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Box (BOX) Q3 Earnings and Revenues Top Estimates, Rise Y/Y
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Box, Inc. (BOX - Free Report) reported fiscal third-quarter 2021 earnings per share of 20 cents, which surpassed the Zacks Consensus Estimate of 14 cents. The company recorded a loss of $0.01 per share a year ago.
Total revenues came in at $196 million, surpassing the consensus mark by 1.01%. The top line increased 10.6% year over year and was above the guided range of $193-$195 million.
Despite strong fiscal third-quarter results, its share price was down 0.8% due to weaker-than-expected revenue guidance.
The global shift to work from home due to the coronavirus crisis increased the demand for Box’s online collaboration tools.
Also, strength in financial services and health-care organizations’ sales aided growth for the quarter. In addition, strong demand for its add-on products and high volume of large enterprise deals were positives.
The company’s rich technology partner ecosystem will continue to be a strong driving force behind growth.
Billings were $185.5 million, up 7.9% year over year. Deferred revenues were $354.4 million, up 8.8% from the year-ago quarter.
Operating Results
Non-GAAP gross profit for the fiscal third quarter was $143.9 million, up 14.8% year over year.
Box’s operating expenses (general & administrative, sales & marketing, as well as research & development) of $141.8 million decreased 11.4% year over year.
On a non-GAAP basis, the company recorded operating income of $35.2 million versus operating loss of $0.5 million a year ago. Operating margin was 18%, up 1,800 basis points year over year.
Balance Sheet and Cash Flow
At quarter-end, cash and cash equivalents, and accounts receivables balance were $275.4 million and $115.7 million compared with $271.9 million and $123 million, respectively, at fiscal second quarter-end.
Net cash provided by operations was $45.1 million and free cash flow was $26.2 million for the fiscal third quarter.
Guidance
For the fourth quarter of fiscal 2021, Box expects revenues between $196 million and $197 million. The Zacks Consensus Estimate for the same is pegged at $198.7 million. On a non-GAAP basis, the company projects earnings per share within 16-18 cents. The corresponding Zacks Consensus Estimate is pegged at 15 cents per share. GAAP loss per share is expected within 8-6 cents.
For fiscal 2021, Box’s revenue guidance is expected within $768-$769 million. The Zacks Consensus Estimate for the metric is pegged at $768.7 million. On a non-GAAP basis, it projects earnings per share in the range of 64-66 cents. The consensus mark for the same is pegged at 58 cents per share. GAAP loss per share is expected in the range of 32-30 cents.
Long-term earnings growth for Marchex, Overstock.com, and Maxim is currently projected at 15%, 20% and 10%, respectively.
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You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Box (BOX) Q3 Earnings and Revenues Top Estimates, Rise Y/Y
Box, Inc. (BOX - Free Report) reported fiscal third-quarter 2021 earnings per share of 20 cents, which surpassed the Zacks Consensus Estimate of 14 cents. The company recorded a loss of $0.01 per share a year ago.
Total revenues came in at $196 million, surpassing the consensus mark by 1.01%. The top line increased 10.6% year over year and was above the guided range of $193-$195 million.
Despite strong fiscal third-quarter results, its share price was down 0.8% due to weaker-than-expected revenue guidance.
The global shift to work from home due to the coronavirus crisis increased the demand for Box’s online collaboration tools.
Also, strength in financial services and health-care organizations’ sales aided growth for the quarter. In addition, strong demand for its add-on products and high volume of large enterprise deals were positives.
The company’s rich technology partner ecosystem will continue to be a strong driving force behind growth.
Let’s delve deeper into the numbers.
Box, Inc. Price, Consensus and EPS Surprise
Box, Inc. price-consensus-eps-surprise-chart | Box, Inc. Quote
Billings and Deferred Revenues
Billings were $185.5 million, up 7.9% year over year. Deferred revenues were $354.4 million, up 8.8% from the year-ago quarter.
Operating Results
Non-GAAP gross profit for the fiscal third quarter was $143.9 million, up 14.8% year over year.
Box’s operating expenses (general & administrative, sales & marketing, as well as research & development) of $141.8 million decreased 11.4% year over year.
On a non-GAAP basis, the company recorded operating income of $35.2 million versus operating loss of $0.5 million a year ago. Operating margin was 18%, up 1,800 basis points year over year.
Balance Sheet and Cash Flow
At quarter-end, cash and cash equivalents, and accounts receivables balance were $275.4 million and $115.7 million compared with $271.9 million and $123 million, respectively, at fiscal second quarter-end.
Net cash provided by operations was $45.1 million and free cash flow was $26.2 million for the fiscal third quarter.
Guidance
For the fourth quarter of fiscal 2021, Box expects revenues between $196 million and $197 million. The Zacks Consensus Estimate for the same is pegged at $198.7 million. On a non-GAAP basis, the company projects earnings per share within 16-18 cents. The corresponding Zacks Consensus Estimate is pegged at 15 cents per share. GAAP loss per share is expected within 8-6 cents.
For fiscal 2021, Box’s revenue guidance is expected within $768-$769 million. The Zacks Consensus Estimate for the metric is pegged at $768.7 million. On a non-GAAP basis, it projects earnings per share in the range of 64-66 cents. The consensus mark for the same is pegged at 58 cents per share. GAAP loss per share is expected in the range of 32-30 cents.
Zacks Rank and Stocks to Consider
Currently, Box has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Marchex (MCHX - Free Report) , Overstock.com and Maxim Integrated Products, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Marchex, Overstock.com, and Maxim is currently projected at 15%, 20% and 10%, respectively.
Zacks Names “Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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