Box Inc(NYSE: BOX) stock lost over 18% on March 1st, 2018 (As of 10:45AM EST; Source: Google finance) hurt by lower than expected guidance.
The group reported that they would be adopting the ASC606 revenue recognition standard for their fiscal year 2019 using the modified retrospective transition method. So under 606 for the first quarter of fiscal 2019, the group expects a revenue in the range of $139 million to $140 million. Under 605 this would translate to $142 million to $143 million. Under both 606 and 605, they forecast non-GAAP EPS to be in the range of negative $0.09 to negative $0.08 and for GAAP EPS the group expects between negative $0.28 to negative $0.27 on over 139 million shares for the full year of fiscal 2019.
Meanwhile, in the fiscal year of 2018 the revenue rose 27% year-over-year to more than $0.5 billion. They group delivered their first full year of positive free cash flow marking a major improvement of more than $30 million over last year. The group is strengthening their cloud content management by adding new innovations like Box drive, Box relay and Box skills. For the fourth quarter, the group revenue rose 24% and billings rose 28% on a yoy basis. The group added major clients like Farmers’ Insurance, SunTrust Banks, Servia, Medtronic, and Dubai Airport, and continue to witness a solid international demand, particularly in Japan. The group has more than 82,000 total paying customers globally.
The group launched Box GxP validation which is a new add-on product targeted at life sciences companies and priced for the entire enterprise. Box GxP GxP has seen a great early traction with customers around the world and would help firms retire legacy ECM systems like documents and more. Apart from IBM, the group made a strategic partnerships including Microsoft, Fujitsu, and AT&T. More than half of their deals over $100,000 in Q4 were influenced by partners. The group surpassed $500 million in annual revenue this year but in FY19, they are aiming in reaccelerating revenue growth to scale to $1 billion in revenue and beyond.