Description

Box’s $1.6 Billion Backlog Signal — Is The Market Missing Its AI Demand Story?

Box, Inc. reported a robust start to its fiscal 2027, highlighted by its first double-digit year-over-year revenue growth in over three years. The company generated $306 million in revenue during the first quarter, reflecting an 11% increase year-over-year (10% in constant currency). Billings rose by 5% year-over-year (13% in constant currency), while operating margins expanded to 28%, surpassing prior guidance. This performance was driven primarily by strong customer adoption of Box’s Enterprise Advanced platform, which integrates intelligent workflow capabilities and Box’s AI-powered solutions. Customers paying at least $100,000 annually increased 11% year-over-year, and suite customers represented 67% of total revenue, up from 61% a year earlier. The company’s net retention rate improved to 105%, exceeding guidance and the prior year’s 102%, with churn remaining stable at 3%. Remaining performance obligations stood at $1.6 billion, a 12% increase.