Box (BOX) Reports Breakeven Q2 Earnings, Beats On Revenues

Box, Inc. (NYSE:BOX) reported breakeven fiscal second-quarter 2020 earnings per share versus the Zacks Consensus Estimate of a loss of 1 cent.

Total revenues came in at $172.5 million, surpassing the consensus mark of $169 million. Moreover, the top line increased 16% year over year and was above the guided range of $169-$170 million.

Box is currently working on enriching cloud content management and AI platforms. It has made some notable partnerships with Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT).

The company’s rich technology partner ecosystem will continue to be a strong driving force behind growth.

Box, Inc. Price, Consensus and EPS Surprise

Let’s delve deeper into the numbers.

Billings and Deferred Revenues

Billings were $172.9 million, up 6% year over year. Deferred revenues were $330.8 million, up 10% from the year-ago quarter.

Operating Results

Box’s operating expenses (general & administrative, sales & marketing, as well as research & development) of $154.9 million increased 8.5% year over year.

On a non-GAAP basis, the company recorded non-operating income of $0.5 million versus an operating loss of $6.5 million a year ago. Operating margin was 0% versus (4%) in the year-ago quarter.

Balance Sheet and Cash Flow

At the end of the quarter, cash and cash equivalents, and accounts receivables balance were $201.5 million and $117.9 million compared with $231.4 million and $93.7 million, respectively, at the end of the fiscal first quarter.

Cash provided by operations was ($4.7) million in the fiscal second quarter.

Guidance

For the third quarter of fiscal 2020, Box expects revenues between $174 million and $175 million. The Zacks Consensus Estimate for the same is pegged at $174.6million. On a non-GAAP basis, the company projects the bottom line in the range of (1) cent to breakeven. The corresponding Zacks Consensus Estimate is pegged at a loss of 1 cent per share. GAAP loss per share is expected within 28-27 cents.

For fiscal 2020, Box expects revenues between $690 million and $692 million. The Zacks Consensus Estimate for the metric is pegged at $689.65 million. On a non-GAAP basis, it projects earnings per share in the range of breakeven to 2 cents. The consensus mark for the same is pegged at the lower end of the guided range. GAAP loss per share is expected within $1.03-$1.01.

Zacks Rank and Stocks to Consider

Currently, Box has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Alphabet Inc. (NASDAQ:GOOGL) , Itron, Inc. (NASDAQ:ITRI) and Teradyne, Inc. (NASDAQ:TER) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for Alphabet, Itron and Teradyne is currently projected at 17.5%, 25% and 11.4%, respectively.

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