Box, Inc.’s (BOX - Free Report) fiscal first-quarter 2019 adjusted loss was 7 cents per share, narrower than the Zacks Consensus Estimate of a loss of 8 cents. The reported loss was lower than the guided range of loss of 9-8 cents per share.
Revenues came in at $140.5 million, surpassing the consensus mark of $140 million. Revenues were above the guided range of $139 million and $140 million and increased 20% year over year.
Following the first-quarter results, the share price declined 4.6% due to slower-than-expected revenue growth guidance. Year to date, the stock has gained 26.4%, outperforming its industry’s growth of 9.84%.
During the first quarter, the company had 85,000 paid customers, up from 82,000 in the fourth quarter.
The company’s top-line improvement was driven by growth in paid customers, growing add-on products and positive contribution from its strategic partnerships.
Box is currently working on enriching its cloud content management and AI platforms. It has made some notable partnerships with Apple (AAPL - Free Report) and Microsoft (MSFT - Free Report) .
The company’s rich technology partner ecosystem will continue to be a strong driving force behind its growth and we expect this to continue going forward.
Let’s delve deeper into the numbers.
Billings and Deferred Revenues
Billings were $116.7 million, up 17% year over year. Deferred revenues were $286.9 million, up 31% from the year-ago quarter.
Box’s operating expenses (general &administrative, sales & marketing, and research & development) of $99.1 million increased 9% year over year.
On a non-GAAP basis, the company recorded an operating loss of $9.2 million compared with $16.7 million a year ago. Operating margin was (7%) compared with (14%) in the year-ago quarter.
On a GAAP basis, the company recorded a net loss of $10 million or loss of 7 cents per share compared with the net loss of $16.7 million or loss of 13 cents per share a year ago.
Balance Sheet and Cash Flow
At the end of the fiscal first quarter, cash and cash equivalents, and accounts receivables balance were $217.1 million and $91.0 million, respectively, compared with $208.1 million and $162.1 million at the end of the fourth quarter.
Long-term debt was $40 million, flat with the previous quarter. During the quarter, cash provided by operations was $18.4 million and free cash flow amounted to $7.3 million.
For the second quarter of fiscal 2019, Box expects revenues between $146 million and $147 million. The Zacks Consensus Estimate is pegged at $146.2 million. On a non-GAAP basis, the company projects loss per share in the range of 6-5 cents. The Zacks Consensus Estimate is pegged at a loss per share of 7 cents. GAAP loss per share is expected within 28-27 cents per share.
For fiscal 2019, the company expects revenues between $603 million and $608 million. The Zacks Consensus Estimate is pegged at $605.99 million. On a non-GAAP basis, the company projects loss per share in the range of 19-16 cents. The consensus mark is pegged at a loss per share of 7 cents. GAAP loss per share is expected within $1.07-$1.04 per share.
Zacks Rank and a Stock to Consider
Currently, Box has a Zacks Rank #3 (Hold). A better-ranked stock in the technology sector is Twitter, Inc. (TWTR - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Twitter has a long-term earnings per share growth rate of 23.1%.
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