Momentum Stock: Box, Inc (NYSE:BOX)

Box, Inc. (NYSE:BOX) reported earnings for the three months ended April 2016 on June 01, 2016. The company earned $-0.18 per share on revenue of $90.15M. Analysts had been modeling earning per share of $-0.24 with $88.65M in revenue.

Box, Inc. (NYSE:BOX) announced financial results for the first quarter of fiscal 2017, which ended April 30, 2016.

“In the first quarter, we achieved a marked improvement in cash flow from operations of negative $4.2 million and, excluding a payment related to a litigation settlement, would have achieved near breakeven cash flow from operations of negative $500,000,” said Dylan Smith, co-founder and CFO of Box. “We are confident in our growth opportunity, driven by our product differentiation and expanding market, and we remain committed to achieving positive free cash flow in the fourth quarter of this fiscal year.”

Fiscal First Quarter Financial Highlights

  • Revenue for the first quarter of fiscal 2017 was a record $90.2 million, an increase of 37% from the first quarter of fiscal 2016.
  • Deferred revenue for the first quarter of fiscal 2017 ended at $172.2 million, an increase of 39% from the first quarter of fiscal 2016.
  • Billings in the first quarter of fiscal 2017 were $75.9 million, an increase of 9% from the first quarter of fiscal 2016. As previously announced, billings were impacted by increasing seasonality in the business and the focus on annual payment durations from multi-year prepayments, beginning this fiscal year.
  • GAAP operating loss in the first quarter of fiscal 2017 was $38.6 million, or 43% of revenue. This compares to GAAP operating loss of $46.6 million, or 71% of revenue, in the first quarter of fiscal 2016. Non-GAAP operating loss in the first quarter of fiscal 2017 was $22.7 million, or 25% of revenue. This compares to non-GAAP operating loss of $32.6 million, or 50% of revenue, in the first quarter of fiscal 2016.
  • GAAP net loss per share, basic and diluted, in the first quarter of fiscal 2017 was $0.31 on 124.9 million shares outstanding, compared to $0.40 in the first quarter of fiscal 2016 on 119.4 million shares outstanding. Non-GAAP net loss per share, basic and diluted, in the first quarter of fiscal 2017 was $0.18, compared to $0.28 in the first quarter of fiscal 2016.
  • Net cash used in operating activities in the first quarter of fiscal 2017 totaled $4.2 million, and excluding the $3.8 million payment related to the settlement of the previously announced Open Text litigation, net cash used in operating activities would have been $0.5 million. In the first quarter of fiscal 2016, net cash used in operating activities was $32.2 million, and excluding $25.0 million in restricted cash used to secure a line of credit for the newly leased Redwood City headquarters, net cash used in operating activities would have been $7.2 million.

Box, Inc. earnings per share showed a decreasing trend of -10.1% for the current fiscal year. The company’s expected EPS decline rate for next fiscal year is -48%.Analysts project EPS growth over the next 5 years at 73.9%. It has EPS annual decline over the past 5 fiscal years of 0% when sales declined 0. It reported 37.5% sales growth, and 22% EPS growth in the last quarter.

The stock is trading at $11.45, up 29.82% from 52-week low of $8.82. The stock trades down -42.55% from its peak of $19.93 and 51.79% above the consensus price target of $17.38. Its volume clocked up at 1.16 million shares which is higher than the average volume of 0.89 million shares. Its market capitalization currently stands at $1.40B.

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