Wall Street analysts were bullish on the company following the release. Here's what Wall Street is saying:
William Blair analysts maintained their outperform rating, citing "a strong pipeline of six-figure deals going into the third quarter."
Raymond James analyst Brian Peterson also has an outperform rating and a $24 price target on the company.
He noted that the company's adjusted 15-percentage-point wider operating margin year over year "isn't coming at the detriment of growth, as revenue/billings topped expectations benefiting from a 10% improvement in sales productivity."
Berenberg's buy rating and $25 price target are based on the company's ability to deliver revenue growth while also improving profitability. "We believe this dynamic warrants a higher multiple to be placed on Box," wrote analyst Brett Knoblauch.
Knoblauch also says the coronavirus pandemic has acted as both a headwind and tailwind for Box as smaller and medium-sized clients drop off but larger companies increase demand.
Box reported a GAAP net loss of a nickel a share, narrowed from 25 cents in the year-earlier quarter. Shares outstanding rose 5.2% to 154.7 million.
Adjusted profit of 18 cents a share compared with break-even a year earlier. Revenue jumped 11% year over year to $192.3 million.
Analysts surveyed by FactSet were expecting the company to report adjusted earnings of 12 cents a share on revenue of $189.6 million.
The company also raised its full year revenue forecast to as much as $770 million, with third-quarter revenue expected to range $193 million to $195 million.
Analysts are expecting full year revenue of $765 million with third-quarter revenue of $199 million.
Box shares at last check were up 5.1% to $20.28.