Q3 earnings beat lifts cloud storage firm BOX 9% pre-market
14:03, 1 December 2021
Box stock rose on Wednesday after the data storage and content management firm posted preliminary fiscal third-quarter earnings that beat estimates.
Founded in 2005, Box is a cloud content management platform and has organisations such as AstraZeneca and Morgan Stanley as clients.
For the fiscal third quarter ended 31 October, the net loss widened to $13.9m (£10.4m) from a loss of $5.3m a year earlier. Revenue was up 14% at $224m from $196m in the year-ago period.
Stock shoots up
Adjusted earnings of 22 cents per share beat analyst estimates of 21 cents a share on revenue of $218.6m, according to figures widely available on financial news sites.
In pre-market trading on the NYSE, the stock was up 9% at $25.55.
“Our strong third-quarter results show the continued momentum of our long-term growth strategy, as more customers are turning to the Box content cloud to deliver secure content management and collaboration built for the new way of working,” Box CEO Aaron Levie said in a press release.
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Net retention up
Box said remaining performance obligations – uncompleted work contracts – rose 25% to $948.1m, while its net retention rate was up to 109% from 103% from a year ago.
Looking ahead, the company now sees revenue for the fiscal year ending 31 January in the range of $868m to $870m. The GAAP basic and diluted net loss per share is expected to be 35 cents to 34 cents.
The company expects fiscal fourth-quarter revenue between $227m to $229m.
Earlier this month, Box upped the aggregate amount of its share buyback programs to $700m, and as of 29 November it had approximately $260m of remaining buyback capacity.