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Box shares plunge 7% after billings disappoint in the first quarter

Published 06/01/2016, 07:36 PM
Updated 06/01/2016, 07:39 PM
Box shares fell sharply on Wed. after the company failed to meet analysts' billing forecasts in 1Q
BOX
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Investing.com -- Shares in Box Inc (NYSE:BOX) tumbled nearly 8% in after-hours trading after the California-based online file sharing and content management service for businesses failed to meet analysts' forecasts with its quarterly billings for a three-month period ending in late-April.

During Box's First Quarter of Fiscal Year 2017, the Redwood City, California company saw its revenues surge 37% to $90.2 million, after expanding its customer base to prominent businesses such as AirBNB, Brooks Brothers and The Whirpool Corporation among others. Still, Box reported a net loss of $38.6 million or 0.31 per share as company billings of $75.9 million came in below analysts' forecasts of $84.1 million. Box also posted adjusted per share earnings of Minus-0.18, excluding one-time items. Analysts expected to see revenues of $89 million on adjusted per share earnings of Minus-0.24.

Box blamed increased seasonality and an added focus on annual payment durations from multi-year prepayments for the subdued billings on the period.

"In the first quarter, we achieved a marked improvement in cash flow from operations of negative $4.2 million and, excluding a payment related to a litigation settlement, would have achieved near breakeven cash flow from operations of negative $500,000,” said Dylan Smith, co-founder and CFO of Box. "We are confident in our growth opportunity, driven by our product differentiation and expanding market, and we remain committed to achieving positive free cash flow in the fourth quarter of this fiscal year."

Moving forward, Box expects to finish with full-year revenue of $391 million to $395 million on adjusted losses of 0.75-0.78 per share. In March, the company projected annual revenue of $390 to $394 million on adjusted losses of 0.83-0.85 per share.

Box shares fell 1.00 or 7.82% to 11.79 in after-hours trading.

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