Box released the earnings results from its third quarter of fiscal 2016 after closing bell tonight, posting adjusted losses of 31 cents per share and $78.7 million in revenues, a 38% increase year over year. Analysts had been expecting losses of 31 cents per share and $76.76 million in revenue. Tonight’s earnings report marks the cloud storage firm’s fourth as a public company. In last year’s third quarter, Box reported revenue of $57 million.
Box’s losses improve
Reported losses were 45 cents per share compared to last year’s $3.40 per share. Box grew its billings 37% to $89.4 million, a new record. Net cash used during the quarter fell to $17.3 million from $21.7 million in the previous quarter and $19.6 million in last year’s third quarter. Box had $244 million in cash, cash equivalents, marketable securities and restricted cash at the end of the quarter, with $29.1 million of that cash being restricted.
The cloud storage company said it added more than 4,000 new customers during the quarter and either added or “significantly expanded” its business to major customers like Sally Beauty, Southwest Airlines, Amgen and Nest Labs. Box’s total paying customer base climbed to 54,000 businesses, and 55% of the Fortune 500 pays to subscribe to Box. The number of registered users surpassed 41 million during the quarter.
The company also launched new integrations with IBM, partnered with Microsoft, and unveiled support for Amazon Web Services Key Management Services during the quarter.
Box’s guidance beats expectations
For the fourth quarter of fiscal 2016, Box management expects revenue to be between $81 million and $82 million, which is ahead of the consensus estimate of $80.82 million. Box projects a non-GAAP operating margin of between -43% and -44%.
The company expects revenue to be between $299 million and $300 million for the full fiscal year 2016, again beating the consensus at $296.71 million. That guide is also an increase from the previous range of $295 to $297 million for the full year. Management also raised their guidance for noon-GAAP operating margin for the full year to about -46% from their previous projection of between -47% and -49%.
Box aims to achieve positive free cash flow in the fourth quarter of fiscal 2017.
Shares of Box dipped by as much as 1.13% to $14 per share in after-hours trades following tonight’s earnings results.