Box Inc. shares plunged -20% Thursday, after the company released full-year earnings guidance lower than analysts’ expectations.
The cloud services company has forecasted its bottom-line to range between a loss of 3 cents per share to positive earnings of 1 cent per share for FY 2020. In comparison, analysts were expecting earnings of 3 cents per share. Revenue guidance for the year is between $700 and $704 million - a range which is lower than analysts’ estimates of $732.8 million.
For the just-concluded fiscal fourth quarter 2019, Box reported adjusted earnings of 6 cents per share, beating analysts' estimates of 2 cents per share. Revenue for the quarter came in at $163.7 million, which is below analysts’ expected $164.2 million. The company’s billings increased +16% year-over-year to $237.7 million
According to Aaron Levie, co-founder and CEO of Box, the company saw strength in add-on product attach rates and delivered solid growth in six-figure deals in fiscal 2019. "While our Q4 billings results were below our expectations -- driven by underperformance in EMEA and longer sales cycles for some seven-figure deals -- we are encouraged by overall customer momentum and demand for cloud content management", Levie said in a press release.