Box Q3 tops estimates as cloud company nears profitability

Box CFO Dylan Smith said the company expects to deliver its first quarter of non-GAAP profitability in its fiscal Q4.

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Enterprise cloud company Box said on Wednesday that it expects to deliver its first quarter of non-GAAP profitability in its fiscal Q4.

"With more than 40 percent growth in deals worth more than $100K and our attach rate for add-on products increasing to over 80 percent of these deals, we are capturing our market opportunity while driving continued leverage for long-term growth," said Box CFO Dylan Smith, in a statement for the company's third quarter financial results, released today.

As for the rest of the company's numbers, Box reported a Q3 net loss of $39.5 million, or 28 cents per share. On a non-GAAP basis, the net loss was 6 cents per share on top of $155.9 million in revenue, up 21 percent year over year.

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Wall Street was expecting a net loss of 7 cents per share with $154.6 million in revenue.

Box said Q3 billings were $155.6 million, up 10 percent year over year.

In terms of guidance, Wall Street as is expecting Box to report a Q4 net loss of 2 cents per share on revenue of $164.25 million. Box responded on the low end, saying it expects Q4 revenue in the range of $163.5 million to $164.5 million. However, Box expects its EPS to move out of the red with per-share earnings ranging from 2 cents to 3 cents.

For the year, Box expects revenue to be in the range of $608.2 million to $609.2 million, with the non-GAAP net loss between 15 cents and 16 cents. Analysts are expecting revenue of $607.52 million with the non-GAAP net loss at 18 cents a share.

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