Box Jumps After Sales Forecast Tops Analysts' Estimatesby
Loss in fourth quarter was narrower than anticipated
File-sharing provider is adding customers, cutting costs
Box Inc. shares rose after forecasting sales that may top analysts’ estimates as the file-storage provider adds more customers and trims costs.
First-quarter revenue will be $88 million to $89 million, the company said in a statement Wednesday. That compares with analysts’ average projection for $86.4 million, according to data compiled by Bloomberg. For the fiscal fourth quarter, which ended Jan. 31, Box posted a smaller-than-estimated net loss on sales of $85 million, compared with the prediction for $81.7 million.
Box, whose services help businesses share and sync cloud-based files, said it added or expanded contracts with companies such as American International Group Inc. and Home Depot Inc. in the latest period. Box is pushing to win new customers and get existing ones to use Box in new ways. Billings, a measure of future revenue, were $130.2 million, well above an average analyst estimate of $107.6 million, according to a note from Morgan Stanley. Chief Executive Officer Aaron Levie is also trying to cut costs after a rapid expansion of Box’s sales and marketing operations.
Shares of the Los Altos, California-based company climbed as much as 15 percent Thursday to $14.40 before slipping to $13.61 at 9:51 a.m. in New York. Box first sold shares to the public in January 2015 for $14 a share.