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Box Earnings Top Expectations in Latest Quarter

The company said it benefited from its new products Box Relay and Box Shield.
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Shares of Box  (BOX) - Get Box, Inc. Class A Report rose in after-hours trading Wednesday, after the cloud storage company reported stronger-than-expected earnings for the fourth quarter and predicted first-quarter revenue above analysts’ estimates.

Revenue totaled $183.6 million in the fourth quarter of fiscal 2020, ended Jan. 31, up 12% from a year earlier and above analysts’ estimate of $181.6 million, according to FactSet.

Box’s GAAP loss per share was 20 cents in the fourth quarter, compared to analysts’ prediction of 22 cents. And it posted adjusted profit of 7 cents a share, topping analysts’ projection of 4 cents.

The company anticipates revenue will total $183 million to $184 million in the first quarter, beating analysts' forecast of $181.8 million, according to Reuters.

“In fiscal 2020, we launched two major new products, Box Relay and Box Shield, building out our multi-product platform and solidifying our leadership in the cloud content management market,” Aaron Levie, CEO of Box, said in a statement.

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“With these added capabilities, we are seeing more and more of our customers adopt the full power of Box through our Enterprise Suite offering.”

Box competes with Microsoft's  (MSFT) - Get Microsoft Corporation Report OneDrive and Alphabet's  (GOOGL) - Get Alphabet Inc. Class A Report Drive cloud systems.

After Box’ last earnings report, Morningstar analyst John Barrett said its shares are overvalued. “We remain concerned with the relatively low paid user conversion growth longer-term … and would like to see some additional quarters of progression in sales efforts before we have confidence in the business,” he wrote in a November report.

Barrett put fair value for the stock at $11.

It traded at $16.30 after hours, up 8.81%. The stock eased 0.4% during regular trading Wednesday.

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