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Box beats but leaves outlook unchanged, shares drop

Credit: REUTERS/Robert Galbraith

Box Inc, a cloud content management platform provider, reported better-than-expected quarterly revenue on Wednesday but shares fell 8% in extended trading, as investors were disappointed by the company's reiteration of its full-year earnings outlook.

Adds shares, analyst comment

Aug 28 (Reuters) - Box Inc BOX.N, a cloud content management platform provider, reported better-than-expected quarterly revenue on Wednesday but shares fell 8% in extended trading, as investors were disappointed by the company's reiteration of its full-year earnings outlook.

The company reaffirmed its full-year earnings per share outlook in the range of $0.00 to $0.02, while marginally raising the lower end of its sales forecast by $2 million to $690 million, but keeping the top end unchanged at $692 million.

"They are kind of essentially guiding everything in line with what the analysts were expecting, not beating in terms of forward numbers," D.A. Davidson analyst Rishi Jaluria said.

Box had cut its full-year sales forecast in June, citing longer sales cycles from larger deals.

Second-quarter revenue for the cloud storage and content management company rose 16.4% to $172.55 million, above analysts' expectation of $169.53 million, as it added more customers to its cloud management platform.

(Reporting by Ayanti Bera in Bengaluru; Editing by Shailesh Kuber)

((Ayanti.Bera@thomsonreuters.com; within U.S.+1 646 223 8780, outside U.S. +91 80 6749 0341;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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