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 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.

“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 Report OneDrive and Alphabet's  (GOOGL) - Get 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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