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Cloud storage company Box Inc reported better than expected third quarter earnings with record revenue on Wednesday after the close. $BOX guided higher for the following quarters.

Box Cloud

Box Inc NYSE: BOX  Reported Earnings After Close Wednesday

$(0.06) Beat $(0.07) EPS And $3.39 Beat $3.37 billion Forecast in Revenue. 

Earnings

Box Inc reported third quarter earnings with record revenue of $155.9 million, with an adjusted loss of 6 cents a share. The numbers were ahead of analysts expectations of a loss of 7 cents on revenue of $154.6 million.

GAAP net loss for the quarter narrowed to 28 cents per share from 32 cents loss per share reported in the prior-year quarter.

Box Inc NYSE: BOX 

Market Reaction - After hours $17.98 ▼ 0.19 (-1.05%)

“Our solution selling strategy continues to gain momentum with strong attach rates for add-on products and large deal growth in the third quarter. With more than 90,000 customers, including BBVA Compass, National Bank of Canada, and Shiseido Company, Box continues to expand its role as a strategic technology partner to power digital transformation for enterprises,” said CEO Aaron Levie.

Highlights

  • Box grew its paying customer base to 90,000 from 87,000 
  • The 21% revenue growth in the quarter was driven by customer retention and customer expansion.

BOX Earnings Q3 18

Outlook

  • For Q4 Box expects GAAP loss per share to be in the range of $0.21 to $0.20 and non-GAAP loss per share to be in the range of $0.02 to $0.03. Revenue is expected to be in the range of $163.5 million to $164.5 million.
  • Box raised its FY19 revenue outlook to a range of $608.2 million to $609.2 million compared to the prior estimate of $606 million to $608 million. Non-GAAP loss per share is expected to be $0.16 to $0.15 versus the prior forecast of $0.18 to $0.16.
  • Free cash flow in Q3 was negative $4.1 million, compared to positive $6.3 million in the year-ago quarter. This result was driven by the timing of cash outflows paid in Q3 2019 that were originally anticipated to be paid in Q4 2019. Box expects to achieve positive free cash flow for the fourth quarter and FY19.

“Our solution selling strategy continues to gain momentum with strong attach rates for add-on products and large deal growth in the third quarter. With more than 90,000 customers, including BBVA Compass, National Bank of Canada, and Shiseido Company, Box continues to expand its role as a strategic technology partner to power digital transformation for enterprises,” said CEO Aaron Levie.

Sourcr: Box, AlphaStreet

From The TradersCommunity Research Desk

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