Box shares fell 6 percent after reporting profits in the second quarter of fiscal 2019 and offering a mildly weak third-quarter forecast.
Box has its forecast for the full 2019 fiscal year. It now expects a loss of 18 cents to 16 cents per share, excluding certain items, at $ 606 to $ 608 million in revenue. This is in line with the expectations of Thompson Reuters analysts, who, with $ 606.5 million in revenue (excluding specific items), are earning 18 cents per share.
Over the past few quarters, Box has focused on increasing revenue, which it has generated for its customers. Executives have recently stated that they are targeting $ 1 billion in revenue in the second half of their fiscal year of 2021. In a teleconference with analysts Tuesday, Box Chief Financial Officer Dylan Smith said executives do not want to identify a specific quarter if the company crosses that threshold. But Smith said executives "continue to strive to exceed $ 1 billion in revenue for the full fiscal year of 2022."
The boxing stock continued after these remarks.
Levie continued to comment on the goals of the call and emphasized this The company will not say when it will reach the $ 1 billion run rate.
"What we really do not do is just indicate the quarter in which we want to pass that," Levie said. "Certainly in the second half, that's quite possible." What we're trying to do is avoid focusing too much on the specific quarter in which we're crossing that threshold, obviously things like the seasonality and deals, puts and takes, in what the As far as solution sales and add-on products are concerned, we are moving away from the specific quarter in which we are talking about the growth rate. "
Analysts have focused on the growth expected in the next few years
" Although As recent launch initiatives in recent years are likely to lead to improved sales per customer trend, we believe that concern for Box's ability to achieve this goal remains an overhang on equities, "said Raymond James, led by Brian Peterson in a montagnote.
Changes to the compensation plans of vendors intended to promote larger deals have their desired effect, Rosenblatt Securities & # 39; Marshall Senk wrote in a Friday note. There are also more deals with multiple products in the box pipeline, Senk wrote.
"It's still early, because of the time it takes to penetrate the entire sales organization, so we still see some segments. In business, you have to make up for this transformation a bit, but we see a big growth in … the number of big deals, which is a really key metric of this transformation, "Levie told CNBC. Two-thirds of transactions worth more than $ 100,000 in the quarter included new boxing products, Levie said.
The company now has more than 87,000 business customers, from more than 85,000 to a quarter.
Boxing camp is up 27 percent since the beginning of the year.
– CNBC's Josh Lipton contributed to this report.