Box Inc. (NYSE: BOX) reported a narrower net loss for the third quarter of 2020, aided by a 14% increase in revenues. The top-line also beat the Street view. The company’s shares rose sharply in the aftermarket hours on Tuesday, immediately after the announcement.
On an adjusted basis, the company reported a net loss of $0.01 per share for the third quarter, compared to a loss of $0.06 per share last year. Unadjusted net loss was broadly unchanged at $40.9 million or $0.28 per share. The bottom-line also matched analysts’ forecast.
Revenue up 14%
Total revenues of $177.2 million were up 14% from the third quarter of last year. Market watchers had forecast slower growth. The remaining performance obligations were $636.0 million at the end of the quarter, up 5% from the third quarter of 2019. There was a 10% growth in billings to $171.9 million. The results benefited from the strong delivery of key products and go-to-market initiatives.
Related: Alibaba posts solid Q2 results
“We continue to build the foundation to drive more profitable growth. In Q3, we delivered operational efficiencies on our path to achieving our first full year of non-GAAP profitability in FY20, and we are committed to delivering significant improvements in operating margin in FY21 and beyond,” said CEO Aaron Levie.
Outlook
Looking ahead, the management expects fourth-quarter revenue to be in the range of $181 million to $182 million and unadjusted loss in the range of $0.22 per share to $0.21 per share. The estimate for fourth-quarter adjusted earnings is $0.04-$0.05 per share.
For the whole of fiscal 2020, Box expects revenue to be between $693.7 million and $694.7 million. Full-year net loss, on an unadjusted basis, is expected to be $1.01 per share, while adjusted profit is estimated at about $0.01 per share.
Box’ stock plunged to a near three-year low a few months ago, but bounced back and stabilized in recent weeks. The shares declined by 14% since the beginning of 2019. The gained sharply during Tuesday’s extended trading session, soon after the earnings report.
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