Billion Dollar Unicorns: Box Continues To Grow, But Profits Still Absent

According to a report published earlier this year, the global cloud storage market is estimated to grow from $30.70 billion in 2017 to $88.91 billion by 2022, translating to an annual growth rate of 23.7% over the five year period. The robust industry growth is translating into stellar performance by Billion Dollar Unicorn players like Box (NYSE: BOX).

Box’s Financials

Box’s first quarter revenues grew 20% over the year to $140.5 million, ahead of the market’s expectations of $139.7 million. Adjusted earnings for the quarter came in at a loss of $0.07 per share, better than the $0.08 loss per share anticipated by the market. Its billings grew to $116.7 million, better than the Wall Street estimate of $113.1 million. The company added nearly 3,000 paying customers during the quarter, including names like Dubai Airports and Komatsu. At the end of the quarter, Box had nearly 85,000 paying customers.

Despite the stellar performance, the market was not too pleased as it is worrying about slowing growth rates. A year ago, Box had delivered 27% in revenue growth.

For the current quarter, Box forecast revenues of $146-$147 million, and a net loss of $0.06-$0.05 per share. The Street had forecast revenues of $146.1 million and a loss of $0.07 per share. Box expects to end the year with revenues of $603-$608 million and non-GAAP earnings per share of ($0.19)-($0.16). The Street is looking for revenues of $606.4 million with a non-GAAP loss of $0.18 per share.

Box’s Product Enhancement

To drive growth, Box is focused on two key objectives – innovating in cloud content management and advancing its global go-to-market efforts to reach more enterprises around the world. Within product innovation, it made the Box Drive product generally available in the quarter. Box Drive offers a simple way to stream all files in Box right to the desktop, thus eliminating the need for legacy on-premises network file shares. It also initiated the beta for its new Google Suite integration and the general availability of the new integration with Apple’s productivity suite iWork.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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