Box Tops Estimates on Security Product Demand

Box, the cloud-based content management platform, reported stronger-than-estimated revenue and adjusted profit.
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Box,  (BOX) - Get Report the cloud-based content management platform, reported a narrower fiscal-fourth-quarter loss on 8.3% higher revenue after the bell Tuesday.

Box's revenue and earnings excluding special items beat Wall Street's estimates.

For the quarter ended Jan. 31, the Redwood City, Calif., company posted a loss of 3 cents a share, vs. a loss of  20 cents a share in the year-earlier quarter. 

The company reported adjusted earnings of 22 cents a share compared with 7 cents a year earlier.

Shares outstanding rose 6.1% to 159.2 million.

Revenue reached $198.9 million from $183.6 million.

A survey of analysts by FactSet produced consensus estimates of a GAAP net loss of 8 cents a share, or adjusted earnings of 17 cents a share, on revenue of $196.6 million.

At last check Box shares were trading up 2.1% at $19.15. They closed the regular Tuesday trading session down 1.2% at $18.75. The stock is about flat with its level of late last May.

Gross-profit margin in the quarter widened to 71% from 69%.

"Growing demand for products like Shield and Relay continues to accelerate adoption of our bundled Suite offerings," Aaron Levie, co-founder and chief executive of Box, said in a statement. Box Shield provides protection against data leakage. Box Relay is a workflow platform. 

At the beginning of last month, Box said it had definitively agreed to acquire SignRequest, the Amsterdam cloud-based electronic signature company, for $55 million.

The deal will ensure that Box customers can securely manage and govern their agreements while the documents are stored in Box's content cloud, the company said.

The deal will expand the product portfolio, creating Box Sign, an "e-signature capability natively embedded in a cloud content management platform built for the enterprise," Levie said.

For the fiscal 2022 first quarter, Box estimates a loss of 5 cents to 6 cents a share on revenue ranging $200 million to $201 million. Excluding special items, it expects to earn 16 cents to 17 cents.

FactSet’s survey is calling for a fiscal Q1 net loss of 8 cents, or adjusted profit of 16 cents, on revenue of $199.1 million.

For all of fiscal 2022, Box pegs its net loss at 20 cents to 25 cents a share on revenue of $840 million to $848 million. Adjusted earnings should range 76 cents to 81 cents a share.

FactSet’s survey estimates a net loss of 21 cents a share, or adjusted earnings of 76 cents, on revenue of $839.8 million.