File-sharing company Box Inc. reported its first $1 billion revenue run rate in its fiscal third-quarter earnings today amid record operating profitability.

For its third quarter that ended Oct. 31, Box reported a profit before costs such as stock compensation of 31 cents per share, up from 22 cents per share in the same quarter of fiscal 2022. Revenue rose 12% year-over-year, to $250 million. The figures were roughly in line with analysts’ expectations of 30 cents and $251.67 million.

As of the end of October, remaining performance obligations sat at $1.056 billion, up 11% year-over-year, while billings in the quarter totaled $258.2 million, up 12%. Gross profit was $185.5 million or 74.2% and, on an adjusted basis, $191.2 million or 76.5% of revenue. Net cash provided by activities in the quarter was $69.7 million, up from $31.2 million this time last year and free cash flow in the quarter was $55 million.

Highlights in the quarter included new and expanded business with organizations such as Eurostar International Ltd., Garmin Ltd., McLarens Inc., Mariner Wealth Advisors, Regions Financial Corp., Warner Music Group Corp. and Wasserman Media Group. Product releases on Oct. 6 included a new version of Box Notes, the beta availability of Box Canvas and a new release of Content Insights.

“We delivered strong third-quarter results with revenue growth of 12% year-over-year and record operating margins,” Aaron Levie, co-founder and chief executive officer of Box, said in a statement. “As companies prioritize strategic IT initiatives that allow them to efficiently lower IT expenses, the Box Content Cloud enables enterprises to streamline their businesses, drive up productivity, reduce risk, and lower costs.”

For its outlook, Box expects adjusted earnings per share of 34 to 35 cents on revenue of $255 million to $257 million in its fourth quarter. Analysts had expected earnings per share of 30 cents and revenue of $259.3 million. For the full fiscal 2023 year, Box expected adjusted earnings per share of $1.16 to $1.17 on revenue of $990 million to $992 million.

Box also noted in its earnings report that its board had authorized an expansion of its stock repurchase program by $150 million.

Although there was a small miss on revenue, both in the third quarter and in the fourth-quarter outlook, that was balanced by better-than-expected earnings per share for both. The lack of surprises was reflected in quiet after-hours trading, with Box shares down less than a point after rising briefly by a similar amount.

Photo: Box