Box delivered better-than-expected third quarter financial results Tuesday.
The enterprise cloud storage company reported a net loss of $2.6 million, or 3 cents per share. On a non-GAAP basis, Box delivered EPS of 20 cents on top of $196 million in revenue, up 11% year over year. Wall Street was expecting earnings of 14 cents per share with $194.2 million in revenue.
Box said Q3 billings were $185.5 million, up 8% year over year. Deferred revenue as of October 31 was $354.4 million, an increase of 9% from a year ago. Free cash flow in Q3 was $26.2 million.
Box highlighted its new and expanded deals in Q3 with a number of customers, including USAA, Murata Manufacturing and the U.S. Air Force.
“Our third quarter results demonstrate our ability to deliver strong profitable growth,” said Box CFO Dylan Smith. “Our focus on driving more efficient growth allowed us to significantly improve operating margins and cash flow in Q3. We now expect our non-GAAP operating margin for the full year to be at least 14 percent of revenue, a 1,300 basis point improvement from one percent a year ago.”
In terms of guidance, Box is forecasting Q4 revenue in the range of $196 million to $197 million with earnings per share between 16 and 18 cents. Analysts are expecting earnings of 15 cents per share with revenue of $198.75 million.
For the year Box expects revenue to be in the range of $768 million to $769 million with EPS ranging from 64 cents to 66 cents. Wall Street is expecting revenue of $768.9 million with earnings per share of 58 cents. Shares of Box were down more than 6% after hours.
