Box,Inc。(BOX) 首席执行官 Aaron Levie 在 2020年 第一季度业绩 - 收益电话会议记录

[机器翻译] 电话会议 · 2019年06月07日 · 163 次阅读 · Box Inc

Box, Inc. (NYSE:BOX) Q1 2020 Earnings Conference Call June 3, 2019 5:00 PM ET



Alice Lopatto - Head, Investor Relations
Aaron Levie - Chief Executive Officer
Dylan Smith - Chief Financial Officer

  • Alice Lopatto - 投资者关系主管
  • Aaron Levie - 首席执行官
  • 迪伦史密斯 - 首席财务官


Ittai Kidron - Oppenheimer
Phil Winslow - Wells Fargo
Melissa Franchi - Morgan Stanley
Rob Owens - KeyBanc Capital Markets
Matt Coss - JPMorgan
Chad Bennett - Craig-Hallum
Michael Turrin - Deutsche Bank
Erik Suppiger - JMP Securities

  • Ittai Kidron - 奥本海默
  • Phil Winslow - 富国银行
  • Melissa Franchi - 摩根士丹利
  • Rob Owens - KeyBanc Capital Markets
  • 马特科斯 - 摩根大通
  • Chad Bennett - Craig-Hallum
  • 迈克尔图尔 - 德意志银行
  • Erik Suppiger - JMP证券


Good afternoon. My name is Josh, and I will be your conference operator today. At this time, I would like to welcome everyone to Box Inc.'s First Quarter Fiscal 2020 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.
Alice Lopatto, Head of Investor Relations, you may begin.

下午好。 我叫Josh,今天我将成为您的会议运营商。 在这个时候,我想欢迎大家参加Box Inc.的2020财年第一季度财务业绩电话会议。 所有线路都已静音以防止任何背景噪音。 发言者发言后,将会有一个问答环节。 [操作员说明]谢谢。

您可以开始投资者关系主管Alice Lopatto。

Alice Lopatto

Good afternoon, and welcome to Box's first quarter fiscal 2020 earnings conference call. On the call today, we have Aaron Levie, our CEO; and Dylan Smith, our CFO. Following our prepared remarks, we will take questions.
Today's call is being webcast and will also be available for replay on our Investor Relations website at Our webcast will be audio only. However, supplemental slides are now available for download on our website. We will 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 Q2 and FY2020 financial guidance and our expectations regarding our financial performance, for fiscal 2020 and future periods, timing of and market adoption of our products, our markets and market size, our operating leverage, our expectations regarding maintaining positive free cash flow, future profitability and unrecognized revenues and remaining performance obligation, our planned investments and growth strategies, our ability to achieve our long-term revenue and other operating model targets and expected timing and benefits from our new products and partnerships. These statements reflect our best judgments based on factors currently known to us and actual events or results may differ materially.
Please refer to the press release and the risk factors in 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. These forward-looking statements are being made as of today, June 3, 2019 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 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 in the related PowerPoint presentation, 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.
With that, let me hand it over to Aaron.

下午好,欢迎参加Box的2020财年第一季度财报电话会议。在今天的电话会议上,我们有首席执行官Aaron Levie

Aaron Levie

Thanks, Alice, and thanks, everyone, for joining the call today. Before we talk about Q1 results, we want to take the time today to give you some additional insight in how our business has been evolving and how we are seeing our strategy play out in our results this year.
Enterprises need a cloud content management platform that powers business process automation, secure collaboration across best-of-breed apps and easy custom development for creating new digital experiences and replacing legacy enterprise content management systems. To address this demand, we've been evolving our product to extend our cloud content management capabilities. Simultaneously, we have been advancing our go-to-market strategy to focus more on customer-oriented solution selling. Together, these two initiatives are aimed at transitioning our customers to leveraging Box as a complete platform for secure content management in workflow and collaboration.
When our customers use the full suite of our cloud content management solutions, we see dramatically higher average contract value and better retention, leading to greater lifetime value for Box. The key indicator of our success in driving this transition is the adoption of our add-on products, which is why we focus on the attach rates and the growth of products like Box Governance, platform and Relay and in the future Box Shield.
We're seeing tremendous success from our add-on products, and in the past quarter our add-on product revenue grew by 57% year-over-year. The demand for Box remains strong and continues to grow. While our larger more complex deployments do tend to have longer deal cycles, we believe that our go-to-market initiatives in combination with our expanded product portfolio will enable us to improve sales productivity and meet the growing demand for cloud content management. Even as our strategy remains focused on driving long-term revenue growth, we will increasingly look to balance our growth with greater profitability.
Now turning to Q1. We delivered wins and expansion with major customers including BT Group, Blackboard, Nintendo Europe, Rémy Cointreau Group and Dignity Health. Revenue was $163 million, up 16% year-over-year. Non-GAAP EPS improved to negative $0.03 versus negative $0.07 in the same quarter a year ago, and free cash flow was positive $13.4 million, an improvement of $6.2 million versus Q1 last year.
In the quarter, we closed three deals worth more than $1 million versus one a year ago, six deals over $500,000 versus four a year ago and 33 deals greater than $100,000 versus 35 a year ago. While we closed slightly fewer $100,000 deals than we anticipated, we are encouraged by the fact that we saw a record 90%-plus of these deals include at least one add-on product. This result compares to two-thirds of $100,000 deals including multiple products in Q1 a year ago.
We are building the category defining cloud content management platform and this year, we have the most exciting product road map in our company's history.



当我们的客户使用我们的全套云内容管理解决方案时,我们看到平均合同价值显着提高,保留率更高,从而为Box带来更高的终身价值。我们成功推动这一转变的关键指标是采用我们的附加产品,这就是为什么我们专注于附加率和Box Governance,平台和Relay以及未来Box Shield等产品的增长。


现在转向Q1。我们与BT集团,Blackboard,Nintendo Europe,RémyCointreauGroup和Dignity Health等主要客户进行了胜利和扩张。收入为1.63亿美元,同比增长16%。同比去年同期非GAAP每股盈利改善至负0.03美元,而负0.07美元,自由现金流为正1340万美元,较去年第一季度增加620万美元。



In May, we announced the all-new Box Relay, our Workflow automation solution and one of the most critical capabilities for our customers as they begin to leverage Box to drive and automate critical business processes. Relay will power content-centric processes across the enterprise ranging from customer and employee on-boarding to document review and approval in sales marketing finance and more.
Today, these use cases are either not served at all or are being served poorly by rigid costly legacy systems. With the all-new Box Relay, we are the only solution that delivers secure content management workflow and collaboration in a single cloud platform. Further, because Box Relay is now built natively on Box, it benefits from our infrastructure security, compliant features and our deep integrations with other business process management tools as well as best-of-breed applications like Okta, Slack, Zoom and Salesforce.
Customers recognize our increasing ability to improve critical business processes that are not solved today by legacy ECM systems like SharePoint, Documentum and OpenText. Several big deals closed in Q1 were direct replacements of SharePoint and other legacy systems. For example, BT Group purchased Box to power business processes for the company's BT global division. Box will act as the content layer to BT's bid management process integrating with Salesforce and centralizing content across BT global.
Box will enhance the way the organization works internally and improve the digital engagement experience for their customers. A central bank purchased Box platform to build applications that will enable them to engage with third-party stakeholders such as auditors, other government entities and commercial parties. With the implementation of Box Platform, the bank will replace SharePoint in an effort to shift critical processes to a modern technology stack.
And finally, a large global investment bank purchased Box in a seven-figure deal to replace a homegrown legacy content management system. Box Platform will serve as the company's content layer for developing new engagement experiences for regulators, managing M&A deals and on-boarding new clients. In addition to platform, the firm also purchased Box Governance, KeySafe and Box Zones. Based on this traction and the new capabilities coming with Box Relay and the other new products like Box Shield later this year, we are excited to drive continued innovation in cloud content management and go after the $40 billion-plus market for content and collaboration.
Also in Q1, we made good progress on the evolution of our go-to-market efforts enabling us to accelerate our customers' digital transformation through our solution-selling strategy. As we have discussed, we are working to further improve our execution through hiring and promoting world-class sales leadership around the world, updating sales compensation plans tied to solution selling, improving sales training and operational rigor and introducing our first enterprise suites.

5月,我们宣布推出全新的Box Relay,我们的工作流程自动化解决方案,以及客户开始利用Box推动和自动化关键业务流程时最关键的功能之一。 Relay将推动整个企业以内容为中心的流程,从客户和员工入职到销售营销财务等方面的文档审核和批准。

今天,这些用例要么根本没有服务,要么被严格昂贵的遗留系统服务不佳。借助全新的Box Relay,我们是唯一能够在单一云平台中提供安全内容管理工作流和协作的解决方案。此外,由于Box Relay现在在Box上本地构建,因此它受益于我们的基础架构安全性,兼容功能以及与其他业务流程管理工具以及Okta,Slack,Zoom和Salesforce等最佳应用程序的深度集成。

客户认识到我们日益增强的改进关键业务流程的能力,这些流程目前尚未被SharePoint,Documentum和OpenText等传统ECM系统解决。第一季度关闭的几项重大交易是直接替代SharePoint和其他遗留系统。例如,英国电信集团(BT Group)购买了Box,为该公司的BT全球部门提供业务流程。 Box将作为BT的投标管理流程的内容层,与Salesforce集成并集中BT全球的内容。


最后,一家大型全球投资银行以七位数的价格收购Box,以取代本土的传统内容管理系统。 Box Platform将作为公司的内容层,为监管机构开发新的参与体验,管理并购交易和加入新客户。除平台外,该公司还购买了Box Governance,KeySafe和Box Zones。基于这种牵引力以及今年晚些时候Box Relay和Box Shield等其他新产品的新功能,我们很高兴能够推动云内容管理的持续创新,并追逐价值超过400亿美元的内容和协作市场。


Now in addition to selling our advanced cloud content management products like Box Platform Governance and Relay as separate product add-ons, we will be offering new digital workplace and digital business suites that consolidate these and other offerings into simple bundles that are aligned to our customers' cloud content management use cases. We are seeing increasing demand from our strategic customers to buy our full suite of solutions and we expect these suites to be an enabler for a more streamlined sales process and a higher average contract value.
Overall, with our combination of a large installed base of enterprise customers, strong product road map of advanced capabilities and a focus on improved sales productivity, we feel confident in our ability to meet the opportunities ahead. Before I hand it over to Dylan, I also like to briefly talk about the continued evolution of our Board and leadership team. First, Tom Addis who joined Box in 2012 and who has led global sales since January 2018 will be moving on from the company. We like to thank Tom for his many contributions to Box over the years.
We are in the late stages of hiring a strong candidate to be our new global sales leader who will report directly to our COO, Stephanie Carullo. Next, as we announced a few weeks ago, Peter Leav will be joining the Board of Directors later this month. Peter was most recently President and CMO of BMC Software and prior to that served as the President and CEO of Polycom. Peter's experience scaling and leading multi-billion dollar enterprise technology businesses will be a fantastic addition to our Board. Also over the past 12 months, we have added Sue Barsamian and Kim Hammonds to our Board. Together with Peter, the collective expertise leading global companies driving strategic vision and executing with operational rigor is invaluable to Box as we continue to scale our business.
Lastly, we were thrilled to congratulate Dana Evan who has been an independent director on our Board since December 2011 on being named 2019's director of the year by the National Association of Corporate Directors. Congratulations, Dana.
With that, I'll hand it over to Dylan.

现在除了将Box Platform Governance and Relay等先进的云内容管理产品作为单独的产品附件销售外,我们还将提供新的数字工作区和数字业务套件,将这些和其他产品整合到与客户一致的简单捆绑中。 '云内容管理用例。我们看到战略客户越来越需要购买我们的全套解决方案,我们希望这些套件能够成为更简化的销售流程和更高的平均合同价值的推动者。

总体而言,通过我们结合大量安装的企业客户群,强大的先进功能产品路线图以及专注于提高销售效率,我们对能够应对未来机遇充满信心。在我交给Dylan之前,我还想简要谈谈我们董事会和领导团队的持续发展。首先,2012年加入Box并自2018年1月以来一直领导全球销售的Tom Addis将继续从公司转移。我们要感谢Tom多年来为Box做出的许多贡献。

我们正处于聘请一位优秀候选人成为我们新的全球销售领导者的后期阶段,他们将直接向我们的首席运营官Stephanie Carullo汇报工作。接下来,正如我们几周前宣布的那样,Peter Leav将于本月晚些时候加入董事会。 Peter最近担任BMC Software的总裁兼首席营销官,之前担任Polycom的总裁兼首席执行官。彼得在扩展和领导价值数十亿美元的企业技术业务方面的经验将成为我们董事会的绝佳补充。同样在过去的12个月里,我们将Sue Barsamian和Kim Hammonds加入我们的董事会。与Peter一起,领导全球公司推动战略愿景和执行操作严谨的集体专业知识对Box而言非常宝贵,因为我们将继续扩展业务。

最后,我们很高兴地祝贺自2011年12月以来一直担任董事会独立董事的Dana Evan被全国公司董事协会评为2019年度董事。恭喜,达娜。



Thanks, Aaron. Good afternoon, everyone, and thank you for joining us today. Q1 was a solid start to the year as we closed a record percentage of large deals with add-on products while delivering continued leverage in our bottom-line results including strong improvement in operating margin and free cash flow generation. While we still have work to do, we are seeing good traction in our solution-selling initiatives and we are very focused on improving our sales efficiency and overall growth rate over time.
We delivered revenue of $163.0 million in Q1, up 16% year-over-year. 24% of this revenue came from regions outside of the United States. And in Q1 we saw continued strength in Japan and improvement in certain regions in EMEA.
A year ago we adopted the ASC 606 accounting standard and as part of our adoption, we have begun disclosing our remaining performance obligations or RPO which represent non-cancelable contracts that we expect to recognize as revenue in future periods.
RPO consists of deferred revenue and backlog offset by contract assets. Moving forward we'll be emphasizing our RPO which we believe is a more comprehensive indicator of our momentum and growth potential than billings and is consistent with GAAP accounting.
Our RPO ended Q1 at $637 million up 16% year-over-year. We expect to recognize roughly 66% of this RPO over the next 12 months. First quarter billings came in at $118.4 million representing 1% calculated and 4% adjusted billings growth year-over-year in line with expectations we referenced in our last earnings call.
As we discussed on that call, our Q1 billings faced a very difficult year-over-year comparison including an unusually high volume of multi-year prepays and billings for the nonrecurring enhanced developer fee in the year-ago period as well as a reduction from a single large customer that we mentioned on our last call.
In the second quarter, we expect calculated billings growth to be in the mid-single digit range which reflects a roughly two percentage point headwind from the developer fee to be billed in Q2 of the prior year.
We expect calculated billings in the second half of this year to track more closely to revenue growth noting that after Q3 the prior year's enhanced developer fee will no longer impact our year-over-year comparisons.
Turning to margins, non-GAAP gross margin came in at 72.3% versus 74.4% a year ago. As a reminder we're in the midst of a multi-year migration of our data center footprint to lower-cost regions as part of our hybrid hosting strategy. We plan to complete this migration by the middle of next year, so during this migration we will be occupying redundant co-location facilities resulting in temporary lower gross margins.
As such while we achieve continued efficiencies from our hosting architecture and the timing of new data centers coming online, we continue to expect gross margin for the remainder of FY '20 to range from 70% to 71%. Once we complete this migration and as we continue to drive efficiencies in our infrastructure, we expect our gross margin to trend upwards starting in the back half of FY '21.



一年前,我们采用了ASC 606会计准则,作为我们采用的一部分,我们已经开始披露我们的剩余履约义务或RPO,它们代表我们期望在未来期间确认为收入的不可取消合同。








In Q1 we continue to see our business model and economies of scale drive greater efficiency and leverage across the business. Sales and marketing expenses in the quarter were $69.4 million representing 43% of revenue, a significant reduction from 49% in the prior year.
Looking ahead, we expect to generate additional leverage in sales and marketing as more of our revenue comes from renewals and upsells which are more profitable and as we improve sales productivity by executing on larger strategic solution sales.
As a reminder to provide some context, we grew our sales force by 12% last year. This year we will focus over sales hiring in segments where we've been executing well and seeing strong productivity trends and we now expect to grow our sales force in the mid-single digit range in FY '20 versus our prior target of 10% to 15%.
With our existing sales force and planned hiring, we believe we have the right quantity and quality of sales capacity to deliver on our growth targets. Next research and development expenses were $33.3 million or 20% of revenue flat with the year ago even as we see significantly enhanced our cloud content management product offerings including the continued development of Box Relay and Box Shield.
Our general and administrative costs were $18.2 million or 11% of revenue compared to 12% in Q1 of last year. We expect to drive continued leverage in G&A as we benefit from greater operational excellence and scale.
Total Q1 operating expenses represented 74% of revenue compared to 81% a year ago, so despite our temporarily lower gross margin, we are able to drive our Q1 non-GAAP operating margin to a strong five percentage point improvement year-over-year coming in at negative 2% versus negative 7% a year ago.
As a result, non-GAAP EPS came in at negative $0.03 an improvement from negative $0.07 a year ago and above the high end of our guidance. We ended Q1 with a net retention rate of 107% down slightly from last quarter. This result was impacted primarily by the single large customer reducing its footprint that we mentioned previously which will continue to impact our net retention rate for the next several quarters as a result of how we calculate this metric.
In Q1 our full churn rate was 4.2% on an annualized basis. As customers increasingly adopt additional products either in their initial purchase or as a cross sell over time they become significantly stickier. Our net expansion rate was 12% on an annualized basis stable with the prior two quarters and primarily driven by strong seat growth in existing customers and cross sells of our add-on products.
For the fourth consecutive quarter we've seen an improvement in our price per seat on a year-over-year basis mainly as a result of the higher product attach rates we mentioned earlier. We now have 12.2 million paid users.
Let me now move on to our balance sheet and cash flow. We ended the quarter with $231.4 million in cash, cash equivalents and restricted cash up from $217.5 million a year ago. We delivered cash flow from operations of $25.5 million compared to $18.4 million a year ago.



作为提供一些背景信息的提醒,我们去年的销售额增长了12%。今年我们将专注于我们一直表现良好且看到强劲的生产力趋势的细分市场的销售招聘,我们现在预计我们的销售人员将在20财年的中位数范围内增长,而之前的目标是10%。 15%。

凭借我们现有的销售队伍和计划的招聘,我们相信我们拥有合适的数量和质量的销售能力来实现我们的增长目标。与去年同期相比,下一次研发费用为3330万美元,占收入的20%,即使我们看到我们的云内容管理产品大幅增强,包括继续开发Box Relay和Box Shield。







In Q1 total CapEx was $1.6 million versus $4 million a year ago. Capital lease payments which we factor into our free cash flow calculation were $9.2 million versus $7.2 million a year ago. We expect CapEx and capital lease payments combined to be roughly 6% to 7% of revenue, both in Q2 and for the full year of FY '20.
Finally, we generated $13.4 million of free cash flow in the first quarter or 8% of revenue. This was up more than 80% compared to $7.3 million in free cash flow generation a year ago. Before turning to our guidance, as Aaron mentioned, I wanted to discuss the progress we've made in selling multiple products and the strong economics of those customer segments.
As we've noted in the past, our customers are increasingly choosing to augment our core product capabilities with add-on products, enabling them to more fully realize the value of Box as a cloud content management platform. We are in a strong position to capitalize on our cloud content management opportunity as we build on the early momentum we've delivered in our solution-selling efforts. The revenue we generated from of our add-on products was up 57% year-over-year, now representing 14% of our revenue run rate in Q1 versus 10% a year ago.
Looking at our total recurring revenue base, in Q1, 89% of this revenue was generated by customers paying $5000 or more annually. Of this base, customers who have purchased add-on products to support higher value use cases now account for just over half of our annual recurring revenue up from mid-30% a year ago and mid-20% two years ago. These customers have average contract values that are four times larger and churn rates that are two-thirds lower than the customers who have not yet purchased any add-on products. In the future, we expect to launch the all-new Relay and Shield to drive further adoption of more sophisticated use cases and improved customer economics.
With that, let's now turn to our guidance for the full year of fiscal 2020. In light of our anticipation of longer sales cycles across our larger deals, we now expect revenue to be in the range of $688 million to $692 million. We are focused on delivering our first year of non-GAAP profitability this year and we now expect our FY '20 non-GAAP EPS to be in the range of $0.00 to positive $0.02 on approximately 155 million diluted shares.
Our GAAP EPS is expected to be in the range of negative $1.05 to negative $1.03 on approximately 148 million shares. For the second quarter of fiscal 2020, we are setting revenue guidance in the range of a $169 million to $170 million. We expect our non-GAAP EPS to be in the range of negative $0.02 to negative $0.01 and for our GAAP EPS to be in the range of negative $0.29 to negative $0.28 on approximately 147 million shares.
As we have seen and communicated, our larger enterprise deals are more complex with longer sales cycles. However, these deals result in higher value stickier customers, which are becoming a larger proportion of our total revenue base. This mixed shift gives us confidence that we can achieve revenue growth rate improvements in FY '21 and beyond on our path to achieving $1 billion in revenue.








Given we are in the midst of driving this cloud content management evolution, we believe it is no longer prudent to pinpoint a specific time frame for achieving this $1 billion millstone. As we think about shaping our business model, we will increasingly look to balance growth and profitability. While our strategy remains focused on long-term revenue growth, we will continue to drive margin expansion across the business.
Based on this principle of taking a balanced approach to growth, we are committing to deliver a non-GAAP operating margin of 6% to 7% in FY '21. From a longer term point of view, we expect that in FY '23, three years from now, the sum of our revenue growth and non-GAAP operating margin will be roughly 30%. We remain confident that our market opportunity and leadership position in cloud content management set us up nicely for profitable growth. We are very excited by this year's product road map, which will allow us to build on the CCM momentum.
With that, I would like to open it up for questions. Operator?





[Operator Instructions] And your first question comes from Ittai Kidron with Oppenheimer. Your line is open.

[操作员说明]你的第一个问题来自Ittai Kidron和Oppenheimer。 你的线是开放的。

Ittai Kidron

Thanks. First of all, congratulations to you, Aaron on your -- the recent addition to your family.

谢谢。 首先,祝贺你,Aaron对你 - 最近加入了你的家人。

Aaron Levie

Thank you.


Ittai Kidron

Maybe we can dive into the crux of what's going on. I guess, in a way you're kind of shifting to going deep rather going -- rather than going wide with customers. Help us think about as you look at this past quarter, you certainly have some expectations heading into the quarter. What has kind of worked to your expectations in the quarter and what has not? And this elongation of sales cycles given the complexity of the deal, how much of that is you still selling the solutions siloed? Is the bundle approach already in effect and is it impacting the sales cycle? Or is that going to help or not? Is that ahead of us or behind us? Help us -- help me understand that.

也许我们可以深入了解正在发生的事情的关键。 我想,从某种程度上说,你正在转向深入而不是向前迈进 - 而不是与顾客一起走向广阔。 帮助我们考虑一下你在上个季度看到的情况,你肯定对本季度有一些期望。 什么样的工作符合你在本季度的期望,什么没有? 鉴于交易的复杂性,销售周期的延长,您还在销售解决方案的多少? 捆绑方法是否已经生效,是否会影响销售周期? 或者这会有所帮助吗? 这是在我们之前还是在我们之后? 帮助我们 - 帮助我理解。

Aaron Levie

Yes. So I think Q2 was certainly a great example of our add-on products overall contributing heavily to our big deals especially if you look at kind of the $1 million and $500,000-plus categories. And this is -- before we even had the bundles and the product suites that you just mentioned. So what we are seeing is that more and more of our strategic customers that are spending more than $100,000 with us are using multiple one or more add-on products like Box Governance, Box Platform and that is enriching their use cases. It is obviously and dramatically expanding their average contract value. It's improving their customer retention. And so our introduction of product suites, which goes live this month in June, is meant to accelerate and streamline the adoption of those add-on products.
So we have two suites that are going to be coming live in market. One is a digital workplace suite, which includes Box Governance, as well as the core product. And then we have the digital business suite, which includes Box Platform and Box Relay.
And customers now on a single-line item are going to be able to buy those multiple products all together and we think that's going to dramatically streamline how customers are driving this add-on products. We’re seeing pretty significant amount of demand already internally from our sales force, which we think is representative of the demand that we’re seeing outside from customers for those suites. So we're very excited about what that momentum looks like.
And I think as you think about the commentary on this call, we are seeing that as you do these much bigger deals that does lengthen the sales cycles. Although at the end of that results is much larger deals, much bigger customer’s, way greater retention, and that's obviously a really good thing for the business. So this is going to -- this is a mixed shift that's playing out in the business, but we see there's a tremendous amount of upside as a result of that.

在美国,本地客户的表现一直是积极的。 但我们在美国客户中看到了一定程度的谨慎。...

Ittai Kidron

Very good. Help me think about the suites. I guess, when you think about the guidance for the year, I mean is there an assumption that the suites help accelerate transactions? Or that assumption is still not worked into your expectations? And also help me think about the price discount that's implied in the suite approach?

很好。 帮我看一下套房。 我想,当你考虑今年的指导时,我的意思是假设套件有助于加速交易吗? 或者这个假设仍未达到您的期望? 还有助于我思考套件方法中隐含的价格折扣吗?

Aaron Levie

Yeah. So to the extent possible the suites are, obviously, baked into our guidance although because they don't exist yet, we only have a certain amount that we've been able to simulate. But because they launch in the first half of the year in our Q2, it won't have any impact really on our first half results. And so that's tied to our guidance, and we do think that they'll become a big contributor to the growth especially at the tail end of this year.
So -- but there does remains an upside on that, but we want to wait for that to play out a bit more. But again we’re seeing a lot of really good demand within the sales force internally and then generating some of that demand directly from customers as well as we've been starting message the suites to customers.
In terms of discounting, there's a marginal discount when you are on per product basis when you buy the suite of all of our solutions. However, the -- we expect the average price per seat to actually be positive as a result of customers buying these suites. So we would actually expect on a like-for-like basis that the price per seat for customers that purchase these suites will be much higher when a customer buys the suite.
So you'll get a discount on a per product basis versus list price of those products but the customer will be paying more per user within their organization as a result of buying into one of our product suites.


所以 - 但确实仍有上升空间,但我们希望等待更多时间。但是我们再一次看到销售人员内部有很多非常好的需求,然后直接从客户那里产生一些需求,我们也开始向客户发送消息。



Ittai Kidron

Got it. And just to clarify, when someone – would customer still be able to buy the product siloed? Or suite is the only way for them to buy products going forward?

得到它了。 只是为了澄清,当有人 - 客户仍然能够购买孤立的产品? 或者套房是他们购买产品的唯一途径吗?

Aaron Levie

For now they can still buy the product siloed. We do know plenty of cases where a customer might want a very specific add-on, especially something like Box Platform, although we do expect that this will continue to help improve and involve our sales motion.
We'd like to be showing up to customers with a full range of solutions in our sales motion as opposed to a much more piecemeal approach in the sales process. And so the ability to be able to sell the full suite of capabilities all at once to customers and ensure that they can get the full value of Box, we think it's going to be really impactful to sales productivity. And again the demand that we’re seeing internally from our sales force, I think is quite indicative of how important this is going to be to our sales motion overall.

目前他们仍然可以购买孤立的产品。 我们确实知道很多情况下客户可能想要一个非常具体的附加组件,特别是像Box平台这样的东西,尽管我们确实希望这将继续帮助我们改进和参与我们的销售动作。

我们希望在销售过程中向客户展示全方位的解决方案,而不是在销售过程中采用更为零碎的方法。 因此,能够一次性向客户销售全套功能并确保他们能够获得Box的全部价值的能力,我们认为这将对销售生产力产生真正的影响。 我认为,我们从销售人员内部看到的需求再次表明了我们对整体销售活动的重要性。

Ittai Kidron

Very good. Good luck.

很好。 祝好运。

Aaron Levie

Thank you.



Your next question comes from Phil Winslow with Wells Fargo. Your line is open.

你的下一个问题来自富国银行的菲尔温斯洛。 你的线是开放的。

Phil Winslow

Hi, guys. Thank you very much for taking my question. Just wanted to focus on a couple of items. First you made a commentary about you growing the sales force this year, mid-single-digit. And then the next one you talked about next year, 6% to 7% operating margin. And beyond that you are going to get 30% op margin post revenue growth.
I guess, if you think coming through the progression there kind of walk me through the process of why you lowered the sales force head count for this year, and then I guess kind of extrapolate that through, how you think of your comment to that accelerating growth even next year and beyond, kind of just walk me through the thought process and I guess the path there?

嗨,大家好。 非常感谢您提出我的问题。 只是想专注于几件事。 首先,您对今年销售人员的增长做了评论,中位数为中位数。 接下来你谈到的下一个,运营利润率为6%到7%。 除此之外,您将获得30%的运营利润收入增长。

我想,如果你想通过这个过程,我会告诉我为什么你降低了今年销售人员的人数,然后我想有点推断,你如何看待你的评论加速 即使是明年及以后的增长,只是带我走过思考过程,我想那里的路径?


Sure. So this is Dylan. As a reminder and as we said on the call, we grew our sales force last year by about 12% with a focus in terms of expanding our sales force in the fields. Many of those reps are still ramping through this period and will be throughout the year. And then we have initially targeted growth in the 10% to 15% range, which [indiscernible] through that mid-single-digit range. And really the focus there is on driving more in terms of sales productivity and really doubling down on a lot of the efforts there.
As we mention we've been very focused on only increasing hiring and really focusing in the regions where we have seen strong productivity trends and improvements. And so depending on how especially some of these new products play out and some of the leadership changes that we made in certain key regions around the world as we start to see pipeline generation and sales kick into gear, we would modify the hiring plans accordingly. But at this stage, we think that growth rates based on some of the trends that we’re seeing in the various sales regions that we have is the right kind of balance of growth and profitability, and allows us to generate pretty significant leverage in that line item over time as well.



Phil Winslow

Got it. Okay. Thanks guys. And then in terms of just the changes you're making to the go-to-market, obviously, you talked about some of the personnel changes there. Anything in terms of a process that's changing now call it the quarter end of the fiscal year that you highlighted and how you think about sort of that playing out over the course of this year into next year?

得到它了。 好的。 多谢你们。 然后就你正在进入市场的变化而言,显然,你谈到了那里的一些人事变动。 现在正在改变一个过程的任何事情都称之为你强调的财政年度的季度结束,以及你如何看待今年到明年的那种情况?


Yes. So, we've been making a bunch of changes around just the overall operational rigors, especially, with our big deals. While that didn't yet show up in the $100,000 result, obviously, we saw a healthy improvement in the $500,000, $1 million results in Q1 and we actually are seeing a pretty significant pipeline of the $100,000-plus deals overall, especially, in Q2 and beyond. So, we're feeling pretty good about a lot of the operational rigor that has been put into place.
Additional -- additionally, I would say that there's been pretty significant improvement in sales training and in the enablement function around solution selling. So, again, this ability to take our horizontal platform and the capabilities around that platform and ensure that it is aligned to our customers' biggest pain points which is obviously what solution telling us all about.
And I think as a result of that you're seeing actually more and more wins and take outs against legacy enterprise content management players. So, especially, in Q1, we saw an increase in being able to go and take out products like SharePoint, Documentum, and other legacy ECM systems. So, as we move upmarket what that's going to result in is obviously much larger deals, but being able to drive these much more strategic transactions for our customers. So, that's really what the sales operations efforts have been all about and I think we're seeing some really good signs early on in the year that is playing out in a very fruitful way.


附加 - 另外,我会说销售培训和解决方案销售的启用功能已经有了相当大的改进。所以,再一次,这种能力可以利用我们的横向平台和​​围绕该平台的能力,并确保它与客户最大的痛点保持一致,这显然是解决方案告诉我们所有的问题。


Aaron Levie

And just to build on that and kind of circle back to the question you had about the growth rate Phil is why we remain confident in targeting in our ability to improve our revenue growth rate even with this sales hiring plan is that the foundational components are all there. So, we've talked through the sales leadership up level that we've seen in key regions.
And we do have, with our current planned hiring, sufficient sales capacity as well as pipeline coverage this year to deliver against those growth targets and to make that happen. So, as mentioned that combined with a solid cloud content management traction that we've been seeing that it is better growth rate in overall economics, those are some the key drivers that lead us to that level of confidence.

只是为了建立这个和那个回到你对增长率的问题的圈子菲尔就是为什么我们仍然有信心瞄准我们提高收入增长率的能力,即使这个销售招聘计划是基础组件都是 那里。 因此,我们已经讨论了我们在关键地区看到的销售领导水平。

而且,凭借我们目前的计划招聘,我们确实拥有足够的销售能力以及今年的管道覆盖率,以实现这些增长目标并实现这一目标。 因此,如前所述,结合坚实的云内容管理牵引力,我们已经看到整体经济中的增长率更高,这些是导致我们达到这种信心水平的关键驱动因素。

Phil Winslow

Got it. Thanks guys.

得到它了。 多谢你们。


Your next question comes from Melissa Franchi with Morgan Stanley. Your line is open.

你的下一个问题来自Melissa Franchi和摩根士丹利。 你的线是开放的。

Melissa Franchi

Great. Thanks for taking my questions. Aaron when we spoke last quarter you talked about elongating sales cycles and some deals that had slipped from Q4. Coming into Q1, did the sales cycle elongate further than what you saw last quarter? And if so, what gives you confidence that it's simply because you're doing more strategic selling versus maybe something more fundamental or execution driven?

非常好。 谢谢你回答我的问题。 Aaron在上个季度发表演讲时谈到了延长销售周期和一些从第四季度开始下滑的交易。 进入第一季度,销售周期是否比上一季度的销售周期更长? 如果是这样,那么是什么让你有信心只是因为你正在进行更具战略性的销售而不是更基本的或执行驱动的?

Aaron Levie

Yes. So, overall, I think we're seeing a really strong pipeline buildup throughout the year with pretty clear kind of close dates in a very measurable way across the business. So, I don't know that we are seeing an increase in the sale cycle length from where we were three months ago. I think we're just getting a better sense for it overall though as it relates to the financial model this year.
And then of course things are ultimately tilting a little bit more back-end-oriented just given the deal sizes that they we were working, aligning the customers' budget in the second half of the year. So, overall, we do feel pretty confident in the predictability of these bigger deals. But it has overall -- the sales cycles have lengthened from maybe where we were one or two years ago and that's been the shifts in the model that we're seeing.

是。 总的来说,我认为我们全年都看到了非常强大的管道建设,并且在整个业务中以非常可衡量的方式提供了非常明确的关闭日期。 所以,我不知道我们看到销售周期长度从三个月前开始增加。 我认为我们对整体情况有了更好的认识,尽管它与今年的金融模式有关。

当然,考虑到我们正在进行的交易规模,在下半年调整客户的预算,事情最终会倾向于更多的后端导向。 因此,总体而言,我们对这些较大交易的可预测性感到非常自信。 但总的来说 - 销售周期已经从我们一两年前的时间延长了,这就是我们所看到的模型的变化。

Melissa Franchi

Got it. And then Dylan thank you for the operating margin target in FY 2021. I know that you're not going to guide for the topline likely in that period, but I'm just curious how sensitive is that guidance to the topline such that if you are seeing better growth opportunities, is there a potential that you might want to kind of more reinvest in the business and deprioritize that leverage targets?

得到它了。 然后Dylan感谢您在2021财年的营业利润率目标。我知道您不会在那段时间内为会员提供指引,但我只是好奇这对于热线的指导是多么敏感,如果你 我们看到了更好的增长机会,您是否有可能希望对业务进行更多的再投资并优先考虑杠杆目标?


Yes. So, as we said in the past, we do think about certainly one of the components of our overall expenses that is mapped pretty closely to the success we are seeing and sort of the topline drivers as well as outcomes is our AE hiring, our salesforce hiring. But based on the things that we're putting in place this year to drive additional efficiencies, we feel good about that operating margin target depending -- even with various kind of topline scenarios.
Also although the ultimate hiring goals with the salesforce may move up or down depending on that success and productivity we're seeing and how well some of those initiatives are working, there are bunch of other things that are driving efficiencies in the business that lead us to be confident in that operating margin target even with the range of topline outcomes.
And that's everything from things like beginning to see those gross margins improve as we move through next year and as we complete the data center migration to continuing to drive natural business model leverage as we expect more of our customers are going to be -- you have a larger renewal base and expansion base relative to this year which are inherently more efficient sales, not to mention the sales productivity and beginning to move more of our future hiring in lower cost locations.
So, there are a number of things that we're doing across the business to drive efficiencies and I think we're going to achieve those goals even if the topline growth plays out as we're targeting.

是。所以,正如我们过去所说的那样,我们确实考虑的是我们整体费用的一个组成部分,它与我们所看到的成功非常接近,并且排名靠前的驱动因素和结果是我们的AE招聘,我们的销售人员招聘。但基于我们今年为提高效率而实施的目标,我们对运营利润率目标感到满意 - 即使有各种各样的背景情景。


从我们明年开始,随着我们完成数据中心迁移以继续推动自然业务模式的杠杆作用,我们期望更多的客户将成为现实,这就是从开始看到这些毛利润率提高的所有事情 - 你有相对于今年而言,更大的续订基础和扩张基础本身就是更有效的销售,更不用说销售生产力,并开始在低成本地区转移更多未来的招聘。


Melissa Franchi

Understood. Thank you very much.

了解。 非常感谢你。


Your next question comes from Rob Owens with KeyBanc Capital Markets. Your line is open.

您的下一个问题来自Rob Owens和KeyBanc Capital Markets。 你的线是开放的。

Rob Owens

Great. Thanks for taking my question. I guess if we focus on the velocity base sales and understand the economics of going up-market. But has there been a change either in market dynamics and competitive dynamic and just market maturation that would bifurcate the market and suggest Box moves up-market? Help me understand kind of the corollary in the other side of this just what's happening in that velocity base business? And they’re becoming more fungible or something of that nature? Thanks.

非常好。 谢谢你提出我的问题。 我想如果我们专注于速度基础销售并了解上市的经济性。 但市场动态和竞争动态以及市场成熟度是否会发生变化,这会使市场分化,并建议Box向市场推进? 请帮助我理解另一方面的一些必然结果,即速度基础业务中发生了什么? 而且它们变得更具可替代性或某种性质? 谢谢。

Aaron Levie

Yes. So actually I think we're still seeing really strong results in the velocity business. It's a really strong run rate business overall. And in fact, we're even starting to see higher average contract values within that segment with the addition of our add-on products.
So on a pretty regular basis, we're seeing now record kind of breaking deal sizes within our SMB and commercial segments, which really is evidenced that if you're a smaller investment banker or you're a law firm or a you're a professional services organization or marketing agency, you have the same level of security and governance and workflow needs as a large enterprise. And we might be even more complete solution for your entire enterprise. So that allows us to actually capture in some cases a higher price perceived in those organizations.
So I think we're very well positioned from a competitive standpoint in that kind of velocity business in the commercial segment. Of course, we want to layer on the enterprise business on top of that because of the strategic nature of Fortune 500 logos, and of course, the IT budgets that are out there and obviously the disruption that we can go drive within to legacy ECM space, but it is a balanced portfolio of our revenue mix everything from self-serve happening completely online with no touch all the way up to the world's largest enterprises. So I think we're going to continue to see that balance mix of revenue and drive on growth in those key segments.



因此,我认为我们在商业领域的竞争速度业务中处于竞争的立场。当然,由于财富500强标识的战略性质,当然还有那里的IT预算以及我们可以推进到传统ECM空间的中断,我们希望在此基础上对企业业务进行分层。 ,但它是我们收入组合的平衡组合,从自助服务发生到完全在线,一直到世界上最大的企业。因此,我认为我们将继续看到收入的平衡组合,并推动这些关键领域的增长。

Rob Owens

Aaron, can cloud is nothing new and nor is enterprise cloud content management. Are you surprised that just this point in the lifecycle of the company's ACV sales cycles is extending. I would think that they’d be somewhat coming down just because people understand the value proposition and understand what Box can add on top of that?

Aaron,云计算不是什么新鲜事,也不是企业云内容管理。 您是否感到惊讶的是,公司ACV销售周期的生命周期中的这一点正在扩展。 我认为他们会因为人们理解价值主张并了解Box可以添加什么而有所下降?

Aaron Levie

Yes, it's a really good question. We spent a lot of time thinking about this internally strategically. I think what's happening is if you look at the kind of first maybe decade plus of our growth it was really Box as a tool for secure file sharing and collaboration. It was very easy to adapt just by an IT department or some other department within the organization.
As we built out things like Box Governance, Box Relay obviously for workflow, Box Platform for developers to build applications on top of the platform, this has involved a broader set of constituents in the organization, which is fortunately driving more standardization around Box within an enterprise. But it comes certainly with some increased rigor on behalf of the customer and the stakeholders that have to be involved in the sales transaction.
So I think what's occurring is it's less about cloud as they kind of macro technology architecture and much more about Box as a platform for content management and security compliance, governance, developer buy in that goes on into one of the sales, especially if you think about a very large regulated bank or pharmaceutical company or government agency.
So the good news is operationally internally, we're very prepared for those types of deal cycles. But what it is having the impact on is extending those deal cycles. I think what we're certainly working on as well is driving again an ongoing very healthy run rate business of those kind of $100,000 plus deals that maybe won't be as susceptible to those cycle increases and really trying to drive a balanced mix of that.
But overall, I think as you see this mixed shift of revenue move more toward add-on products and customers buying the full suite of our capabilities that will become pretty normalized in terms of how you see the business grow.


当我们为Box Governance,Box Relay明确地为工作流构建时,Box平台让开发人员在平台上构建应用程序时,这涉及组织中更广泛的组成部分,幸运的是在Box内部推动了更多的标准化。企业。但是,代表客户和必须参与销售交易的利益相关者必须加强严谨性。




Rob Owens

Thank you.



Your next question comes from Brian Peterson with Raymond James. Your line is open.

你的下一个问题来自Brian Peterson和Raymond James。 你的线是开放的。


Hi, guys. Kevin here on for Brian. Thanks for taking my call. In regards to the new Relay offering, can you talk about how you see positioning that product with paid and free version? And I guess how do you see the driving customer economics versus some of your other product launches?

嗨,大家好。 凯文在这里为布莱恩。 谢谢接听我的电话。 关于新的Relay产品,您能否谈谈您如何看待该产品的付费和免费版本? 我想你是如何看待推动客户经济学与其他产品推出的?

Aaron Levie

Yes. So really it's going to be a fundamental to our continued evolution as a cloud content management platform. In the history of the company customers had to purchase other add-on separate products from other vendors to be able to drive workflow around their content within Box. And in many cases, we see a huge opportunity to make that a much simpler experience and one that is much more streamlined and much more kind of intuitive for our customers.
So we've seen a significant amount of demand for Relay the natively built product that we did just announced and will become generally available in June. So a pretty significant healthy pipeline is building, and this is again going to increase the retention rate of customers that's going to drive much stickier use cases within customers. And then overall, especially when bundled in with our add-on product suites drive up average contract value.
As Dylan mentioned, we are seeing a 4x greater average contract value of customers that have one or more add-on products from Box, which is obviously a pretty material difference in what customers are spending and buying from us when they do have these add-on products and we think Relay is going to be a significant contributor to that overall mix.





That's helpful. And then maybe just a point of clarification. I think your updated full year billings outlook would imply a growth rate that's below your updated revenue outlook. So I just wanted to come back to your comment about what's giving you confidence in the pipeline that growth for the business will reaccelerate going into fiscal 2021?

这很有帮助。 然后可能只是澄清一点。 我认为您更新的全年账单前景意味着增长率低于您更新的收入前景。 所以我只想回到你的评论,关于什么让你对2021财年的业务增长将会重新加速的管道充满信心?

Aaron Levie

Yes. So, you're right, in terms of the overall map, as we do expect billings growth and revenue growth to track more or less in line in the back half of the year. But due to some of, not just the kind of deal cycle length and time dynamics, but also some of the kind of one-time or the kind of items that have impacted billings in the first half of the year, that's what's causing that -- those kind of headwinds.
Which is why we'd also point to -- and I think we'll increasingly be pointing to RPO as a pretty good indicator of the underlying momentum in the business. But, overall, as we think about the confidence, as we think about the year as a whole, which will show up to a certain extent in the billings growth, it does relate to a lot of the same things that we've started to talk about in the past.
And on this call, specifically around everything from the traction that we're seeing in our cloud content management use cases and the economics and growth associated with, not just the specific add-on products, but the customers who are using those more broadly, now making up about 50% of our revenue and growing pretty steadily.
So those trends continue and we believe they will, especially as our product offering exhibit -- become a lot more compelling. We think with the introduction of Relay and Suites in the near term and then Shield later in the year, combined with a lot of the inputs and then the things we look at around sales capacity and pipeline coverage and things like that, are a lot of the underlying components that lead us to be feeling good about the year as a whole.

是。所以,就整体地图而言,你是对的,因为我们预计在今年下半年,账单增长和收入增长将或多或少地跟踪。但由于某些交易周期长度和时间动态,以及一些一次性或某种项目在上半年影响了账单,这正是由于 - - 那种逆风。

这也是我们也指出的原因 - 我认为我们越来越多地将RPO视为业务潜在动力的一个很好的指标。但是,总的来说,当我们考虑信心时,正如我们考虑整个年度,这将在一定程度上显示在账单增长中,它确实与我们已经开始的很多相同的事情有关。谈谈过去。




It's very helpful. Thanks guys.

这非常有帮助。 多谢你们。


Your next question comes from Mark Murphy with JPMorgan. Your line is open.

你的下一个问题来自马克墨菲和摩根大通。 你的线是开放的。


Hi, good afternoon. This is Matt Coss on behalf of Mark Murphy. You mentioned, you saw some improvement in certain regions in EMEA. What were the regions that did improve? And what was the improvement that you are able to observe? And then, in the regions that are still transitioning, what do you expect to see from those as the year progresses?

嗨,下午好。 这是Matt Coss代表Mark Murphy。 你提到过,你看到EMEA某些地区有所改善。 哪些地区有所改善? 您能够观察到的改进是什么? 然后,在仍在转型的地区,随着时间的推移,您期望从这些地区看到什么?

Aaron Levie

Sure. So the most notable reason where we saw a big improvement over prior quarters is in the U.K. and Ireland, which is our largest region of EMEA, having a very strong outcome and better than planned. And that was where we closed one of our $1 million deals in the quarter as well. So that would be probably the main highlight that I'd call out in terms of materiality.
Still seeing, kind of, a lower contribution from some of the areas where we've been rebuilding the team and upholding leadership like Germany, for example, has not been contributing materially to the business and we've been building out the sales capacity and some of the pipeline there. And hopefully see that start to contribute more materially, as we move through the year. But those are probably the two reasons I'd call out, in terms of both positive and still building.

当然。 因此,我们看到比前几个季度有了很大改善的最显着原因是英国和爱尔兰,这是我们最大的欧洲,中东和非洲地区,结果非常强劲,优于计划。 这就是我们在本季度完成100万美元交易之一的地方。 所以这可能是我在重要性方面提出的主要亮点。

例如,我们一直在重建团队和维护像德国这样的领导地位的一些领域的贡献较低,但这并没有为业务做出重大贡献,我们一直在建立销售能力和 那里有一些管道。 随着我们度过这一年,希望看到开始做出更实质性的贡献。 但这些可能是我所说的两个原因,无论是积极的还是仍在建设中。


Okay. And sorry if I missed this, did you mention the number of registered and paying users?

好的。 对不起,如果我错过了这个,您是否提到注册用户和付费用户的数量?

Aaron Levie

We did. We have now in terms of total registered users, just shy of 66 million, so 65.9 million. And in terms of overall paying seats 12.2 million.

我们做到了。 我们现在的注册用户总数仅为6600万,而6590万。 而在整体支付席位方面为1220万。


Thank you.



Your next question comes from Chad Bennett with Craig-Hallum. Your line is open.


Chad Bennett

Great. Thanks for taking my questions. I guess, the large deals that slipped from last quarter, did we recoup any of those deals in a large deal metrics that you cited?

非常好。 谢谢你回答我的问题。 我猜,从上个季度开始的大笔交易,我们是否以您引用的大量指标收回了这些交易?

Aaron Levie

Yes. We did close a few of those within the quarter and a majority are still in the pipeline throughout this year. So still in, kind of, control of all those deals.

是。 我们在本季度内确实关闭了其中的一些,并且大多数仍然在今年的管道中。 所有这些交易的控制权仍然存在。

Chad Bennett

Okay. And then, on a net new basis, do you think -- and I guess even more broadly, the net new customer wins, do you believe you've lost share over the last 12 to 18 months in the next generation cloud content management space?

好的。 然后,在新的基础上,你认为 - 我想更广泛地说,净新客户赢了,你相信你在下一代云内容管理领域的过去12到18个月里失去了份额吗??

Aaron Levie

Yes. Sorry, one more time? Sorry?

是。 对不起,再来一次? 抱歉?

Chad Bennett

Do you believe you've -- either your win rates on a net new basis have went down.

你相信你 - 你的净赢额是否已经下降了。

Aaron Levie



Chad Bennett

Or overall you've lost share in your space?


Aaron Levie

No. No. I would actually say the -- from a cloud content management standpoint, we are still in pretty clear leading position as the only cloud-native platform that customers can move to. So when we look at most of our competition, it's primarily legacy ECM vendors like OpenText or Documentum ,or products that are having to be positioned through a kind of on-prem to cloud transition like SharePoint.
And overall, what we're seeing from customers is that, the functionality, the user experience, the lack of internal or external collaboration, the lack of developer experiences, or integration with other best-of-breed tools, all of those kind of deficits are causing customers to really rethink their content management environment, which is actually driving a lot of demand for Box overall.

没有。我实际上会说 - 从云内容管理的角度来看,作为客户可以迁移的唯一云原生平台,我们仍处于非常明确的领先地位。 因此,当我们查看大部分竞争对手时,它主要是传统的ECM供应商,如OpenText或Documentum,或者必须通过像SharePoint这样的本地到云转换定位的产品。

总的来说,我们从客户那里看到的是,功能,用户体验,缺乏内部或外部协作,缺乏开发人员体验,或与其他最佳工具集成,所有这些 赤字导致客户真正重新考虑他们的内容管理环境,这实际上推动了Box整体的大量需求。


Yes. And as it relates to the win rate, specifically, we have seen stability in many cases, especially, per add-on deals actually slight improvements in the win rates over the past several quarters. And so, absent -- and you can leave out that in a couple of ways. There's kind of what amount of the pipeline do we ultimately close, as new bookings relative to what's entering the quarter?
And then what percentage of the pipeline is ultimately closed, either when and what comes in, in the latter categories how we typically think about and describe win rates. And that, as I mentioned has been slightly improving and is significantly better in deals that had at least one of our add-on products attached, as it relates to what we close out of the entering pipeline coverage that is similarly been pretty stable and strong as well, absent Q4 where we had a higher volume as we've discussed of large deals pushing out of the quarter that led that metric to go down.

是。 而且,由于它与赢率有关,具体而言,我们在很多情况下都看到了稳定性,特别是,每增加一次交易,过去几个季度的赢率实际上略有改善。 所以,缺席 - 你可以通过几种方式忽略它。 我们最终关闭的管道数量有多少,因为新预订相对于进入该季度的情况而言?

然后,最后关闭的管道的百分比,无论是何时和何时进入,后者类别我们通常如何思考和描述赢率。 而且,正如我所提到的那样,在我们至少有一个附加产品附加的交易方面略有改进并且明显更好,因为它与我们从进入的管道覆盖范围中关闭的内容同样相当稳定和强大 同样,由于我们已经讨论了推动该季度导致该指标下降的大型交易,因此缺少第四季度我们的交易量较高。

Chad Bennett

Okay. One last one real quick, if I may. I think it should be straightforward. So, if you are moving up in terms of enterprise selling in Q from a sales standpoint and then also bundling in more suite-based selling or solution selling and you're going to see the benefits of this in the second half, we should expect net expansion and retention rates to accelerate?

好的。 如果可能的话,最后一个真快。 我认为这应该是直截了当的。 所以,如果你从销售的角度来看Q的企业销售,然后捆绑更多基于套件的销售或解决方案销售,你会看到下半年的好处,我们应该期待 净扩张和保留率加速?


Well, I'll tell you a couple of things there is we would expect seeing one of the things that has been contributing positively the net expansion rate is -- and that retention rate is the cross sells of add-on products which is offset some of the kind of counter pressures of things like the customer base maturing and such.
However, this year as we talked about, we are going to see some pressure because of that one customer who reduced its use cases and footprint with us in the fourth -- first quarter. So that's going to show up and we'll call out the impact as we move through the year.
So, I think ultimately we could see and think that we based on the product portfolio that we increasingly have, especially as we think about toward the end of the year and heading into next year some upside metric. But because of the offsetting pressure from that one large event about $8 million, that's going to make it pretty challenging compared to this year.

好吧,我会告诉你一些事情,我们期望看到其中一个对净扩张率产生积极贡献的事情是 - 并且保留率是附加产品的交叉销售,这抵消了一些 对客户群日趋成熟等问题的反压力。

然而,就在我们谈到的今年,我们将看到一些压力,因为那个客户在第四季度减少了我们的用例和足迹。 所以这将会出现,我们将在年度过程中提出影响。

因此,我认为最终我们可以看到并认为我们基于我们越来越多的产品组合,特别是在我们考虑到年底并进入明年的一些上行指标时。 但由于这一大型事件的抵消压力大约为800万美元,与今年相比,这将使其变得非常具有挑战性。

Chad Bennett

Great. Thanks for taking my questions.

非常好。 谢谢你回答我的问题。


Your next question comes from Michael Turrin with Deutsche Bank. Your line is open.

您的下一个问题来自德意志银行的Michael Turrin。 你的线是开放的。

Michael Turrin

Hey, good afternoon and thanks. Just one for me. You mentioned some of the revenue headwinds heading into this year on the Q4 call. But revenue sequentially down is not something we're used to seeing giving you have a 97% recurring revenue model. You also saw an uptick in $1 million deals during the quarter.
So, was hoping we could talk more around given what appears to be a conservative backdrop and some of those incremental deals showing up in some form, what are some of the offsets that are bringing the full year guide lower today versus what you are seeing last quarter when you set that initial guide?

嘿,下午好,谢谢。 对我来说只有一个。 您在第四季度电话会议上提到了今年的收入逆风。 但是收入顺序下降并不是我们习惯看到给你97%的经常性收入模式。 在本季度,您还看到了100万美元的交易增长。

因此,希望我们可以更多地谈论看似保守的背景和一些以某种形式出现的增量交易,有哪些补偿使今年的全年指南低于你最后看到的 你设置初始指南的那一刻?


Sure. So, let's say, first, specifically, as it relates to sequential revenue outcome, a couple of things just to keep in mind or maybe three things. First of all, the sequential increase or decrease or change is a function of the bookings that we closed in Q4 whereas as mentioned that outcome was certainly worse than our expectations and our typical Q4 performance. We also had at the very beginning of this quarter that customer downgrade which had a couple of million dollar headwind. And then finally just from purely optically there's five -- sorry -- three fewer days in Q1 versus Q4 which leads to roughly $5 million headwind, so that sort of the sequential setup there.
And as it relates to the overall kind of guidance and what has changed, a couple of things and we've probably said this, but just sort of clarify we did get off to a bit of a slower start in Q1 than we would have hoped as billings landed at the low end of the range we'd expected due to the $100,000 plus deal counts coming in a bit below our expectations. And we had seen a bit more pronounced lengthening of those larger deal cycles versus what we'd expected a few months ago are really the two main things that what's changed over the past few months.

当然。所以,首先,特别是,因为它与顺序收入结果有关,所以要记住一些事情,或者三件事情。首先,顺序增加或减少或变化是我们在第四季度结束的预订的函数,而如前所述,结果肯定比我们的预期和我们典型的Q4表现差。在本季度初,我们还有客户降级,其中有数百万美元的逆风。然后最后只是纯光学上有五个 - 对不起 - 第一季度与第四季度相比减少了三天,导致逆风大约500万美元,因此在那里进行顺序设置。


Michael Turrin

Okay. Helpful summary, Dylan. Appreciate the color there. Thanks.

好的。 有用的总结,迪伦。 欣赏那里的颜色。 谢谢。


And your next question comes from Erik Suppiger with JMP Securities. Your line is open.

你的下一个问题来自Erik Suppiger与JMP Securities。 你的线是开放的。

Erik Suppiger

Yeah. Thanks for taking the question. Just on the sales organization, has there been any change in terms of sales turnover?
And then secondly, can you give us a sense for the tenure of your average sales people, how much of your sales organization has been with the company for a year or more?

是啊。 谢谢你提出这个问题。 就销售组织而言,销售额是否有任何变化?


Aaron Levie

Yeah. So, we haven't seen a significant change in terms of sales force turnover. So, as mentioned, especially now as we have a much better sense of what it takes to be successful selling these more strategic solutions sales, we have increased our focus on performance management which has a bit of an impact, but not material as it relates to the overall number.
And then as it relates to the overall dynamic in terms of tenure is, what I'd say is entering this year we had about two-thirds of our field sellers fully ramped entering the year, which is both about the same as last year and also roughly correlates to how many folks have been around for a year as that's about how long it takes to achieve fully ramped quotas. So that's two-thirds of our sales force heading into the year is in that category.

是啊。 因此,我们没有看到销售人员流动率方面的重大变化。 因此,如上所述,特别是现在我们已经更好地了解了如何成功销售这些更具战略性的解决方案销售,我们更加关注绩效管理,这会产生一些影响,但不是因为它涉及到 总数。

然后因为它与使用权方面的整体动态有关,我说今年进入的时候我们有大约三分之二的现场卖家进入全年,这与去年大致相同, 也大致与一年中有多少人在一起,因为这是关于实现完全增加的配额需要多长时间。 因此,我们销售额中三分之二的销售人员属于该类别。

Erik Suppiger

All right. Very good. Thank you.

行。 很好。 谢谢。


There are no further questions at this time. Thank you very much for joining us for the call today. You may now disconnect.

目前没有其他问题。 非常感谢您今天加入我们的电话会议。 您现在可以断开连接。


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