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Box (BOX) Q1 Loss Narrower Than Expected, Revenues Beat

Zacks Equity Research

Box, Inc.’s BOX fiscal first-quarter 2020 adjusted loss was 3 cents per share, narrower than the Zacks Consensus Estimate of a loss of 5 cents.

Total revenues came in at $163 million, surpassing the consensus mark of $162 million. The top line increased 16% year over year and was above the guided range of $161-$162 million.

Box is currently working on enriching cloud content management and AI platforms. It has made some notable partnerships with Apple and Microsoft.

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 $118.4 million, up 1% year over year. Deferred revenues were $330.4 million, up 15% from the year-ago quarter.

Operating Results

Box’s operating expenses (general & administrative, sales & marketing, as well as research & development) of $149.7 million increased 9% year over year.

On a non-GAAP basis, the company recorded operating loss of $3 million compared with a loss of $9.2 million a year ago. Operating margin was (2%) versus (7%) 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 $231.4 million and $93.7 million compared with $217.5 million and $175.1 million, respectively, at the end of the fiscal fourth quarter.

During the quarter, cash provided by operations was $25.5 million and free cash flow amounted to $13.4 million.

Guidance

For the second quarter of fiscal 2020, Box expects revenues between $169 million and $170 million. The Zacks Consensus Estimate for the same is pegged at $179.8 million. On a non-GAAP basis, the company projects loss per share in the range of 2-1 cents. The corresponding Zacks Consensus Estimate is pegged at a loss of 2 cents per share. GAAP loss per share is expected within 29-28 cents.

For fiscal 2020, Box expects revenues between $688 million and $692 million. The Zacks Consensus Estimate for the metric is pegged at $702.1 million. On a non-GAAP basis, it projects earnings per share in the range of $0.00 to 2 cents. The consensus mark for the same is pegged at earnings of 2 cents per share. GAAP loss per share is expected within $1.05-$1.03.

Box, Inc. Price, Consensus and EPS Surprise

 

Box, Inc. Price, Consensus and EPS Surprise

Box, Inc. price-consensus-eps-surprise-chart | Box, Inc. Quote

Zacks Rank and Other Stocks to Consider

Currently, Box has a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader technology sector include Facebook, Inc. FB, IAC/InterActiveCorp IAC and AXT, Inc. AXTI, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for Facebook, IAC/InterActiveCorp and AXT is currently projected at 20.2%, 20.5% and 15%, respectively.

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