Shares in Box Inc. fell slightly in late trading after the file-sharing company reported mixed results in its fiscal first quarter.
For the quarter ended April 30, Box reported a profit before costs such as stock compensation of 23 cents per share, compared with 18 cents in the same quarter of last year. Revenue rose 18% year-over-year, to $238.4 million. Analysts had been expecting an adjusted profit of 25 cents per share on revenue of $234.2 million.
As of the end of the quarter, remaining performance obligations had risen 16% from a year ago, to $1 billion, and billings for Box’s fiscal 2023 first quarter were $172.2 million, up 8%. Net cash in the quarter rose 14%, to $107.7 million, and free cash flow rose 20%, to $90.9 million.
Aaron Levie (pictured) told SiliconANGLE in an interview that the accelerating sales growth was the result of customers steadily buying more and more of the company’s stream of new features. “We’re giving customers dramatically more value,” he said. “Customers are absolutely investing more in the idea that these point solutions … are just not working.”
In particular, he said, the company’s top-tier Enterprise Plus plan drove revenue growth, and he plans to double down on getting more customers to step up. “It really will be about delivering the full value of the platform,” Levie said. “That’s what the whole company is focusing on.”
Highlights in Box’s quarter included landing new clients that included BBC Studios, Penguin Random House LLC, Polpharma Biologics, Signant Health and The Hospital for Sick Children.
Box also announced Box Canvas, a new virtual whiteboarding and visual collaboration experience due to launch later this year. It will provide Box customers with access to an unlimited number of canvases they can use to brainstorm ideas in real-time or at their own pace. Other team members are free to join at any time that’s convenient for them.
Box Canvas is similar to a virtual meeting environment, allowing users to work the way they want, expressing themselves with free-form drawings if they prefer, in addition to text. It also allows team members to present data in the form of diagrams, wireframes and process flows using visual elements such as shapes and connectors.
Looking forward, Box is predicting an adjusted profit of 27 to 28 cents per share on revenue of $244 million to $246 million in its next quarter. For the company’s full fiscal year, the outlook is for an adjusted profit of $1.11 to $1.15 a share on revenue of $992 million to $996 million, about what analysts expected.
Levie said he expects that neither the gradual cessation of the pandemic, which drove a lot of upside for companies such as Box that make remote work easier, nor the worsening economy will significantly affect Box.
“No matter what, remote and hybrid work are here to stay,” he said. “We believe we’ll be one of those platforms that will succeed in this environment. We’re building a durable business for the long term, so the short-term economic conditions aren’t a big factor.”
Asked if the dropping valuations of companies might make it easier for Box to make acquisitions, Levie said perhaps, but that’s not his main focus. “We’re really focused on our multiyear product roadmap,” he said. “Most of that will be executed through our own efforts.”
Box shares fell less than 3% after the bell.
With reporting by Robert Hof
Click here to join the free and open Startup Showcase event.
We really want to hear from you, and we’re looking forward to seeing you at the event and in theCUBE Club.
Click here to join the free and open Startup Showcase event.
iOS 16 may support always-on lock screen in iPhone 14 Pro models
Broadcom will tame the VMware beast
Terra 2.0 blockchain launch planned for Saturday in revival bid
Lawsuit charges Elon Musk manipulated Twitter stock during his takeover bid
How Informatica reinvented itself for the cloud
Vulnerabilities in Open Automation Software Platform opens the door to attackers
iOS 16 may support always-on lock screen in iPhone 14 Pro models
APPS - BY DUNCAN RILEY . 5 HOURS AGO
Broadcom will tame the VMware beast
CLOUD - BY DAVE VELLANTE . 2 DAYS AGO
Terra 2.0 blockchain launch planned for Saturday in revival bid
BLOCKCHAIN - BY KYT DOTSON . 3 DAYS AGO
Lawsuit charges Elon Musk manipulated Twitter stock during his takeover bid
POLICY - BY JAMES FARRELL . 3 DAYS AGO
How Informatica reinvented itself for the cloud
BIG DATA - BY GUEST AUTHOR . 3 DAYS AGO
Vulnerabilities in Open Automation Software Platform opens the door to attackers
SECURITY - BY DUNCAN RILEY . 3 DAYS AGO
Like Free Content? Subscribe to follow.