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.
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“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.