It has been about a month since the last earnings report for Box (BOX). Shares have added about 7.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Box due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Box Q1 Earnings and Revenues Top Estimates, Rise Y/Y
Box, Inc. reported fiscal first-quarter 2021 earnings per share of 10 cents, which surpassed the Zacks Consensus Estimate by 5 cents. The company had recorded a loss of $0.03 per share a year ago.
Total revenues came in at $183.56 million, surpassing the consensus mark by 0.3%. The top line increased 12.6% year over year and was within the guided range of $183-$184 million.
Following strong fiscal first-quarter results, the share price rose 5.02%.
The global shift to work from home due to the coronavirus crisis increased the demand for Box’s online collaboration tools.
Also, strong demand for its add-on products and high volume of large enterprise deals aided revenue growth during the quarter.
Box is currently working on enriching cloud content management and AI platforms. During the quarter, it made some notable partnerships and deeper integrations with leading organizations such as BETC, City of Berkeley FLIR, NASA, National Bank of Canada, Toyota Finance Corporation, and many more.
The company’s rich technology partner ecosystem will continue to be a strong driving force behind growth.
Let’s delve deeper into the numbers.
Billings and Deferred Revenues
Billings were $128.1 million, up 8% year over year. Deferred revenues were $368.3 million, up 11% from the year-ago quarter.
Box’s operating expenses (general & administrative, sales & marketing, as well as research & development) of $153.8 million increased 2.8% year over year.
On a non-GAAP basis, the company recorded operating income of $17.2 million versus operating loss of $3 million a year ago. Operating margin was 9% versus 2% 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 $268 million and $99.1 million compared with $195.6 million and $209.4 million, respectively, at fiscal fourth quarter-end.
Net cash provided by operations was $61.9 million and free cash flow was $39.8 million in the fiscal first quarter.
For the second quarter of fiscal 2021, Box expects revenues between $189 million and $190 million. On a non-GAAP basis, the company projects earnings per share within 12-14 cents. GAAP loss per share is expected within 13-11 cents.
For fiscal 2021, Box’s revenue guidance is expected within $760-$768 million. On a non-GAAP basis, it projects earnings per share in the range of 47-52 cents. GAAP loss per share is expected in the range of 55-50 cents.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 34.71% due to these changes.
Currently, Box has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Box has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Box, Inc. (BOX) : Free Stock Analysis Report
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