Box, Inc. BOX reported fiscal second-quarter 2021 earnings per share of 18 cents, which surpassed the Zacks Consensus Estimate by 5 cents. The company recorded earnings of $0.00 per share a year ago.
Total revenues came in at $192.3 million, surpassing the consensus mark by 1.5%. The top line increased 11% year over year and was above the guided range of $189-$190 million.
Following strong fiscal second-quarter results, the share price rose 8.8%.
The global shift to work from home due to the coronavirus crisis increased the demand for Box’s online collaboration tools.
Also, strong demand for its add-on products and high volume of large enterprise deals aided revenue growth during the quarter.
Box is currently working on enriching cloud content management and AI platforms. During the quarter, it partnered with Google Cloud in a bid to enhance the scale, performance and intelligence of its platform.
The company’s rich technology partner ecosystem will continue to be a strong driving force behind growth.
Let’s delve deeper into the numbers.
Box, Inc. Price, Consensus and EPS Surprise
Billings and Deferred Revenues
Billings were $188.8 million, up 9% year over year. Deferred revenues were $364.9 million, up 10% from the year-ago quarter.
Non-GAAP gross profit for the second quarter was $141.4 million, up 15% year over year.
Box’s operating expenses (general & administrative, sales & marketing, as well as research & development) of $144.5 million decreased 6.8% year over year.
On a non-GAAP basis, the company recorded operating income of $30.1 million versus operating income of $0.5 million a year ago. Operating margin was 16%, up 1,500 bps year over year.
Balance Sheet and Cash Flow
At the end of the quarter, cash and cash equivalents, and accounts receivables balance were $271.9 million and $123 million compared with $268 million and $99.1 million, respectively, at fiscal first quarter-end.
Net cash provided by operations was $32.3 million and free cash flow was $13.3 million in the fiscal second quarter.
For the third quarter of fiscal 2021, Box expects revenues between $193 million and $195 million. The Zacks Consensus Estimate for the same is pegged at $192.6 million. On a non-GAAP basis, the company projects earnings per share within 13-15 cents. The corresponding Zacks Consensus Estimate is pegged at 12 cents per share. GAAP loss per share is expected within 10-8 cents.
For fiscal 2021, Box’s revenue guidance is expected within $767-$770 million. The Zacks Consensus Estimate for the metric is pegged at $764.6 million. On a non-GAAP basis, it projects earnings per share in the range of 56-60 cents. The consensus mark for the same is pegged at 50 cents per share. GAAP loss per share is expected in the range of 39-35 cents.
Zacks Rank and Stocks to Consider
Currently, Box has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Stamps.com Inc. STMP, eBay Inc. EBAY and Atlassian Corp. TEAM. While Stamps.com and eBay sport a Zacks Rank #1 (Strong Buy), Atlassian carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Stamps.com, Atlassian Corp. and eBay is currently projected at 15%, 22.3% and 11.3%, respectively.
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