BOX - Box: Demonstrating Resiliency

2024-03-07 06:26:58 ET

Summary

• Box's Q4 earnings results have proven the mainstream thinking wrong, with a re-acceleration in billings growth rates.
• The bull case for Box includes a major TAM, attractive cross-sell opportunities, AI advantages, and steady profit margin growth.
• The company is guiding to 5% y/y revenue growth in FY25 alongside ~3 points of operating margin expansion. It is refocusing its hiring efforts to Poland to reduce expenses.
• The stock remains quite cheap at <4x forward revenue.

We're now well through the Q4 earnings season, and so far, it has proven to be quite a volatile one, with many growth stocks sliding or jumping sharply on quarterly releases. Notably, there have been upside surprises in many stocks that have been thought to be "dead money," including Box ( BOX )....

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