fbpx
QQQ
+ 0.37
341.89
+ 0.11%
DIA
-0.08
343.49
-0.02%
SPY
-0.05
424.53
-0.01%
TLT
+ 0.33
140.72
+ 0.23%
GLD
-0.13
174.18
-0.07%

Billings, Box Inc's Key Metric, Were Up 31% In An Impressive Q1

by
June 1, 2017 11:29 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

Analysts at JMP maintain a bullish stance on Box Inc (NYSE:BOX) after the company reported its first-quarter results, in which revenue and earnings per share came in better than Wall Street expected.

JMP's Greg McDowell commented in a research report that Box's billings in the quarter rose 31 percent year over year to $99.6 million and came in above the $97.2 million Wall Street expected. The earnings report also marked the company's second consecutive and second-ever free cash flow positive quarter, and also showed strength in its major business drivers of cross-sell and partner momentum.

Box signed 25 deals in the quarter worth over $100,000, which marks a 47-percent improvement from a year ago, the analyst noted. In fact, one-third of the deals consisted of partners like International Business Machines Corp. (NYSE:IBM) that teamed up for two of the largest international deals in the quarter.

tipranks.png

Stepping Back

Box's stock remains attractive to McDowell for three core reasons:

    1. A long runway of growth of at least 25 percent as the company has plenty of room to expand its platform business, cross-sell additional products and gain traction with large partners.
    2. There exists significant leverage in the company's model, especially in sales and marketing.
    3. The competitive environment is weakening at a time when Box is seeing momentum.

McDowell concluded that at $19 per share, "Box's valuation implies a 4.5x EV/CY 2018E multiple while a $22 price target implies a 5x multiple, which is still a discount to the peer group median of 6.5x."

At last check, Box shares were up 6.63 percent at $19.93.

Related Links:

Mid-Morning Market Update: Markets Edge Higher; Dollar General Tops Q1 Expectations

Palo Alto's Q3 Bounce Back Is Just The Beginning

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.


Related Articles

The Street Debates Box: Buy The Dip Or Expect More Declines?

MUFG Analyst Upgrades Box On Momentum, 'Multitude Of Opportunities'

Why KeyBanc Is More Bullish On Box Than Dropbox

In separate notes, KeyBanc Capital Markets initiated coverage of collaboration technology leader Dropbox Inc (NASDAQ: DBX) and cloud content leader Box Inc (NYSE: BOX). read more

UPDATE: KeyBanc On New Overweight Rating For Box: Sees Transition to Cloud as Large Opportunity to Gain Market Share