Box (NYSE: BOX) Q4 profit beats estimates, guides Q1 above view

Box Inc. (NYSE: BOX) reported a wider loss for the fourth quarter of 2020 due to higher costs and expenses despite a 12% jump in the top line. However, the results exceeded analysts’ expectations. Further, the company guided first-quarter earnings and revenue above the consensus view.

Net loss was $30.4 million or $0.20 per share compared to a loss of $19.7 million or $0.14 per share in the previous year quarter. Adjusted EPS increased by 17% to $0.07. Revenue grew by 12% to $183.6 million. Analysts had expected EPS of $0.04 on revenue of $181.63 million.

Looking ahead into the first quarter of 2021, the management expects revenue in the range of $183-184 million and adjusted earnings in the range of $0.04-0.06 per share. The GAAP loss per share is predicted to be in the range of $0.25-0.23. The consensus estimates EPS of $0.03 on revenue of $181.8 million.

For fiscal 2021, revenue is projected to be in the range of $771-777 million and adjusted earnings are anticipated to be in the range of $0.38-0.44 per share. The GAAP loss is projected to be in the range of $0.78-0.71 per share. The consensus estimates EPS of $0.29 on revenue of $773.07 million.

The remaining performance obligations were $767.8 million as of January 31, 2020, up 12% from the fourth quarter of 2019. There was a 19% growth in billings to $281.9 million. Deferred revenue increased by 13% to $423.8 million. The results were benefited by the record business coming from its add-on products.

In fiscal 2020, the company launched two major new products, Box Relay and Box Shield. The two new products build out the company’s multi-product platform and solidifying its space in the cloud content management market.

Read: Salesforce Q4 earnings review

The company has been experiencing a decline in revenue growth for several years. However, Box believes that Box Shield is likely to become a major growth driver in the long term as more companies are venturing into the cloud platform and Box Shield helps in reducing security risk by protecting cloud user data.

Looking ahead into fiscal 2021, the company continues to remain focused on driving healthy growth and significantly improved profitability. Also, Box is committed to delivering significant improvements in operating margin in fiscal 2021 and beyond backed by its improved operating efficiencies.

After falling over 38% in the past year, the shares have shown some improvement as it gained over 7% in after-hours trading. The stock, which closed at $14.98 on Wednesday, is below the 50-day moving average of $15.94 and the 200-day moving average of $16.28.

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