Box hits first full year of non-GAAP profitability, beats Q4 expectations

Etsy and Nutanix also reported better-than-expected results for the last quarter

Cloud content management company Box achieved its first full year of non-GAAP profitability in FY 2020, it reported Wednesday. After a year of fleshing out its multi-product platform, the company saw record business coming from add-on products in the fourth quarter. 

Non-GAAP net income per share in the fourth quarter was 7 cents on revenue of  $183.6 Million, up 12 percent year-over-year. 

Analysts were looking for earnings of 4 cents on revenue of $181.63 million.

"In fiscal 2020, we launched two major new products, Box Relay and Box Shield, building out our multi-product platform and solidifying our leadership in the cloud content management market," CEO Aaron Levie said in a statement. "With these added capabilities, we are seeing more and more of our customers adopt the full power of Box through our Enterprise Suite offering. Looking ahead to FY21, we are focused on driving healthy growth and significantly improved profitability."

For the full fiscal year 2020, non-GAAP net income was 3 cents on revenue of $696.3 million, an increase of 14 percent from fiscal year 2019.

Fourth quarter billings came to $281.9 Million, up 19 percent year-over-year. For the full year, billings came to $745.1 million, an increase of 11 percent from fiscal year 2019.

For Q1 2021, Box expects revenue in the range of $183 million to $184 million. Non-GAAP diluted net income per share is expected to be in the range of 4 cents to 6 cents.

For the full fiscal year 2021, revenue is expected to be in the range of $771 million to $777 million. Non-GAAP diluted net income per share is expected to be in the range of 38 cents to 44 cents. 

Nutanix also had better-than-expected financial results for the last three months. The enterprise cloud company reported a non-GAAP net loss per share of 60 cents on revenue of $346.8 million, up from $335.4 million in Q2 2019. 

Analysts were looking for a net loss of 69 cents on revenue of $341.09 million.

The company is transitioning to a subscription-based revenue model, with subscription billings up 45 percent year-over-year in Q2 to reach $339 million. Subscriptions represented 79 percent of total billings in the quarter. Subscription revenue was up 69 percent year-over-year to $267 million, representing 77 percent of total revenue.

Nutanix added 920 new customers in the quarter, bringing total customers to 15,880.

"Our solutions-based approach to our go-to-market strategy is helping customers realize the benefits and power of our new products in conjunction with our core software," CEO Dheeraj Pandey said in a statement. "As a result, we increased the attach rate of our new products to 31%, up from 21% as of Q2 fiscal 2019. We were also pleased with several other key drivers of growth for our business in the quarter, including our partnership with HPE and traction in the U.S. commercial segment."

For the third quarter of fiscal 2020, Nutanix expects a non-GAAP net loss per share of approximately 89 cents. 

E-commerce business Etsy also delivered sales above expectations. Fourth quarter net income came to 25 cents a share on revenue of $270 million. 

Analysts were looking for earnings of 16 cents on revenue of $264.91 million.

In the quarter $13.1 million in revenue was related to the results of Reverb, the online marketplace for musical instruments that Etsy acquired last August. 

For the full fiscal year 2019, Etsy reported revenue of $818 million. 

"Last March we laid out a multi-year growth strategy for Etsy, including an ambitious product, marketing, and technology roadmap, which deepen our Right to Win and serve as the foundation for our five-year growth targets through 2023," CEO Josh Silverman said in a statement. "We're off to a great start with our 2019 performance, by staying focused on the fewest things that can make the greatest impact for buyers and sellers, including new initiatives that will further our competitive advantages and meaningfully contribute to future results."