Box, Inc. (NYSE: BOX)
Box, Inc. (BOX), a cloud based mobile company yesterday reported their fiscal first quarter 2017 financial results. Box reported first quarter earnings of a loss of $0.18 per share which beat analyst expectations of a loss of $0.24 per share. Box reported first quarter revenues increased 37.5% year over year to $90.2 million which beat analyst expectations of $88.69 million.
Box, Inc. CEO and CFO Comments
“First quarter revenue was strong at $90 million, representing 37% growth year-over-year. We also continued to drive operational efficiency, with GAAP and non-GAAP EPS improving by 9 and 10 cents, respectively, year-over-year,” said Aaron Levie, co-founder and CEO of Box. “We won more than 5,000 new customers and added or expanded deployments with leading enterprises like Airbnb, Brooks Brothers and The Whirlpool Corporation. We also introduced Box Zones, achieved FedRAMP certification and launched strategic partnerships with Adobe, Cognizant and others, continuing to expand our addressable market.”
“In the first quarter, we achieved a marked improvement in cash flow from operations of negative $4.2 million and, excluding a payment related to a litigation settlement, would have achieved near breakeven cash flow from operations of negative $500,000,” said Dylan Smith, co-founder and CFO of Box. “We are confident in our growth opportunity, driven by our product differentiation and expanding market, and we remain committed to achieving positive free cash flow in the fourth quarter of this fiscal year.” Business Wire
BOX Technical Analysis
BOX opened trading yesterday at $12.55 which was down from the previous days trading of $12.56. BOX closed trading yesterday at $12.81 and crashed down after market to $11.77, equivalent to a 8% decrease from the closing price. Taking a look at the daily chart we can see that the last time BOX traded below this price level was on May 20th when it traded at $11.70. Taking a closer look at the daily chart we can see that BOX has been in a trading range in between $11.50 and $13.50 dating back to February 24th. BOX has a float of 42.39 million shares and traded at 3 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see BOX open trading on Thursday below $12.00 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Box, Inc. provides cloud-based mobile optimized enterprise content collaboration platform that enables organizations of various sizes to manage their enterprise content from anywhere. The companys platform enables users to collaborate on content internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security, and compliance features. Box, Inc. offers its solution in 22 languages. It serves healthcare and life sciences, financial services, legal services, media and entertainment, retail, education, energy, and government industries. The company was formerly known as Box.net, Inc. and changed its name to Box, Inc. in November 2011. Box, Inc. was founded in 2005 and is headquartered in Redwood City, California. Yahoo Finance