A month has gone by since the last earnings report for Box (BOX). Shares have added about 1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Box due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Box Q1 Loss Narrower Than Expected, Revenues Beat
Box, Inc.’s fiscal first-quarter 2020 adjusted loss was 3 cents per share, narrower than the Zacks Consensus Estimate of a loss of 5 cents.
Total revenues came in at $163 million, surpassing the consensus mark of $162 million. The top line increased 16% year over year and was above the guided range of $161-$162 million.
Box is currently working on enriching cloud content management and AI platforms. It has made some notable partnerships with Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT).
The company’s rich technology partner ecosystem will continue to be a strong driving force behind growth.
Let’s delve deeper into the numbers.
Billings and Deferred Revenues
Billings were $118.4 million, up 1% year over year. Deferred revenues were $330.4 million, up 15% from the year-ago quarter.
Operating Results
Box’s operating expenses (general & administrative, sales & marketing, as well as research & development) of $149.7 million increased 9% year over year.
On a non-GAAP basis, the company recorded operating loss of $3 million compared with a loss of $9.2 million a year ago. Operating margin was (2%) versus (7%) in the year-ago quarter.
Balance Sheet and Cash Flow
At the end of the quarter, cash and cash equivalents, and accounts receivables balance were $231.4 million and $93.7 million compared with $217.5 million and $175.1 million, respectively, at the end of the fiscal fourth quarter.
During the quarter, cash provided by operations was $25.5 million and free cash flow amounted to $13.4 million.
Guidance
For the second quarter of fiscal 2020, Box expects revenues between $169 million and $170 million. On a non-GAAP basis, the company projects loss per share in the range of 2-1 cents. GAAP loss per share is expected within 29-28 cents.
For fiscal 2020, Box expects revenues between $688 million and $692 million. On a non-GAAP basis, it projects earnings per share in the range of $0.00 to 2 cents. GAAP loss per share is expected within $1.05-$1.03.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Box has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Box has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Box, Inc. (BOX): Free Stock Analysis Report
Original post
Zacks Investment Research