Box Inc. Reports Strong Q2 Results

REDWOOD CITY, Calif. – Box Inc. (NYSE:BOX) reported better-than-expected second quarter results and raised its full-year outlook, sending shares up 4% in after-hours trading on Tuesday.

The cloud content management company posted adjusted earnings of $0.44 per share for the quarter ended July 31, beating analyst estimates of $0.40. Revenue rose 3% YoY to $270 million, slightly above the $269.5 million consensus.

Box’s revenue growth accelerated to 6% on a constant currency basis. The company also reported a record
non-GAAP gross margin of 81.6% and an operating margin of 28.4% for the quarter.

“As we enter the era of Intelligent Content Management, Box is delivering a singular platform that can power the lifecycle of content with intelligence built right in,” said Aaron Levie, co-founder and CEO of Box.

Looking ahead, Box raised its full-year guidance, now expecting adjusted earnings of $1.64 to $1.66 per share on revenue of $1.086 billion to $1.09 billion. Both ranges came in above Wall Street forecasts.

For the current third quarter, Box projects adjusted EPS of $0.41 to $0.42 on revenue between $274 million and $276 million, also topping analyst expectations.

The company’s billings, a key metric of sales activity, increased 10% YoY to $256.4 million in Q2.

Box also announced a new $100 million expansion of its stock repurchase program, highlighting confidence in its business model and growth prospects.

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