Categories AlphaGraphs, Earnings, Technology

Box stock drops after weak Q1, 2020 outlook

Box Inc. (NYSE: BOX) reported a narrower loss in the fourth quarter of 2019 helped by higher revenue. The bottom line exceeded analysts’ expectations while the top line missed consensus estimates. The company issued guidance for the first quarter and full-year 2020 below the Street’s view. Following this, the stock plunged over 22% in the after-market session.

Net loss was $19.7 million or $0.14 per share, narrower than the previous year’s loss of $32.7 million or $0.24 per share. Adjusted earnings were $0.06 per share compared to a loss of $0.06 per share in the prior-year quarter.

Revenue grew by 19.8% to $163.7 million. Deferred revenue as of January 31, 2019, was $375.0 million, an increase of 17% from last year. Billings jumped by 16% to $237.7 million for the fourth quarter.

Box Inc fourth quarter 2019 earnings snapshot
Box Inc. Q4 2019 Earnings Infographic

Looking ahead into the first quarter of fiscal 2020, the company expects revenue in the range of $161 million to $162 million and a loss in the range of $0.29 to $0.28 per share. Adjusted loss is predicted to be in the range of $0.06 to $0.05 per share.

For the full year 2020, Box predicts revenue in the range of $700 million to $704 million and loss in the range of $1.06 to $1.02 per share. Adjusted per share results are anticipated to be between a loss of $0.03 and a profit of $0.01.

For the fourth quarter, Box continued to drive operational efficiencies, including achieving its first quarter of non-GAAP profitability. The company said its Q4 billings results were below its expectations due to the underperformance in EMEA and longer sales cycles for certain seven-figure deals. Box is encouraged by overall customer momentum and demand for cloud content management.

The company grew paying-customer base to more than 92,000 organizations, including new or expanded deployments with leading enterprises such as Allina Health System, Intuit, Live Nation, MGM Studios, Red Robin International, Inc., Silicon Valley Bank, ServiceNow, State Street, and Vistra Energy.

Shares of Box ended Wednesday’s regular session up 2.26% at $24.88 on the NYSE. The stock has risen over 3% in the past year and over 42% in the past three months.


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