Box grows revenue by 28 percent in Q2, beats on EPS
Box reported its financial results for the second quarter of fiscal 2018 on Wednesday.
The cloud content management company reported a non-GAAP operating loss of $14.9 million, or 11 cents per share. By comparison, the company posted an operating loss of $18 million, or 14 cents per share, a year earlier. Its revenue came to $122.9 million, up 28 percent year-over-year.
Wall Street analysts were expecting on average a net loss of 13 cents per share on revenue of $$121.7 million, according to Factset.
After two quarters of achieving positive free cash flow, Box reported that for Q2 free cash flow was negative $14.7 million. This compares to negative $8 million in Q2 fiscal 2017.
Billings came to $139.5 million for the quarter, up 31 percent year-over-year. Deferred Revenue for Q2 was $240.8 million, up 32 percent year-over-year. Its paying customer base grew to more than 76,000 businesses, up from more than 74,000 in Q1.
"We are building the only platform capable of moving the $40 billion market for content management and enterprise storage infrastructure to the cloud," CEO Aaron Levie said in a statement.
In the past few months, he noted, Box hired enterprise veteran Stephanie Carullo to serve as Chief Operating Officer, while expanding its offerings in a range of areas targeted at the enterprise. For instance, it introduced Box Elements, a new set of tools that make it easier for businesses to incorporate the Box experience into any application.The company also launched Box Drive, the only unlimited cloud drive built for the enterprise.
Box has also put a strong emphasis on partnerships. It expanded its alliance with Microsoft to co-sell Box with Azure, and it signed a deal with Google to bolster its machine learning capabilities.
CFO Dylan Smith said the company remains "well-positioned to achieve our $1 billion revenue target."
For Q3, Box expects non-GAAP net losses in the range of 14 cents to 13 cents per share and revenue in the range of $128 million to $129 million.
For the full fiscal year, non-GAAP losses are expected to be in the range of 46 cents to 44 cents, with revenue in the range of $503 million to $506 million.
This article was corrected to reflect more accurate EPS expectations from Factset.