顯然是哲學的,當我們通過我們的設計合作夥伴計劃和測試計劃時,我們將繼續發展它。然後可能有更多的高級功能或具有高消費動態的功能,通常通過我們的平台或在我們希望通過我們的平台 API 業務或通過我們的多產品套件獲得增量貨幣化的工作流程中包裝,這將真正受到我們從客戶那裡看到的一些用例的驅動,尤其是通過這個設計合作夥伴計劃。所以我想說的是,在接下來的一兩個季度,請繼續關注我們繼續制定最終的定價和包裝決策,我認為你已經在其他公司看到了非常相似的動態——無論是同行公司還是大型科技公司,因為他們推出他們產品的測試程序,試圖弄清楚什麼是正確的定價模式。我們基本上在做同樣的事情。但我認為我們已經展示和完成的事情現在非常公開,我們將全力打造這項技術,我們認為它在我們如何使用我們的非結構化工作方面具有變革性數據和我們的內容。

  • Operator

    Operator

  • Your next question comes from the line of Josh Baer with Morgan Stanley.

    你的下一個問題來自摩根士丹利的 Josh Baer。

  • Joshua Phillip Baer - Equity Analyst

    Joshua Phillip Baer - Equity Analyst

  • Congrats on a nice quarter. I wanted to ask a few on use cases for Box, whether it's positioning for AI or cost cutting in this environment. Are there any use cases for Box that are really resonating around some of these themes today? And then separately or related, just wondering if you could talk a little bit about the mix of your customers that are using Box to collaborate in some way externally, like the external use case with partners or suppliers or customers or clients?

    祝賀一個不錯的季度。我想問一些關於 Box 的用例,無論是針對 AI 的定位還是在這種環境下的成本削減。今天是否有任何 Box 的用例真正圍繞其中的一些主題產生共鳴?然後分別或相關,只是想知道您是否可以談談使用 Box 以某種方式在外部進行協作的客戶組合,例如與合作夥伴或供應商或客戶或客戶的外部用例?

  • Aaron Levie - Co-Founder, CEO & Director

    Aaron Levie - Co-Founder, CEO & Director

  • Yes. So maybe just in reverse order, I'd say the significant percentage of our -- especially our larger deals, so that make up increasingly the bulk of our revenue. There's a heavy degree of internal and external collaboration going on with our product. It's one of our key value propositions is our defense kind of -- you're in the defense industry, you need to collaborate with the government or other kinds of manufacturing partners. You need something that is both going to be compliant for, FedRAMP, let's say, and have advanced security controls and allow you to kind of move data in and outside the boundaries of your organization in a very secure, compliant, reliable way.

    是的。所以也許只是相反的順序,我會說我們的很大一部分 - 特別是我們的大型交易,因此越來越多地占我們收入的大部分。我們的產品正在進行大量的內部和外部協作。我們的關鍵價值主張之一是我們的國防——你在國防工業,你需要與政府或其他類型的製造合作夥伴合作。你需要的東西既要符合 FedRAMP,比方說,又要有高級安全控制,並允許你以一種非常安全、合規、可靠的方式將數據移入和移出你的組織邊界。

  • So whether it's financial services, life sciences, health care, defense, the tech industry, external collaboration is certainly kind of a core part of our overall value proposition. In terms of some of the near-term deals, it's pretty broad-based in terms of the industries that we're seeing business in across everything from life sciences and health care, great deals in the retail sector, even in tech, seeing some healthy deals as well. And I think the use cases are really kind of centered around our 3 core pillars of improving the security posture of the organization by protecting their most important data, helping drive better collaboration and workflows around content and then our platform, which connects to all of their software. So really being a hub for content that connects into ServiceNow and Slack and Salesforce and Microsoft Teams Office and many more applications. So I think those 3 kind of core areas of focus remain extremely alive and well. And then our conversations, which I wouldn't necessarily attribute any major kind of deals in Q1 tied to this, but the conversations have increasingly been about what is the AI strategy of any given customer and enterprise it's driving certainly a lot of conversations we're now having about Box AI.

    因此,無論是金融服務、生命科學、醫療保健、國防、科技行業,外部合作無疑是我們整體價值主張的核心部分。就一些近期交易而言,就我們所看到的行業而言,它的基礎非常廣泛,從生命科學和醫療保健到零售業的重大交易,甚至在科技領域,都看到了一些健康的交易也是如此。而且我認為用例確實圍繞著我們的 3 個核心支柱,即通過保護組織最重要的數據來改善組織的安全狀況,幫助推動圍繞內容的更好協作和工作流,然後是我們的平台,該平台連接到他們所有的軟件。因此,它確實是連接到 ServiceNow、Slack、Salesforce 和 Microsoft Teams Office 以及更多應用程序的內容中心。所以我認為這 3 種核心關注領域仍然非常活躍。然後是我們的對話,我不一定會將第一季度的任何重大交易歸因於此,但對話越來越多地涉及任何給定客戶和企業的 AI 戰略,它肯定會推動我們進行很多對話。我們現在正在討論 Box AI。

  • I've had more CIOs and even CEOs in some cases, reach out around our strategy in AI than we've seen kind of in prior technology trends. And I think everybody is trying to figure out their strategy of how do they bring generative AI to their enterprise use cases, which is going to -- which requires a substantial amount of work in kind of the abstraction layer between AI models, customer data and cloud infrastructure, and that's exactly what we're building out. So we think we're in a really strong position to help customers with that.

    在某些情況下,我有更多的 CIO 甚至 CEO 圍繞我們在 AI 方面的戰略展開討論,這比我們在之前的技術趨勢中看到的要多。而且我認為每個人都在試圖弄清楚他們如何將生成人工智能引入他們的企業用例的策略,這將需要在人工智能模型、客戶數據和雲基礎設施,而這正是我們正在構建的。所以我們認為我們在幫助客戶方面處於非常有利的地位。

  • Joshua Phillip Baer - Equity Analyst

    Joshua Phillip Baer - Equity Analyst

  • If I could sneak one in for Dylan. Just wondering on the $6 million in early renewals, if you could provide some more color on what type of customers? What's driving that behavior? And then I guess, in regard to Q2 billings guidance, does that assume that the early renewal trend stops?

    如果我能偷偷給迪倫一個。只是想知道早期續訂的 600 萬美元,是否可以為哪種類型的客戶提供更多顏色?是什麼推動了這種行為?然後我想,關於第二季度的賬單指導,這是否假設提前續訂趨勢停止了?

  • Dylan Smith - Co-Founder & CFO

    Dylan Smith - Co-Founder & CFO

  • Yes. So in terms of what's driving those early renewals, tends to be a handful of larger customers, and the main dynamic that would cause a customer and similarly in Q1, what we saw to decide to renew early is typically to move into suites and be able to support some of the higher-value newer use cases that they want to get into rather than, for example, waiting for the natural renewal cycle the following quarter to be in to adopt suites and those capabilities.

    是的。因此,就推動這些早期續訂的因素而言,往往是少數較大的客戶,以及導致客戶的主要動力,與第一季度類似,我們看到決定提前續訂的通常是進入套房並能夠支持他們想要進入的一些更高價值的新用例,而不是等待下一季度的自然更新周期進入採用套件和那些功能。

  • So that tends to be what we see is just the clear buy-in and understanding the value proposition from customers and just wanted to move more quickly to take those on. And the most of that $6 million did come out of Q2, and we always tend to take a fairly conservative approach kind of the baseline of early renewals that we see, and that's baked into our kind of billings expectations in any given quarter. So we're not necessarily expecting to see the same type of volume that we saw in Q1, but we would expect to see some customers elect to early renew in the second quarter as we tend to see maybe in the quarter.

    因此,這往往是我們所看到的只是明確的買入和理解客戶的價值主張,並且只是想更快地採取行動來接受這些。而這 600 萬美元中的大部分確實來自第二季度,我們總是傾向於對我們看到的早期續訂基線採取相當保守的方法,這已經融入了我們在任何給定季度的賬單預期中。因此,我們不一定期望看到我們在第一季度看到的相同類型的數量,但我們預計會看到一些客戶選擇在第二季度提前續訂,因為我們可能會在本季度看到。

  • Operator

    Operator

  • Your next question comes from the line of Pinjalim Bora with JPMorgan.

    你的下一個問題來自摩根大通的 Pinjalim Bora 系列。

  • Pinjalim Bora - Analyst

    Pinjalim Bora - Analyst

  • Congrats on the quarter. Aaron, on AI, I understand you can't really talk about the monetization at this point. But as you're talking to your customers, what are you hearing from them in terms of uptake of these AI functionalities. And do you overall see kind of area as an accelerant to the growth rate maybe in the medium term?

    祝賀這個季度。亞倫,關於人工智能,我知道你現在不能真正談論貨幣化。但是當您與客戶交談時,您從他們那裡聽到了關於這些 AI 功能的使用情況。您是否總體上認為某種區域可能在中期可以促進增長率?

  • Aaron Levie - Co-Founder, CEO & Director

    Aaron Levie - Co-Founder, CEO & Director

  • Yes. So with conversations with customers, I would say that this is certainly probably the fastest amount of concerted energy that I've probably seen in the decade and half of doing Box on 1 single topic from an IT standpoint. So cloud computing, I mean we worked for 5 years at least, really just doing the very basics of educating enterprises on why the cloud was useful and what efficiency they could get from the cloud. And then it was still another decade until you had the kind of mainstream adoption of cloud across the enterprise base. With AI, I think you have such a rapid alignment of customers on testing new use cases, trying out new products and capabilities. Obviously, things like ChatGPT have been front and center. Some companies are fully banning that. Some customers are -- some companies are enabling that. And what I think companies are trying to figure out is where is the productivity gain going to most come from? Is it going to come from going into an AI interface and just like a ChatGPT and asking a question and getting an answer back? Or is it going to come from AI reasoning over existing data and existing workflows in an enterprise and then becoming a productivity boost for those kinds of use cases.

    是的。因此,在與客戶的對話中,我想說,從 IT 的角度來看,這可能是我在過去 15 年的時間裡看到的在 Box on 1 single topic 中最快的一次。所以雲計算,我的意思是我們至少工作了 5 年,實際上只是在做最基礎的教育,讓企業了解為什麼雲是有用的,以及他們可以從雲中獲得什麼樣的效率。然後又過了十年,你才在整個企業基礎上實現了雲的主流採用。有了 AI,我認為您在測試新用例、嘗試新產品和新功能時可以迅速與客戶保持一致。顯然,ChatGPT 之類的東西一直處於前沿和中心地位。一些公司完全禁止這樣做。一些客戶 - 一些公司正在實現這一點。我認為公司正在努力弄清楚的是,生產力增長的最大來源是哪裡?它會來自進入 AI 界面,就像 ChatGPT 一樣,提出問題並得到答案嗎?或者它會來自對企業中現有數據和現有工作流的 AI 推理,然後成為這些用例的生產力提升。

  • With Box AI, actually, we're going to help customers do both because with Box Notes, you'll be able to generate content instantaneously directly from the AI model and with Box Preview and with future products that we haven't announced yet, you'll be able to start to ask questions of the existing data you have. And so we think we can meet both of those use cases but it's incredibly early for customers overall. I'll give you just a kind of a sense of the types of conversations we're having where companies are saying, "Hey, I have hundreds or thousands or tens of thousands of documents of a specific topic, could be contracts, could be life sciences research data, could be very kind of bespoke content types in a specific industry." And they're saying, we have all this content. We want to be able to understand what's in it. We want to correlate trends across it. We want to ask questions of this data set. And right now, we have to have kind of humans manually go through this content to understand what's inside of it and apply metadata and to be able to actually kind of reason through it. And so they often don't get to the actual use cases that are super exciting because they just don't have enough either humans or it would be too costly. And so they never get around to it.

    實際上,使用 Box AI,我們將幫助客戶做到這兩點,因為使用 Box Notes,您將能夠直接從 AI 模型和 Box Preview 以及我們尚未發布的未來產品中即時生成內容,您將能夠開始對現有數據提出問題。因此,我們認為我們可以滿足這兩種用例,但對整體客戶來說還為時過早。我會讓你大致了解一下我們正在進行的對話類型,公司會說,“嘿,我有成百上千或數万份特定主題的文件,可能是合同,可能是生命科學研究數據,可能是特定行業中非常定制的內容類型。”他們說,我們擁有所有這些內容。我們希望能夠理解其中的內容。我們想關聯它的趨勢。我們想問這個數據集的問題。現在,我們必須讓一些人手動瀏覽這些內容,以了解其中的內容並應用元數據,並能夠通過它進行實際推理。因此,他們通常不會接觸到超級令人興奮的實際用例,因為他們要么沒有足夠的人手,要么成本太高。所以他們從來沒有抽空去做。

  • And so with AI, it starts to actually unlock and -- kind of tap into all of this value of the underlying data that they already have inside of Box or if they move more data into box, it can certainly provide even more value. And so those are the kind of conversations that we're having with customers. We have some companies that are saying, "Hey, we think we can identify new life sciences breakthroughs if we could correlate research across multiple research documents or we have a company in the advertising industry that believes that they could generate more revenue if they could quickly identify what projects to put certain advertisers on that wouldn't be known by any single individual inside their organization, it would only work if they actually collected all of the data across their organization to understand what kind of projects would make sense for certain advertisers. And so these are the really exciting kind of use cases which can drive productivity. They can drive new revenue opportunities for our customers. And so that's where we're certainly going to be pretty focused on. In terms of accelerating our revenue, I think because of how early it is, we want to be really thoughtful about that dynamic. I think to some extent, AI is going to become table stakes for all of modern software.

    因此,對於人工智能,它開始真正解鎖——有點挖掘他們已經在 Box 內部擁有的基礎數據的所有這些價值,或者如果他們將更多數據移入 Box,它肯定可以提供更多價值。因此,這些就是我們與客戶進行的對話。我們有一些公司說,“嘿,我們認為,如果我們可以將多個研究文件中的研究關聯起來,或者我們有一家廣告行業的公司相信,如果他們能夠迅速提高收入,他們可以創造更多的收入確定將某些廣告商投放在其組織內的任何個人都不知道的項目上,只有當他們實際收集了整個組織的所有數據以了解哪種項目對某些廣告商有意義時,它才會起作用。因此,這些是真正令人興奮的用例,可以提高生產力。它們可以為我們的客戶帶來新的收入機會。所以這就是我們肯定會非常關注的地方。在加速我們的收入方面,我認為因為現在還早,我們想要真正考慮到這種動態。我認為在某種程度上,人工智能將成為所有現代軟件的籌碼。

  • And so we think it's going to be a huge driver of companies trying to get their data and their content into a really good logical architecture, the one that is secure, the one that's compliant, one that's in the cloud. we think we'll stand to benefit from that certainly and kind of the moving off of legacy fragmented systems. But at the same time, we recognize that companies in general will have a fixed amount of net new budget that they can bring to AI. And so there's going to be a lot of kind of volume for that budget. And so we want to be thoughtful about leaning too hard on that.

    因此,我們認為這將成為公司試圖將他們的數據和內容放入一個非常好的邏輯架構中的一個巨大驅動力,一個安全的,一個合規的,一個在雲中的。我們認為我們肯定會從遺留分散系統的轉移中受益。但與此同時,我們認識到,公司通常會有固定數量的淨新預算可以用於 AI。因此,該預算將會有很多種類。因此,我們要考慮過分依賴這一點。

  • Pinjalim Bora - Analyst

    Pinjalim Bora - Analyst

  • Got it. Very, very helpful. And one for Dylan. Dylan maybe the macro situation, the softness in the SMB and the EMEA. Maybe talk about the linearity of the quarter? How did that kind of fall through the 3 months in the quarter? Was it to (inaudible) towards the beginning. And also, if you can touch upon kind of the sequential revenue decline. Is that largely because of Box Consulting?

    知道了。非常非常有幫助。還有一個給迪倫。 Dylan 也許是宏觀形勢,SMB 和 EMEA 的疲軟。也許談談季度的線性?這種情況在本季度的 3 個月內是如何下降的?是不是(聽不清)一開始。而且,如果你能談談收入連續下降的情況。這主要是因為 Box Consulting 嗎?

  • Dylan Smith - Co-Founder & CFO

    Dylan Smith - Co-Founder & CFO

  • Sure. So starting with the linearity. We saw a pretty normal linearity in the first quarter both in those segments you mentioned as well as the rest of the business, like our enterprise segments. So nothing unusual from that standpoint. And then in terms of the sequential revenue decline, that was primarily driven by the number of days that we had that there are in Q1 versus Q4, which has about a $9 million impact to the quarter's revenue versus Q4.

    當然。所以從線性開始。我們在第一季度看到了非常正常的線性,無論是在你提到的那些領域,還是其他業務領域,比如我們的企業領域。所以從這個角度來看沒有什麼不尋常的。然後就連續收入下降而言,這主要是由我們在第一季度與第四季度的天數驅動的,與第四季度相比,這對本季度的收入產生了約 900 萬美元的影響。

  • And then there was also a couple of million dollars from a very strong Box Consulting revenue outcome in the fourth quarter. So those combined add up to about $11 million. And then the first of those, the todays dynamic, that's something that is not unique to this year, but usually doesn't show up in as pronounced of a way as we typically have a stronger and higher volume of bookings in the fourth quarter to offset that. But that was the main driver of the sequential chain of revenue.

    然後,第四季度 Box Consulting 的強勁收入也帶來了數百萬美元。因此,這些加起來約為 1100 萬美元。然後是其中的第一個,今天的動態,這不是今年獨有的,但通常不會像我們通常在第四季度有更強勁和更高的預訂量那樣明顯地出現抵消那個。但這是連續收入鏈的主要驅動力。

  • Operator

    Operator

  • Your next question comes from the line of Jason Ader with William Blair. .

    你的下一個問題來自 Jason Ader 和 William Blair 的對話。 .

  • Jason Noah Ader - Partner & Co-Group Head of Technology, Media and Communications

    Jason Noah Ader - Partner & Co-Group Head of Technology, Media and Communications

  • Aaron, I wanted to continue down the AI thread shockingly. First, I guess, I just wanted to -- let's look at it in 2 different ways. First, at a very high level, what does this mean for knowledge worker seats? And do you worry about that? Secondly, just on more on the kind of devil's advocate side, how does this -- how does the Microsoft competitive risk change or not, just because Microsoft has been at the forefront of a lot of this stuff? And then more on the kind of positive side, when you talk about monetization, I don't want to go there, but how are you using this internally maybe to improve your cost structure and what are some of your thoughts there? Dylan, you can chime in there as well. I'm sure you've thought a lot about that.

    Aaron,我想震驚地繼續 AI 話題。首先,我想,我只是想——讓我們以兩種不同的方式來看待它。首先,在非常高的層面上,這對知識工作者席位意味著什麼?你擔心嗎?其次,就更多的魔鬼擁護者而言,這如何——微軟的競爭風險如何改變或沒有改變,僅僅因為微軟一直處於很多這類事情的最前沿?然後更積極的一面是,當你談到貨幣化時,我不想去那裡,但你如何在內部使用它來改善你的成本結構,你有什麼想法?迪倫,你也可以插話。我相信你已經想了很多。

  • Aaron Levie - Co-Founder, CEO & Director

    Aaron Levie - Co-Founder, CEO & Director

  • Yes, great. We'll try and cover those. So on the first one, and just so I clarify, that was sort of like a meta kind of philosophical question on seat changes over time.

    對,很好。我們將嘗試涵蓋這些內容。所以在第一個問題上,我澄清一下,這有點像關於座位隨時間變化的元哲學問題。

  • Jason Noah Ader - Partner & Co-Group Head of Technology, Media and Communications

    Jason Noah Ader - Partner & Co-Group Head of Technology, Media and Communications

  • Yes, just a pool of knowledge workers potentially not growing as fast as it would have otherwise.

    是的,只是一群知識工作者可能不會像其他情況下那樣快速增長。

  • Aaron Levie - Co-Founder, CEO & Director

    Aaron Levie - Co-Founder, CEO & Director

  • Yes. I'm -- this is a personal opinion. And even from a corporate financial standpoint, we're so early in our kind of total seat population that this would be a corporate view as well in terms of what the potential is for Box overall. But I strongly believe that this is going to be a net positive impact to just knowledge worker productivity as opposed to a net replacement to kind of large swaps of knowledge work. If you look at the actual tasks that any one of us do in any of our jobs kind of across our roughly 2,500 employees or kind of anybody that we interact with, the vast majority of work that we're actually doing is sort of a collection of many subtasks; hundreds, thousands of subtasks that require us to have a large degree of context that we kind of maintain.

    是的。我是——這是個人意見。甚至從公司財務的角度來看,我們在總席位人口方面還處於早期階段,因此就 Box 的整體潛力而言,這也是公司的觀點。但我堅信,這將對知識工作者的生產力產生淨積極影響,而不是對知識工作的大規模交換產生淨替代。如果你看看我們中的任何一個人在我們大約 2,500 名員工或我們與之互動的任何人的任何工作中所做的實際任務,我們實際所做的絕大多數工作都是一種收集許多子任務;成百上千的子任務要求我們擁有我們維護的大量上下文。

  • And I think AI is going after those individual subtasks and in some cases, collections of subtasks, but really in a way that will just make us more productive overall. Maybe some roles will be 5% more productive, some roles may be 50% more productive. But I think the net result of that is that we just accelerate into the future faster as opposed to we kind of like do less work or that a company wouldn't want to grow faster if they could with AI and making their employees more productive. So in general, I think whether it's -- we'll produce more graphic designers and there'll be more engineers and our sales reps will be more efficient in working with customers. I see there's only a sign that we'll be able to either over time, globally, more people will be able to do those jobs and there'll be more demand for those skills overall because companies can then be more efficient.

    我認為人工智能正在處理那些單獨的子任務,在某些情況下,是子任務的集合,但實際上是以一種只會讓我們整體更有效率的方式。也許有些角色的生產力會提高 5%,有些角色的生產力可能會提高 50%。但我認為這樣做的最終結果是我們只是更快地加速進入未來,而不是我們喜歡做更少的工作,或者如果一家公司可以使用人工智能並提高員工的工作效率,他們就不會希望增長得更快。所以總的來說,我認為它是否——我們會產生更多的平面設計師,會有更多的工程師,我們的銷售代表會更有效地與客戶合作。我看到只有跡象表明我們將能夠隨著時間的推移,在全球範圍內,更多的人將能夠從事這些工作,並且總體上對這些技能的需求將會增加,因為公司可以變得更有效率。

  • Instead of having maybe a sales rep or an engineer waste time trying to search or find information, they can be doing the more fun productive parts of their job of working with a customer or getting code released and building a feature. And so I think that's the kind of impact on the total knowledge worker population.

    與其讓銷售代表或工程師浪費時間嘗試搜索或查找信息,他們還可以做他們工作中更有趣、更有成效的部分,如與客戶合作或發布代碼和構建功能。所以我認為這就是對整個知識工作者群體的影響。

  • So I'm firmly in the optimist camp on this one in terms of what it does to jobs. On Microsoft, so 2 things to note. One, we're partnering with OpenAI which by virtue leads you to partnering more broadly over time with Microsoft as well, given the OpenAI models generally running on Azure. So there's, I think, a lot of exciting potential on that collaboration and an area that we're going to cooperate with them, we think, pretty meaningfully. And so customers will be able to basically leverage the exact same AI that they would be seeing in any Microsoft products, but within Box as well. So that kind of adds a bit of a bit of benefit to our relationship there with CoPilot. CoPilot already has the ability to drive integrations with third-party software. And so Box was kind of announced at a high level last week at the Build conference as one of those integrations.

    因此,就它對工作的影響而言,我堅定地站在樂觀主義者的陣營中。在 Microsoft 上,有兩點需要注意。第一,我們正在與 OpenAI 合作,考慮到 OpenAI 模型通常在 Azure 上運行,隨著時間的推移,這將引導您與 Microsoft 進行更廣泛的合作。所以,我認為,這種合作有很多令人興奮的潛力,我們認為,我們將與他們合作的領域非常有意義。因此,客戶將能夠基本上利用他們在任何 Microsoft 產品中看到的完全相同的人工智能,但也在 Box 中。因此,這為我們與 CoPilot 的關係增加了一點好處。 CoPilot 已經能夠推動與第三方軟件的集成。因此,Box 在上週的 Build 大會上被高級別宣佈為這些集成之一。

  • And so we're going to deeply integrate across CoPilot in the various API endpoints that they create. So you'll see a lot of interoperability where maybe you go to CoPilot and you ask a question that needs to pull data from Box and Atlassian or Box Inc salesforce or any of the supported products. And so we think that will kind of be a very clear way that we can integrate. And overall, strategically, I think what you're going to see us do is go deeper specifically in content than what we believe any other player is going to be building out from an AI standpoint.

    因此,我們將在他們創建的各種 API 端點中跨 CoPilot 進行深度集成。所以你會看到很多互操作性,你可能會去 CoPilot 並提出一個問題,需要從 Box 和 Atlassian 或 Box Inc 銷售人員或任何受支持的產品中提取數據。因此,我們認為這將是一種非常明確的整合方式。總的來說,從戰略上講,我認為你將看到我們所做的是在內容方面比我們認為任何其他玩家將從 AI 角度構建的內容更深入。

  • And so understanding the content AI use cases is core to our value proposition and our expertise. And then I think the secondary element is our neutrality ends up being a huge benefit for customers. So today, obviously, OpenAI has many of the leading models. We announced a partnership with Google, where we'll certainly be working with Google technology. There's other great players in the market like and others. Our ability to be neutral to some of those kind of battles, we think, put us in a very strong position as well where customers can leverage wherever the various breakthroughs are coming from. And then in terms of cost structure, I'll let Dylan talk about it. But in general, we want to certainly ensure our employees are being as productive as possible and we want to leverage technology to do that.

    因此,了解內容 AI 用例是我們價值主張和專業知識的核心。然後我認為次要因素是我們的中立最終為客戶帶來巨大利益。所以今天,很明顯,OpenAI 擁有許多領先的模型。我們宣布與穀歌建立合作夥伴關係,我們肯定會在其中使用谷歌技術。市場上還有其他偉大的參與者,比如其他人。我們認為,我們對其中一些戰鬥保持中立的能力使我們處於非常有利的地位,無論各種突破來自何處,客戶都可以利用這些優勢。然後在成本結構方面,我會讓迪倫談談。但總的來說,我們當然希望確保我們的員工盡可能高效,並且我們希望利用技術來做到這一點。

  • Dylan Smith - Co-Founder & CFO

    Dylan Smith - Co-Founder & CFO

  • And to build on that, I think our approach internally is pretty similar to what Aaron described on the overall knowledge worker dynamic, and it's a bit early to tell just exactly how this impacts everything and how AI ends up being embedded in the various tools that we use as Boxers. But broadly, we absolutely view it as a way to boost productivity. And so automating basic questions that Boxers will be answering is one example of that, an assistant to the subtasks that Aaron mentioned. And then there's just a lot of other cool ways for specific functions where, for example, can really supercharge the capabilities of our security instant response team and kind of identify anomalous activities on Box to be able to flag certain threats earlier. So I think it's really a lot of different jobs are going to be impacted in different ways, but we view it more as supercharging productivity and getting as much value out of the different tools that we're using as possible.

    在此基礎上,我認為我們的內部方法與 Aaron 在整體知識工作者動態中所描述的方法非常相似,現在就確切地說明這將如何影響一切以及人工智能如何最終嵌入到各種工具中還為時過早。我們用作拳擊手。但總的來說,我們絕對將其視為提高生產力的一種方式。因此,自動化 Boxers 將要回答的基本問題就是其中一個例子,Aaron 提到的子任務的助手。然後還有很多其他用於特定功能的很酷的方法,例如,可以真正增強我們的安全即時響應團隊的能力,並識別 Box 上的異常活動,以便能夠更早地標記某些威脅。所以我認為確實有很多不同的工作將以不同的方式受到影響,但我們更多地將其視為提高生產力並從我們使用的不同工具中獲得盡可能多的價值。

  • Operator

    Operator

  • Your next question comes from the line of Tom Blakey with KeyBanc.

    您的下一個問題來自 Tom Blakey 與 KeyBanc 的對話。

  • Thomas Blakey - Research Analyst

    Thomas Blakey - Research Analyst

  • A few questions actually just kind of bolted here. Could you just comment on the longer duration in deals? Just interesting, given the current macro, if you could just highlight why this might be happening, whether it be strategic reasoning or possibly even maybe discounting? Secondly, you mentioned quickly doing there on weaker bookings at the end of fiscal 4Q. Could you just maybe comment on booking trends and fiscal 1Q and into fiscal Q2, that would be helpful. And third and lastly, my AI question would be more around on the usage of it from your business model.

    有幾個問題實際上只是在這裡狂奔。你能評論一下交易的持續時間更長嗎?有趣的是,考慮到當前的宏觀經濟,如果你能強調為什麼會發生這種情況,它是戰略推理還是可能甚至可能是貼現?其次,您提到在第四財季末預訂量減少時迅速採取行動。您能否就預訂趨勢和第一財季以及第二財季發表評論,這會有所幫助。第三,也是最後一點,我的 AI 問題將更多地圍繞您的業務模型中它的使用。

  • I've seen some -- we've seen some impact on company's gross margins or at least modeled to have an impact on gross margins over time as especially the consumption-based modeling could maybe impact gross margin. It would be helpful just to get a comment on you from you doing on a longer-term look there with regard to AI and the model -- and the margins would be very helpful.

    我已經看到了一些——我們已經看到了對公司毛利率的一些影響,或者至少建模為隨著時間的推移對毛利率產生影響,因為特別是基於消費的建模可能會影響毛利率。從你那裡對人工智能和模型的長期觀察中獲得對你的評論會很有幫助——利潤會非常有幫助。

  • Aaron Levie - Co-Founder, CEO & Director

    Aaron Levie - Co-Founder, CEO & Director

  • Sure. So we'll start and try and then if I miss something or the question -- but no, all good. So I would say on the duration component, first of all, that is something that we've actually been seeing pretty consistently for several quarters now where while it is a challenging macroeconomic environment, we are seeing for our customers increasing the viewing Box as a long-term strategic partner. And so especially with suites deals, Enterprise Plus and our larger customers, those tend to be multiyear renewals.

    當然。所以我們會開始嘗試,然後如果我錯過了什麼或問題——但沒有,一切都很好。所以我想說的是,關於持續時間部分,首先,這是我們實際上已經連續幾個季度看到的事情,雖然這是一個充滿挑戰的宏觀經濟環境,但我們看到我們的客戶增加觀看框作為長期戰略合作夥伴。因此,特別是對於套房交易、Enterprise Plus 和我們的大客戶,這些交易往往是多年續訂。

  • And as -- when you combine that with the dynamic of more customers early renewing, so extending the average kind of contract durations out there. That's what's led to the outsized backlog growth. So that's up 22% year-on-year and is not because of any unusual or different approach to pricing or discounting that we're doing. It's more just customers having that long-term confidence and electing to sign longer contracts with us. In terms of the booking trends comparing kind of what we saw in Q4 of last year versus Q1 of this year, would generally describe it as pretty similar with most parts of the business kind of steady and delivering against our expectations. The areas that we called out, where we did see some incremental softening were U.S. commercial and EMEA customers. And then I would say it's a bit early to comment on Q2, but certainly, our expectations and what we're seeing in the business is baked into the guidance that we provided. And then to clarify on the gross margin, the question was that more about how we think AI will impact that specifically.

    而且——當你將其與更多客戶提前續約的動態相結合時,就會延長平均合同期限。這就是導致大量積壓增長的原因。所以這比去年同期增長了 22%,這並不是因為我們正在採取任何不尋常或不同的定價或折扣方法。更多的只是客戶擁有長期的信心並選擇與我們簽訂更長期的合同。就我們在去年第四季度與今年第一季度看到的預訂趨勢進行比較而言,通常會將其描述為與大多數業務穩定且交付超出我們預期的情況非常相似。我們指出的領域,我們確實看到一些漸進的軟化是美國商業和 EMEA 客戶。然後我會說現在對第二季度發表評論還為時過早,但可以肯定的是,我們的期望和我們在業務中看到的內容已融入我們提供的指導中。然後澄清毛利率,問題是更多關於我們認為人工智能將如何具體影響的問題。

  • Jason Noah Ader - Partner & Co-Group Head of Technology, Media and Communications

    Jason Noah Ader - Partner & Co-Group Head of Technology, Media and Communications

  • No. With regard -- we've seen some companies, for example, offering AI functionality to customers where that's adversely impacted their business model from a gross margin perspective. I was wondering if you want to make a comment on that. .

    不。關於 - 例如,我們已經看到一些公司向客戶提供 AI 功能,從毛利率的角度來看,這對他們的業務模式產生了不利影響。我想知道你是否想對此發表評論。 .

  • Aaron Levie - Co-Founder, CEO & Director

    Aaron Levie - Co-Founder, CEO & Director

  • Yes. This is Aaron. I'll just jump in on that one. It kind of goes back to the first part, we think some of the basic use cases, we do want to try and make more broadly available, and by virtue of those being kind of lighter weight, we see less of a meaningful gross margin impact on that. And then for more of the advanced and kind of higher end use cases, we expect to charge customers in either moving them up to higher tier plans or through consumption models via our platform. And so in general, we're working to counteract any of the potential pressures. We're very confident in our long-term gross margin improvements. And we believe that some of these capabilities will just get based in -- built in as a baseline. But overall, not in a way that we think will show up to the numbers we're reporting.

    是的。這是亞倫。我會跳進那個。有點回到第一部分,我們認為一些基本用例,我們確實想嘗試並提供更廣泛的使用,並且由於這些用例重量更輕,我們認為有意義的毛利率影響較小在那上面。然後對於更多高級和更高端的用例,我們希望通過我們的平台向客戶收取費用,以將他們提升到更高級別的計劃或通過消費模型。所以總的來說,我們正在努力抵消任何潛在的壓力。我們對我們的長期毛利率改善非常有信心。我們相信,其中一些功能將成為基礎——作為基線內置。但總的來說,不會以我們認為會顯示我們報告的數字的方式。

  • Operator

    Operator

  • Your next question comes from Chad Bennett with Craig-Hallum.

    你的下一個問題來自 Chad Bennett 和 Craig-Hallum。

  • Chad Michael Bennett - Senior Research Analyst

    Chad Michael Bennett - Senior Research Analyst

  • So just a follow-up on the duration question. So just in terms of how we think about the kind of the economics you've laid out on moving from kind of a single seat kind of point product to suite in Enterprise Plus and whatnot that you've laid out over a couple of Analyst Days, are those economics or uplift are they still intact with the longer-duration deals? I'm assuming these longer duration deals kind of lean more suite driven than anything else. Just any commentary on how those economics are playing out?

    所以只是對持續時間問題的跟進。因此,就我們如何看待您在從單一席位類型的單點產品轉移到 Enterprise Plus 中的套件以及您在幾個分析師日中提出的諸如此類的經濟問題而言,這些經濟學或提昇在長期交易中是否仍然完好無損?我假設這些持續時間更長的交易比其他任何東西都更受套件驅動。關於這些經濟學如何發揮作用的任何評論?

  • Dylan Smith - Co-Founder & CFO

    Dylan Smith - Co-Founder & CFO

  • Yes, those economics, specifically kind of the difference and the higher -- kind of stronger customer economics, top to bottom, including the pricing uplift if you're comparing a typical suit/enterprise plus customer versus a similarly sized customer just using the basic service. We are still seeing roughly a doubling in price per seat. And actually, on the contract duration, it's always been the case since we rolled out Suites and then Enterprise Plus that those have tended to be longer multiyear deals. And it's just as more and more of our revenue is coming from those customers, it's part of that mix shift that's actually driving the higher average contract durations. So not even a big change in the last quarter or very recently, we have been seeing backlog growing faster than revenue or deferred revenue for quite some time now.

    是的,那些經濟學,特別是差異和更高 - 更強的客戶經濟學,從上到下,包括定價提升,如果你比較一個典型的套裝/企業加上客戶與僅使用基本的類似規模的客戶服務。我們仍然看到每個座位的價格大約翻了一番。實際上,在合同期限方面,自從我們推出 Suites 和 Enterprise Plus 以來,情況一直如此,這些往往是更長的多年期交易。正如我們越來越多的收入來自這些客戶一樣,它是這種混合轉變的一部分,實際上推動了更高的平均合同期限。因此,即使在上個季度或最近也沒有太大變化,我們已經看到積壓訂單的增長速度超過收入或遞延收入已經有一段時間了。

  • Chad Michael Bennett - Senior Research Analyst

    Chad Michael Bennett - Senior Research Analyst

  • Okay. And then just maybe for a little bit of a look back on net retention, just considering your churn rate just continues to -- full churn continues to get better or stay at kind of record levels in a good way. Just from net retention from 112 to I think you said 106 today, kind of just -- can you rank order whether it's kind of seat growth or suite adoption? Or what's kind of really the main drivers of that deceleration?

    好的。然後可能只是回顧一下淨保留率,只要考慮到您的流失率一直在繼續——完全流失率繼續變得更好,或者以一種好的方式保持在某種創紀錄的水平。只是從 112 的淨保留到我想你今天說的 106,有點——你能對座位增長或套房採用率進行排序嗎?或者這種減速的真正主要驅動因素是什麼?

  • Dylan Smith - Co-Founder & CFO

    Dylan Smith - Co-Founder & CFO

  • Yes, sure. So it's actually -- and maybe the level set for everyone's benefit, there are really 3 components of our net retention rate. There's the seat expansion. There's the impact of pricing changes -- historically for us, pricing improvements and then the full churn rate comes out of those 2 expansion levers. And the stack rank in this case is pretty straightforward in that virtually all of it is attributable to a lower seat expansion. So we've continued to see consistent, steady improvements in price per seats, largely driven by the impact of more and more customers moving into suites at a higher price point. And then to your point, full churn has remained stable and very strong as well. So it really is entirely being driven by the pressures on the seat expansion rate.

    是的,當然。所以它實際上 - 也許是為了每個人的利益而設定的水平,我們的淨保留率實際上有 3 個組成部分。有座位擴展。有定價變化的影響——從歷史上看,對我們來說,定價改進和完全流失率來自這兩個擴張槓桿。在這種情況下,堆棧排名非常簡單,因為幾乎所有這些都歸因於較低的座位擴展。因此,我們繼續看到每個座位的價格持續穩定地提高,這在很大程度上是由於越來越多的客戶以更高的價格進入套房的影響。然後就您的觀點而言,完全流失一直保持穩定並且非常強勁。所以它真的完全是由座位膨脹率的壓力驅動的。

  • Chad Michael Bennett - Senior Research Analyst

    Chad Michael Bennett - Senior Research Analyst

  • Okay. And then maybe one last one, if I could, real quick. Did you -- I might have missed it. Did you comment, Dylan, on how to think about billings growth for the year relative to revenue growth? And then I'll hop off.

    好的。然後也許是最後一個,如果可以的話,真的很快。你——我可能錯過了。迪倫,您是否評論過如何考慮與收入增長相關的年度賬單增長?然後我就下車了。

  • Dylan Smith - Co-Founder & CFO

    Dylan Smith - Co-Founder & CFO

  • Yes. So we expect our reported billings growth to be in the mid-single-digit percentage range, and that does include a little more than 100 basis point headwind from FX. So in the general range of our expected reported revenue growth of 6% is how we describe that.

    是的。因此,我們預計我們報告的賬單增長將處於中個位數百分比範圍內,並且確實包括來自外彙的 100 個多基點的逆風。因此,在我們預期報告的收入增長 6% 的一般範圍內,我們就是這樣描述的。

  • Operator

    Operator

  • Your next question comes from Rishi Jaluria from RBC.

    你的下一個問題來自 RBC 的 Rishi Jaluria。

  • Rishi Nitya Jaluria - Analyst

    Rishi Nitya Jaluria - Analyst

  • Two for you. First, I'll cross another generative AI question just because it's so top of mind for everyone. But I want to think about the opportunities for you to maybe verticalize gen AI, especially given you are targeting a lot of verticals like health care, financial services, public sector, where, in many cases, you are a system of record. So it feels like there's some potential benefit there. But maybe if you could walk us through how you're thinking about the verticalization opportunity. That would be helpful. And then I've got a quick follow-up.

    兩個給你。首先,我將提出另一個生成式 AI 問題,因為它對每個人來說都是頭等大事。但我想考慮你可能將 gen AI 垂直化的機會,特別是考慮到你的目標是許多垂直領域,如醫療保健、金融服務、公共部門,在許多情況下,你是一個記錄系統。所以感覺那裡有一些潛在的好處。但也許你可以向我們介紹一下你是如何考慮垂直化機會的。那會很有幫助。然後我有一個快速的跟進。

  • Aaron Levie - Co-Founder, CEO & Director

    Aaron Levie - Co-Founder, CEO & Director

  • Yes. So you're spot on that -- the value in AI certainly increases the closer to the business process and the business domain that you can get to, kind of the general productivity horizontal elements are super exciting, very flashy, but the real business value is going to come when you can go to a health care provider and say, we can automate critical workflows of health record reviews or authoring. When you go to a talent agency and say, we can review movie scripts and get them routed to the right talent agent to take a look at or where you can go to finance and have earnings reports being read and kind of key insights being pulled out. .

    是的。所以你發現了這一點——人工智能的價值肯定會隨著業務流程和業務領域的接近而增加,一般的生產力水平元素是超級令人興奮的,非常浮華,但真正的商業價值當你可以去醫療保健提供者那裡說,我們可以自動化健康記錄審查或創作的關鍵工作流程時,它就會到來。當你去一家人才中介公司說,我們可以審查電影劇本並將它們發送給合適的人才代理機構進行查看,或者你可以去哪裡融資並閱讀收益報告並提取一些關鍵見解. .

  • So I think over time, we'll find the sort of pockets of specialization based on critical use cases that we see either being repeatable or where there's heavy kind of customer concentration. And either things like our professional services organization or through partners or through our sales motion, really try and make it easy for customers to adopt those kind of capabilities, and then over time, establish, like, for instance, workflow patterns in Box Relay that might leverage AI through templated approaches that make sense on a per vertical basis. I think you have a lot of ways that this will start to show up within the product that we're just at the early stages of kind of scratching the service up. But I do think the vertical use cases will be one of the ways that this gets really delivered from a value standpoint.

    因此,我認為隨著時間的推移,我們會發現基於關鍵用例的專業化口袋,我們認為這些用例要么是可重複的,要么是客戶高度集中的地方。無論是我們的專業服務組織,還是通過合作夥伴或通過我們的銷售活動,真正嘗試讓客戶輕鬆採用這些功能,然後隨著時間的推移,建立,例如,Box Relay 中的工作流模式可能通過在每個垂直基礎上有意義的模板化方法來利用 AI。我認為你有很多方法可以開始在產品中顯示出來,我們只是在某種程度上抓緊服務的早期階段。但我確實認為,從價值的角度來看,垂直用例將是真正實現這一目標的方式之一。

  • Rishi Nitya Jaluria - Analyst

    Rishi Nitya Jaluria - Analyst

  • Wonderful. Really helpful. And then really quickly, apologies if I missed this. Any color on momentum in Japan and how we should be thinking about that going forward for the rest of the year?

    精彩的。真的很有幫助。然後真的很快,如果我錯過了這個,我深表歉意。日本的發展勢頭有何影響?我們應該如何考慮今年餘下時間的發展?

  • Aaron Levie - Co-Founder, CEO & Director

    Aaron Levie - Co-Founder, CEO & Director

  • Yes. I think just the high-level color would be is still very resilient for us. A lot of great wins in the quarter across everything from government agencies to manufacturers to financial services, so kind of a strong quarter in Japan. And we're still -- we have, we think, reasonable and kind of healthy expectations for the results this year.

    是的。我認為只是高級顏色對我們來說仍然非常有彈性。從政府機構到製造商再到金融服務,本季度在各個方面都取得了很多偉大的勝利,因此在日本是一個強勁的季度。我們仍然 - 我們認為,我們對今年的結果抱有合理且健康的預期。

  • Operator

    Operator

  • Your next question comes from the line of Brian Peterson with Raymond James.

    你的下一個問題來自 Brian Peterson 和 Raymond James 的台詞。

  • Brian Christopher Peterson - Senior Research Associate

    Brian Christopher Peterson - Senior Research Associate

  • And I'll keep it to one, in shocking way, it's an AI question. But Aaron, you mentioned in the past that content on Box is more valuable than content on legacy solutions. There's a lot of megatrends that are driving growth for your business, cloud security, et cetera. How do you view these LLM use cases as like a tipping point in terms of facilitating movement off of these legacy solutions. Is it one of the many or is it game changing? I just want to understand -- I know it's early, but how significant could this be at a high level of for you, I guess, maybe taking a 5- to 10-year outlook?

    我會以令人震驚的方式保持一個,這是一個 AI 問題。但是亞倫,你過去提到過 Box 上的內容比傳統解決方案上的內容更有價值。有許多大趨勢正在推動您的業務、雲安全等方面的增長。您如何將這些 LLM 用例視為促進擺脫這些遺留解決方案的轉折點。它是其中之一還是正在改變遊戲規則?我只是想了解——我知道現在還早,但是這對你來說有多大意義,我想,也許是 5 到 10 年的展望?

  • Aaron Levie - Co-Founder, CEO & Director

    Aaron Levie - Co-Founder, CEO & Director

  • Yes. Great question. So it's actually -- it's probably 2 components. One is the sort of the legacy element. I can't imagine a product architecture -- technical architecture where you could take like a legacy network file share or legacy ECM on-premises system and somehow connect that to GPT4 and reasonably get any kind of experience that would work or be operable that customers would drive value from. So on that standpoint, it totally is -- it should be the nail in the coffin of kind of legacy on-prem content management and infrastructure to the extent they want the use cases that AI delivers. There's another element which is pretty exciting as well that we're starting to see customers just incrementally, but we'll obviously push on this more -- just incrementally start to really understand is fragmented data is just as much of a problem as content and legacy systems. And the reason for that is, let's say, you wanted to solve this problem of -- you want your sales reps and your companies be able to instantly get answers to questions about all of your product catalog. And and you want them to be able to go to an interface and just ask a question of what's the latest pricing for this product. Well, if your data is across lots of different systems, you will run into a bunch of challenges, which is the access permissions of that content might be different across each product, which makes it very, very hard to then reason through that data and ensure that the right people have access to that information. The individual interfaces for those products are going to be totally different for interacting with that data. And so you just want to be able to solve the problem of helping you reason through or understanding -- understand your unstructured content at scale. .

    是的。很好的問題。所以它實際上 - 它可能是 2 個組件。一種是遺留元素。我無法想像一個產品架構——技術架構,你可以像遺留網絡文件共享或遺留 ECM 本地系統一樣,以某種方式將其連接到 GPT4,並合理地獲得任何類型的對客戶有用或可操作的體驗將從中驅動價值。因此,從這個角度來看,它完全是——在他們想要 AI 提供的用例的範圍內,它應該是某種遺留本地內容管理和基礎設施的棺材釘。還有另一個非常令人興奮的因素,我們開始逐漸看到客戶,但我們顯然會進一步推動這一點——逐漸開始真正理解碎片化數據與內容和內容一樣是一個問題,遺留系統。其原因是,比方說,您想解決這個問題——您希望您的銷售代表和您的公司能夠立即獲得有關您所有產品目錄的問題的答案。並且您希望他們能夠進入一個界面並詢問該產品的最新定價是多少。好吧,如果您的數據分佈在許多不同的系統中,您將遇到一系列挑戰,即該內容的訪問權限可能在每個產品中都不同,這使得通過該數據進行推理變得非常非常困難,並且確保合適的人可以訪問該信息。這些產品的各個接口在與數據交互時將完全不同。因此,您只想能夠解決幫助您推理或理解的問題——大規模理解您的非結構化內容。 .

  • And so we think this increasingly is going to cause enterprises to really start to pay attention to their content architecture, how is their content managed? Where is it managed? How fragmented is it? How do they get it into a spot with access controls and security and privacy that works in a modern way that they can bring AI to? And so even beyond the legacy element, the fragmentation element of content today we think customers are going to pay a lot more attention to having to do a couple of sessions with 2 groups of about kind of 20 or so CIOs from Fortune a couple of hundred companies, and you could see there's sort of eyes light up to the challenge that they're about to run into with content architecture. And a significant portion of these customers were not Box customers. They were just across the industry. And for the first time, they realized both simultaneously how much value was in their content because you could start to ask all of this unstructured data questions, and at the exact same time that they don't have the architecture that will let them get value out of that data based on the current course and speed that their infrastructure is running on. So we think it's going to bring up a really compelling, exciting conversations for companies. And we're going to come to the table pretty hard on the message and then make sure that we have the best platform for working with content in AI.

    所以我們認為這將越來越多地導致企業真正開始關注他們的內容架構,他們的內容是如何管理的?它在哪裡管理?它有多分散?他們如何通過訪問控制、安全和隱私,以現代方式工作,讓他們可以將 AI 帶入其中?因此,即使在遺留元素之外,今天內容的碎片化元素我們認為客戶將更加關注必須與 2 組大約 20 名左右來自財富的 CIO 進行幾次會議公司,你可以看到有些人對他們將要遇到的內容架構挑戰充滿了熱情。這些客戶中有很大一部分不是 Box 客戶。他們只是在整個行業。他們第一次同時意識到他們的內容有多少價值,因為你可以開始問所有這些非結構化數據問題,同時他們還沒有讓他們獲得價值的架構根據他們的基礎設施運行的當前路線和速度從這些數據中提取出來。因此,我們認為這將為公司帶來真正引人注目、令人興奮的對話。我們將非常努力地討論信息,然後確保我們擁有處理 AI 內容的最佳平台。

  • This concludes our question-and-answer session for today. I now would like to turn the call back to Cynthia Hiponia.

    今天的問答環節到此結束。我現在想把電話轉回 Cynthia Hiponia。

  • Cynthia Hiponia - VP of IR

    Cynthia Hiponia - VP of IR

  • Great. Thank you, everyone, for joining this afternoon, and we look forward to updating you on our next earnings call.

    偉大的。謝謝大家今天下午的加入,我們期待在下一次財報電話會議上為您更新。

  • Operator

    Operator

  • This concludes today's conference. You may now disconnect.

    今天的會議到此結束。您現在可以斷開連接。