Tallahassee Journal

Box results: Loss of 28 cents per share, vs expected loss of 31 cents

Box results: Loss of 28 cents per share, vs expected loss of 31 cents

Box shares surged on Wednesday after it reported a narrower-than-expected quarterly loss as subscriptions and billings both rose. The cloud computing company’s stock jumped 9 percent in extended trading after it posted an adjusted fiscal first-quarter loss of 28 cents per share on $65.6 million in revenue. Analysts expected Box to report a loss of 31 cents per share and deliver $64 million in revenue for the period, which ended April 30, according to a consensus estimate from Thomson Reuters.Box co-founder and CEO Aaron Levie speaks during the BoxWorks "How Tomorrow Works" event in San Francisco on Sept. 3, 2014.

Box also set sales guidance of $69 million to $70 million for its second quarter. That tops the $67 million in a consensus estimate from Thomson Reuters. “As evident from our healthy customer adoption and strong billings growth of 58 percent year over year, Box has a significant opportunity to help organizations in every industry navigate this shift,” the company’s CEO, Aaron Levie, said in a release, referring to a move to digital storage platforms.

Investors have watched for money-losing Box to expand revenue and cut losses in the crowded cloud computing space. Its revenue increased 45 percent from the prior-year period, while its loss shrank from $2.32 per share. In the company’s conference call, CFO Dylan Smith said Box was on a “steady path” to profitability. Billings in the quarter jumped to $69.8 million, a nearly 60 percent increase from a year earlier. Smith noted the company will see “variability” in billings.

Box topped 37 million registered users, as paying customers surged 70 percent. Despite the rise, only 10 percent of users pay for Box storage. “As evident from our healthy customer adoption and strong billings growth of 58 percent year over year, Box has a significant opportunity to help organizations in every industry navigate this shift,” the company’s CEO, Aaron Levie, said in a release, referring to a move to digital storage platforms.

Investors have watched for money-losing Box to expand revenue and cut losses in the crowded cloud computing space. Its revenue increased 45 percent from the prior-year period, while its loss shrank from $2.32 per share. In the company’s conference call, CFO Dylan Smith said Box was on a “steady path” to profitability. Billings in the quarter jumped to $69.8 million, a nearly 60 percent increase from a year earlier. Smith noted the company will see “variability” in billings. Box topped 37 million registered users, as paying customers surged 70 percent. Despite the rise, only 10 percent of users pay for Box storage.