By Katie Roof
Cloud storage company Box reported third quarter earnings after the bell on Wednesday, beating Wall Street expectations with a record $102.8 million in revenue, a 31% increase year-over-year and above predictions of $100.64 million. Adjusted earnings per share showed a loss of 14 cents, better than the negative 19 cents that analysts were forecasting and a 17 cent improvement from last year. The stock traded up 1% in initial after-hours trading and then fell flat.
The company also posted significant growth in deferred revenue, with $192.6 million, an increase of 36% from the same period last year. This is money that was received in advance of services. Billings were also up 26%, coming in at $112.4 million.
Box’s operating loss also narrowed to $37.8 million, down from $55 million year-over-year. Free cash flow came in at negative $10.9 million, compared to a loss of $37.8 million in last year’s period.
“With our track record of product innovation and continued momentum with new and existing customers, Box is uniquely positioned to help businesses modernize how they manage information and transform how they work,” said CEO Aaron Levie in a statement.
With a focus on enterprise, Box works with many Fortune 500 companies to help them secure their documents in the cloud. They’ve secured 60,000 corporate clients, including Gap, Procter & Gamble and Whirlpool.
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And learn how Zuora helps Box succeed in the Subscription Economy! In CEO Aaron Levie’s words – “There was a pre-Zuora Box and a post-Zuora Box. It was really painful before you guys came along.”