However, the SaaS platform has seen strong demand from
existing clients and this can be expected to continue in the second quarter, helping
drive revenue. The topline numbers are also likely to benefit from the company’s
investments in security solutions, which are gaining prominence in the current
environment.
In the first quarter of 2020, Box beat expectations with a 16% growth in revenue to $163 million and a narrower-than-expected loss of $0.03 per share. Billings rose 1% to $118.4 million.
Also see: Box Q1 2020 Earnings Conference Call Transcript
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For the second
quarter of 2020, Box has guided for revenue of $169-170 million and adjusted loss
per share of $0.02 to $0.01.
The company
lowered its revenue outlook for the full year of 2020 to a range of $688-692
million from the prior range of $700-704 million. Adjusted EPS is projected
to be $0.00-0.02.
Box’s shares have dropped 19% year-to-date and 18% in the past one month. The stock has an average 12-month price target of $20.56.