Box, Inc. (NYSE:BOX) Q1 2016 Earnings Conference Call - Final Transcript

Jun 10, 2015 • 05:00 pm ET


Box, Inc. (NYSE:BOX) Q1 2016 Earnings Conference Call - Final Transcript


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Mike McAndrew

investment and significant restructuring expense.

We're confident that we can establish an appropriate level of objects below our fiscal 2015 levels without reducing the momentum of our transformation and we're committed to accomplishing that in fiscal 2016.

As a result, our guidance that Tim provided, reflects operating margin expansion in both products and services. We're well positioned to demonstrate the profitability leveraging our business model as we grow our revenues. As I've stated previously, I've placed a significant amount of attention on the process of managing our investments into a normalized run rate so that operating margin expansion and increases in cash flow will return to the business similar to our revenue growth.

I've also said that we recognize that this transformation is not a linear path. As evidenced by the modest year-over-year revenue decline reflected in our guidance but 1Q16. We will continue to encounter challenges in our markets and operations that may have short term impact on our plans for profitable growth. However, I continue to believe in our strategy and the ability of our team to execute.

Our annual guidance demonstrate the leverage in our model where an anticipated 1% increase in revenues is expected to result in a 14% increase in operating profits.

At this time, I'd like to open up the line for questions.