Box posts record revenue in Q2

The cloud content management company has yet to turn a profit but continues to grow sales by offering new capabilities and making strategic partnerships.
Written by Stephanie Condon, Senior Writer

Box published its second quarter financial results on Tuesday, slightly beating market estimates and posting record revenues.

The cloud content management company posted a non-GAAP operating loss of 5 cents per share, compared with a net loss of 11 cents per share a year prior. Revenue came to $148.2 million, up 21 percent year-over-year.

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Wall Street was expecting a net loss of 6 cents per share on revenue of $146.54 million.


Free cash flow for Q2 fiscal 2019 came to negative $10.3 million, an improvement from negative $15 million in Q2 fiscal 2018. Billings for the second quarter came to $162.8 million, an increase of 17 percent year-over-year.

Box highlighted that it now has more than 87,000 paying customers, including large organizations such as the city of Atlanta, Lionsgate, Nationwide and the Sacramento Kings. With stiff competition in the space of content management and collaboration, Box is trying to expand sales with existing customers by offering new capabilities in areas like machine learning and compliance.

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"Driving deeper relationships with customers such as JLL, Nationwide and Societe Generale, as well as focusing on strategic solution sales, led to another quarter of strong attach rates for add-on products like Box Governance, Zones and Platform," CEO Aaron Levie said in a statement. "Our approach to providing a single, neutral platform for cloud content management with enterprise-grade security and powerful workflow capabilities positions us to help the world's largest and most regulated enterprises digitize their workplace and business processes."

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In addition to adding new features and capabilities, Box has attempted to add customer value by forging strategic partnerships and adding third-party integrations to its products. The company on Tuesday highlighted its integrations with ServiceNow and Quip, as well as the introduction of Box Skills, a machine learning service offered in partnership with IBM.

For the third quarter, Box said it expects a non-GAAP net loss in the range of 8 cents to 7 cents. It expects revenue in the range of $154 million to $155 million.

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