Box Inc (NYSE: BOX) stock rose over 2.3% on 28th May, 2020 (as of 11:26 am GMT-4; Source: Google finance) after the company posted better than expected results for the first quarter of FY 21 boosted by enterprise customers looking for secure remote work services to keep their operations up and running during the COVID-19 pandemic. Box has reported a narrowing loss to $25.6 million compared to a loss of $36.8 million, in the year-ago quarter. The company has reported first-quarter billings of $128.1 million, which represents an increase of 8% from a year ago. Deferred revenue came to $368.3 million, which is up 11%. The company also reported free cash flow in the first quarter of $39.8 million. The company has ended Q1 with RPO at $722.7 million, up 13% year-over-year. The company expects to recognize approximately 65% of this RPO over the next 12 months. The company has ended the quarter with $268.4 million in cash, cash equivalents and restricted cash
BOX in the first quarter of FY 21 has reported the adjusted earnings per share of 10 cents, beating the analysts’ estimates for the adjusted earnings per share of 5 cents, according to analysts surveyed by FactSet. The company had reported the adjusted revenue growth of 13 percent to $183.6 million in the first quarter of FY 21, beating the analysts’ estimates for revenue of $182 million. Non-GAAP gross margin came in at 73.1% versus 72.3% a year ago and an improvement from our Q4 gross margin of 71.5%.
Moreover, the company has delivered wins and expansions with thousands of customers in Q1, including the City of Berkeley, FLIR, NASA, National Bank of Canada, Toyota Financial Corporation, USDA and many more. The company has closed 40 deals greater than over $100,000 compared to $33,000 a year ago, and nearly 80% of the $100,000 plus deals included at least one add-on product.
Box expects fiscal-year revenue to be in the range of $760 million and $768 million while FactSet analysts are projecting $761 million. For FY ’21, the company now expects the non-GAAP operating margin to be 11% to 12% of revenue, which reflects an improvement from the 9% to 10% range.
For the second quarter, Box expects a profit to be in the range of 12 to 14 cents per share on revenue expected to be in the range of $189 million to $190 million. Wall Street is expecting a profit to be of 8 cents per share on revenue to be of $188.19 million.