Box isn't losing as much money as expected, and builds customer base

Arron Levie CEO of Box

The company now has more than 90,000 paying customers worldwide

Box has revealed smaller than expected losses and managed to substantially grow its user base, despite rather bleak analyst estimates.

The company posted its quarterly results this week, revealing it now has more than 90,000 paying customers - up from 87,000 last quarter and this has had a significant impact on its profits.

The company posted revenues of $155.9 million for the quarter, up 21% year-on-year, with billings for the period at $155.6 million, an increase of 10% compared to the previous quarter. Nevertheless, Box posted a loss of $39.5 million, namely because if is still focussing on growth rather than consolidation, but its losses were less than the same quarter 12 months ago. 

“Our solution selling strategy continues to gain momentum with strong attach rates for add-on products and large deal growth in the third quarter,” Aaron Levie, co-founder and CEO of Box said.

“With more than 90,000 customers, including BBVA Compass, National Bank of Canada, and Shiseido Company, Box continues to expand its role as a strategic technology partner to power digital transformation for enterprises.”

He added that the cloud company is meeting business demand for a single, open platform for cloud content management, coupled with enterprise-grade security and “powerful workflow capabilities.”

Box is predicting its revenues for the full fiscal year will be between $608.2 million to $609.2 million, much higher than analyst predictions of $607.5 million.

“With more than 40% growth in deals worth more than $100K and our attach rate for add-on products increasing to over 80% of these deals, we are capturing our market opportunity while driving continued leverage for long-term growth,” Dylan Smith, co-founder and CFO of Box added.

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