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Box surpassed Wall Street's earnings expectations

Published 05/03/2024, 21:22
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BOX
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REDWOOD CITY, Calif. - Box, Inc. (NYSE:BOX), a leader in cloud content management, reported its fourth quarter financial results, managing to slightly surpass Wall Street's earnings expectations.

For the fourth quarter, Box reported adjusted earnings per share (EPS) of $0.42, which was $0.04 higher than the analyst consensus of $0.38. The company's revenue reached $263 million, closely aligning with the consensus estimate of $263.28 million, marking a 2% increase from the fourth quarter of the previous fiscal year.

Looking ahead, Box's guidance for the first quarter of fiscal year 2025 anticipates an adjusted EPS range of $0.35 to $0.36, falling below the analyst consensus of $0.38. Revenue projections for the same period are set between $261 million and $263 million, which meets the lower end of the consensus estimate of $261 million.

For the full fiscal year 2025, Box expects an adjusted EPS between $1.53 and $1.57, which is notably lower than the consensus estimate of $1.70. The company's revenue forecast for the year is between $1.08 billion and $1.085 billion, again falling short of the analyst consensus of $1.088 billion.

Box's CEO, Aaron Levie, commented on the company's strategic position, "With advancements in AI, companies are accelerating their adoption of the cloud and transforming how they work with their content. Box is at the center of some of the most important trends in technology history as companies look to digitize and automate their businesses, accelerate innovation with the power of AI and protect their most important data."

CFO Dylan Smith highlighted the company's financial achievements despite economic pressures, stating, "In fiscal 2024 we surpassed a billion dollars in annual revenue and significantly expanded our operating margin. Despite the macroeconomic pressures on IT budgets that persisted throughout FY24, our operating discipline and efficient cost structure enable us to continue to make meaningful investments in our sales and marketing programs and product roadmap as we deliver the leading Content Cloud for the enterprise."

The company also announced a new $100 million expansion of its stock repurchase program, reflecting confidence in its long-term growth prospects.

Investors reacted to the mixed financial update and cautious outlook, with Box's stock experiencing a slight decline in after-hours trading. The company's focus on AI integration and strategic investments in its platform, however, suggest an ongoing commitment to innovation and market leadership in the content cloud space.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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