Box Q4 results mixed, Q1 guidance below estimates

The mixed financial results sent the company's stock down 18 percent after hours.

Box https://www.businesswire.com/news/home/20190227005835/en/Box-Reports-Record-Revenue-608.4-Million-Fiscal mixed fourth quarter financial results on Wednesday and weak Q1 guidance that sent its stock down 18 percent after hours. The enterprise cloud company reported a net loss of $19.6 million, or 14 cents per share, compared to a net loss of $32.6 million the same quarter a year ago.

On a non-GAAP basis, Box reported EPS of 6 cents -- its first ever quarter of positive non-GAAP EPS -- on top of $163.7 million in revenue, up 20 percent year over year. Wall Street was expecting earnings of 2 cents per share with $164.16 million in revenue.

Box said Q4 billings were $237.7  million, up 16 percent year over year. Billings for fiscal year 2019 were $672.9 million, up 15 percent from the last fiscal year.

For the fiscal year, Box said revenue came to $608.4 million, an increase of 20 percent year over year, with a loss of 12 cents a share. Analysts expected a loss of 16 cents a share with revenue of $608.9 million.

"While our Q4 billings results were below our expectations -- driven by underperformance in EMEA and longer sales cycles for some seven-figure deals -- we are encouraged by overall customer momentum and demand for cloud content management," said Box CEO Aaron Levie. "Looking to FY20, we are confident that our leadership position enables us to disrupt the legacy content management market and help our customers accelerate their digital transformation."

In terms of guidance, Wall Street as is looking for fiscal 2020 earnings of 3 cents a share on revenue of $733.5 million. Box responded well below targets, saying it now expects fiscal 2020 revenue in the range of $700 million to $704 million, with EPS between a loss of a three cents and a gain of a penny.

Box is also guiding below target for the current quarter. The company is forecasting revenue in the range of $161 million to $162 million with an earnings per share loss between 6 cents and 5 cents. Analysts are expecting a loss of a penny per share with revenue of $169.82 million.