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Box Inc. reported fiscal second-quarter revenue and adjusted earnings on Wednesday that exceeded Wall Street analysts’ forecasts, and said it is on pace for its first $250 million-revenue quarter.
Box
BOX,
reported earnings of $1.05 million, or 2 cents a share, compared with a net loss of $8.7 million, or 8 cents a share, in the year-ago quarter. Adjusted earnings were 28 cents a share.
Revenue jumped 15% to $246 million from $214.5 million a year ago.
Analysts polled by FactSet had estimated earnings of 27 cents a share on revenue of $245.3 million.
Box shares initially dipped 5% in extended trading Wednesday, but recovered and are now flat.
“Enterprises are increasingly making strategic long-term decisions on how to support a remote workforce and digital processes while maintaining a high level of security and compliance,” Box Chief Executive Aaron Levie told MarketWatch. He pointed to contract wins or expansion of deals with the likes of Marriott International Inc.
MAR,
Reddit and New York Genome Center.
“It is an incredibly complicated time for enterprises to digitally transform their workflows while at the same time save money during such economically challenging times,” Levie said. “By having a single platform, we think we can help them in their transformation while lowering costs by retiring their legacy systems.”
Box expects to see that growth play out in its current third quarter, the first in which it should top $250 million in sales. It is forecasting revenue of between $250 million and $252 million. Analysts polled by FactSet are projecting revenue of $251.6 million for Q3.
Shares of Box have gained 12% this year, while the broader S&P 500 index
SPX,
has declined 13%.
