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

Zacks Equity Research

Box, Inc. 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 and Microsoft.

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

Box, Inc. Price, Consensus and EPS Surprise

 

Box, Inc. Price, Consensus and EPS Surprise

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

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. GOOGL, Itron, Inc. ITRI and Teradyne, Inc. 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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