(Bloomberg) -- Box Inc. reported quarterly profit that easily beat Wall Street estimates, after the maker of file-sharing and collaboration software trimmed expenses. The stock rose more than 1% in extended trading.
Earnings, excluding certain items, came in at 10 cents a share in the fiscal first quarter. Analysts were looking for 5 cents, on average, according to data compiled by Bloomberg. Sales rose 13% to $184 million, topping Wall Street projections.
For the full fiscal year, Box forecast profit of 47 cents to 52 cents a share, compared with analysts’ estimates of 37 cents.
Chief Executive Officer Aaron Levie has been under pressure to boost sales growth and profitability. He has sought to cut unnecessary expenses, and Wednesday’s results reflected that. The company said it expects an adjusted operating margin of 11% to 12% this fiscal year, up from a previous forecast of 9% to 10%.
“Our Q1 results demonstrate the progress that we’ve made on driving a balance of growth and profitability, and our ability to power secure remote work for enterprises provides us a large opportunity going forward,” Levie said in a statement.
Box reached an agreement in March with activist investor Starboard Value LP to appoint three new independent directors. The company unveiled a new app design and a deeper integration with Zoom Video Communications Inc. this month, in a bid to bolster the appeal of Box’s services.
Now, Levie is contending with a coronavirus pandemic that has triggered a deep recession and forced millions of people to shelter at home. Box trimmed its annual sales forecast on Wednesday, suggesting weaker demand from small-business customers.
Carl Bass, the former CEO of software maker Autodesk Inc. joined Box’s board, the company also announced.
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