This post was originally published on this site
Box Inc. reported better-than-expected financial results Wednesday, two days after an influential proxy advisory firm gave it a vote of confidence against an activist investor.
The cloud-storage company
BOX,
announced fiscal second-quarter results that beat the top and bottom lines, though shares were down 3% in extended trading.
“These megatrends of digital transformation and companies embracing a remote workforce and digital processes in this hybrid world makes us very confident for sustainable momentum,” Box Chief Executive Aaron Levie told MarketWatch. The company raised fiscal 2022 revenue guidance to between $856 million and $860 million, topping analyst estimates of $853.4 million.
Box reported a net loss of $8.7 million, or 8 cents a share, compared with a net loss of $7.66 million, or 5 cents a share, in the year-ago quarter. The company reported adjusted net income of 21 cents a share.
Revenue climbed 12% to $214.5 million from $192.3 million a year ago.
Analysts surveyed by FactSet had expected net income of 18 cents a share on revenue of $212.4 million.
The quarter marked the latest year-over-year improvement for Box, whose recent financial performance gained the company an important ally earlier in the week.
On Monday, powerful proxy advisory firm Institutional Shareholder Services backed Box in its fight with aggressive activist investor Starboard Value by recommending that shareholders vote for Box’s directors instead of the hedge fund’s nominees.
ISS recommended shareholders vote for Box directors Levie and Peter Leav because the current board has made “significant changes” to lead a turnaround. “ISS recognized that the Box of today is not the Box of 2019,” it said in a statement.
“Since the 2020 settlement with the dissident and the formation of the operating committee, the company appears to have made significant progress on the margin side over the past several quarters,” ISS concluded in a report. “While the revenue metrics are taking longer to improve, the company’s assertion that there are green shoots appears fair, particularly in the most recent quarters, as evidenced by the improvements in net retention rate and large deal growth.”
In a separate statement, Box said it was “pleased that ISS has recommended that stockholders vote on the company’s proxy card and recognizes that the Box of today is not the Box of 2019.” The company’s annual shareholders meeting is scheduled Sept. 9.
Shares of Box have climbed 42% this year. The broader S&P 500 index
SPX,
has gained 20% in 2021.
