Redeemable Convertible Preferred Stock and Stockholders' Deficit

6 Months Ended

Jul. 31, 2024

Stockholders' Equity Note [Abstract]

Redeemable Convertible Preferred Stock and Stockholders' Deficit

Note 7. Redeemable Convertible Preferred Stock and Stockholders’ Deficit

Series A Convertible Preferred Stock

On April 7, 2021, we entered into an investment agreement with a group of investors led by KKR & Co. Inc. (collectively "KKR") relating to the issuance and sale of 500,000 shares of our Series A Convertible Preferred Stock, par value $0.0001 per share, for an aggregate purchase price of $500 million, or $1,000 per share.

There have been no changes to the terms and conditions of the Series A Preferred Stock for the six months ended July 31, 2024 from those disclosed in Item 8. Financial Statements and Supplementary Data in our Form 10-K for the year ended January 31, 2024.

During the six months ended July 31, 2024, we paid cash dividends to our Series A Preferred Stockholders in the amount of $7.5 million and as of July 31, 2024, we had accrued dividends of $1.3 million on the Series A Preferred Stock. Accrued dividends are recorded against additional paid-in capital due to Box being in an accumulated deficit position.

Share Repurchase Plan

Our Board of Directors has authorized a share repurchase plan to opportunistically repurchase shares of our outstanding Class A common stock in open market transactions. We periodically enter into pre-set trading plans adopted in accordance with Rule 10b5-1 to effect repurchases under our share repurchase plan.

During the three months ended July 31, 2024, we repurchased 3.9 million shares at a weighted average price of $26.25 per share for a total amount of $101.9 million. During the six months ended July 31, 2024, we repurchased 5.3 million shares at a weighted average price of $26.48 per share for a total amount of $139.1 million. As of July 31, 2024, $24.6 million remained available for additional repurchases.

On August 25, 2024, our Board of Directors authorized an expansion of the share repurchase plan. Under this expansion, an additional $100 million of our Class A common stock may be repurchased in open market transactions through August 25, 2025.