Box Beats Q2 Expectations, Shares Gain

Shares of

gained over 3 percent in after-hours trading after the company reported a narrower-than-expected loss for the second quarter. The Los Altos, California-based company posted a quarterly net loss of $50.2 million, or $0.42 per share, versus a year-ago loss of $39.4 million, or $2.71 per share. Excluding items, non-GAAP net loss narrowed to $0.28 per share from $2.01 per share. Its revenue climbed 43 percent year-over-year to $73.5 million for the second quarter. However, analysts were expecting a loss of $0.29 per share on revenue of $69.81 million. The average estimate among 25 Estimize users was for a loss of $0.28 per share and revenue of $70.20 million. Billings rose 45 percent to $79.6 million in the quarter. As of July 31, 2015, the company had $242.2 million in cash, cash equivalents and marketable securities. "We delivered another strong quarter with year over year revenue growth of 43% and billings growth of 45% driven by new and expanding customer deployments," said Aaron Levie, co-founder and CEO of Box. "We continue to invest in our core platform while adding new products like Enterprise Key Management and Governance that augment our ability to capture demand in the broader enterprise content management market. Later this month at BoxWorks, we'll announce several more innovations and showcase how our customers are leveraging Box to transform their businesses." For the third quarter, Box expects sales of $76 million to $77 million, versus analysts' estimates of $74 million. The company projects FY16 sales of $295 million to $297 million, versus expectations of $289.6 million. Box shares rose 3.09 percent to $14.69 in the after-hours trading session.