Box Q1 Loss Widens, Outlook Strong, Shares Up 7%

(RTTNews) - Cloud storage firm Box Inc. (BOX), Wednesday reported a first-quarter loss that widened from a year ago, as higher revenues were offset by higher operating expenses and special charges. Earnings for the quarter fell short of estimates, but revenues trumped expectations.

Moving ahead, the company detailed a strong outlook for the second quarter and lifted its full year guidance, sending its shares up over 7 percent in the extended trading.

Los Altos, California-based Box's first-quarter loss was $47.3 million or $0.40 per share, compared to last year's loss of $38.6 million or $2.81 per share.

Loss per share for the latest quarter reflected a higher share count.

Excluding one-time items, adjusted loss for the quarter was $33.2 million or $0.28 per share, compared to a loss of $31.8 million or $2.32 per share a year ago. On average, six analysts polled by Thomson Reuters estimated a loss of $0.31 per share for the quarter. Analysts' estimates typically exclude special items.

Box, which went public this January, said revenues for the quarter surged 45 percent to $65.6 million from $45.3 million a year ago. Analysts had a consensus revenue estimate of $63.7 million for the quarter.

"We are proud to have achieved revenue growth of 45 percent year over year, driven by our continued success moving up market and closing more enterprise deals," said Dylan Smith, co-founder and CFO of Box.

Looking forward to the second quarter, Box expects revenues of $69 million to $70 million. Analysts currently expect revenues of $67 million for the quarter.

For the full year 2016, the company now expect revenues of $286 million to $290 million, up from prior outlook of $281 million to $285 million. Analysts currently expect revenues of $283.4 million for 2016.

BOX closed Wednesday's trading at $17.79, up $0.87 or 5.14%, on the NYSE. The stock further gained 1.31 or 7.36%, in the after-hours trading.