Box Inc Q3 Earnings: Meeting Expectations


Small cap cloud storage stock Box Inc (NYSE: BOX), whos financialsonce had the dubious distinction of once being labeled a house of horrors in a Bloomberg interviewwithTrue Ventures Partner Om Malik, reported fiscal Q3 2018 earnings (ended October 31, 2017) after the market closed Wednesday with results meeting expectations albeit shares are falling in after hours / premarket trading. Revenue of were up 26% to a record $129.3 million while billings were also up 26% to $141.5 million and deferred revenue (as of October 31, 2017) was up 31% to$253.0 million. The net loss though was $42.924 million versus a net loss of $38.233 million. Co-founder and CEO Aaron Levie commented:


In Q3, we continued to extend our lead in cloud content management by innovating on our core products and by unveiling new capabilities like Box Skills and Box Graph that will help enterprises bring AI and machine learningto their content in Box. By making Box the most intelligent and secure cloud content management platform, we are becoming more and more critical to powering our customers as they modernize their businesses and drive digital transformation.

Co-founder and CFO Dylan Smith added:

We are driving operational efficiencies across our business as evidenced by a year-over-year improvement of $21 million in our cash flow from operations to $14 million. With our ability to balance innovation, growth and profitability, we are well-positioned to achieve our $1 billion revenue target in the coming years.


A technical chart for Box Inc shows shares breaking out from a previous support level at the $17.50 level:

A long term performance chart shows shares of Box Inc underperforming potential mid cap peers Paycom Software Inc (NYSE: PAYC)andTriNet Group Inc (NYSE: TNET)plussmall cap peer Paylocity Holding Corp (NASDAQ: PCTY) whichall had IPOs around the same time:


Finally, here is a quick recap of Box Incs recent earnings history along with EPS estimate trends from the Yahoo! Finance analyst estimates page going into the current earnings report:

Earnings History1/30/20174/29/20177/30/201710/30/2017
EPS Est. -0.14 -0.14 -0.13 -0.13
EPS Actual -0.1 -0.13 -0.11 -0.13
Difference 0.04 0.01 0.02 0
Surprise % 28.60% 7.10% 15.40% 0.00%
EPS TrendCurrent Qtr. (Jan 2018)Next Qtr. (Apr 2018)Current Year (2018)Next Year (2019)
Current Estimate -0.08 -0.08 -0.45 -0.22
7 Days Ago -0.08 -0.08 -0.45 -0.22
30 Days Ago -0.08 -0.08 -0.45 -0.22
60 Days Ago -0.08 -0.08 -0.45 -0.22
90 Days Ago -0.08 -0.08 -0.45 -0.22

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