Box has raised its growth forecast for the fiscal year after announcing a 43% jump in second-quarter revenue. The company has been adding new enterprise customers to its customer list and attracting more employees inside each of those businesses.
The company’s net loss widened, however, as Box continued to spend heavily on marketing to help grab a larger share of the market for enterprise services.
Results were better than analysts had expected, leading to a 3% increase in shares for a stock valuation of $14.70 during after-hours trading.
During an earnings call on Wednesday, Box CEO Aaron Levie said it “was a breakout quarter for Box across multiple dimensions… We did deals with thousands of new and existing customers.”
The company went public in January and its stock slide on signs of slowed growth. The share prices at Box are still well below the $23.23 it achieved during the first day of trading.
Box has attracted 39 million registered users, up nearly two million from the first quarter ending in April. Box said the percentage of paid users was about 11% in the second quarter.
The company has been working with third-party vendors to increase sales. In June the company announced a new partnership with IBM, a deal that allowed IBM representatives to sell Box service to its enterprise customers. In exchange for Box services, the company can now use IBM’s data centers to host services in countries where it doesn’t have its own facilities.
The company says it is hoping to achieve positive free cash flow in the quarter ending January 2017.
In the latest quarter, Box reported a net loss of $49.8 million, or 42 cents a share.
Excluding stock-based compensation and other items, Box reported an adjusted loss per share of 28 cents. Analysts on that basis had predicted a per-share loss of 29 cents on revenue of $70 million.
Box has projected revenue of $295 million to $297 million, up from a prior projection of $286 million to $290 million.
This article was syndicated from Business 2 Community: Box Revenue Jumps 43% in Q2 On Better Than Expected Growth
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