Tuesday, August 30, 2016

Box beats earnings expectations

Box reported its second quarter fiscal 2017 earnings after the bell on Wednesday. The company beat estimates, posting an adjusted loss of 14 cents, compared to the 19 cents expected by analysts. They also surpassed revenue predictions, reporting $95.7 million instead of $94.65 million. Shares ticked up about 5% in initial after-hours trading, and then fell flat.


“Our strong second quarter results, with revenue growth of 30 percent and billings growth of 34 percent year-over-year, reflect our clear differentiation as the leading enterprise content platform,” said Aaron Levie, co-founder and CEO of Box, in a statement. “Our excellent sales execution and traction with new products drove deals with 4,000 new customers and expanded deployments with leaders such as Pfizer, Electronic Arts and Uber.”


Box raised its full-year guidance, expecting revenue to be between $394 million and $396 million. Their adjusted earnings per share is forecast to be at a loss, ranging between 67 cents and 69 cents.


The company announced over 4,000 new paying customers, saying it grew its total customer base to 66,000 businesses.


Some of the company’s more recent initiatives include Box Shuttle, which is about migrating existing files into the cloud. They also touted their Box Partner Platform Program for enterprise apps.


But it is a competitive landscape for cloud storage, with Dropbox, Egnyte and others competing to store documents online. Box has tried to carve out an edge in the enterprise space, securing many Fortune 500 companies as clients.





Shares were up almost 18% in the past month, but still trade slightly beneath the company’s IPO price of $14 in 2015. Dropbox, still a private company, has also seen its share price decline.


Investors have been critical of Box for spending too much on sales and marketing relative to its customer acquisition, but the company has been working to bring down those ratios.


The company has a market cap of about $1.75 billion.


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