Box revenues grow 26%, despite shareholder worry

The company is hoping to hit $506 million in revenues next year

Box's third quarter financial results show revenue increases of 26%, reaching $129.3 million (96 million), which marginally beat industry estimates of $128.64 million (95 million).

Overall, its losses were higher than the same quarter of 2016 as it invested more money in marketing to compete with other cloud storage services such as Dropbox.

This led to the company's shares dropping by 8.5% as investors expressed concerns it would lose its cash flow positive status. However, values started to rise again shortly after the decrease.

On a more positive note, its user base grew to 80,000 businesses, including some high profile firms such as LionsGate, Nuclear Regulatory Commission and the US Food and Drug Administration.

Next year, the company wants to put more focus on innovation following the successful launch of Box Skills, Box using Azure and Box Relay, Box's co-founder and CEO Aaron Levie said in response to the results.

"In Q3, we continued to extend our lead in cloud content management by innovating on our core products and by unveiling new capabilities like Box Skills and Box Graph that will help enterprises bring AI and machine learning to their content in Box," he said.

"By making Box the most intelligent and secure cloud content management platform, we are becoming more and more critical to powering our customers as they modernize their businesses and drive digital transformation."

However, to reach Box's goal of $506 million (374 million) in revenues next year, this will also come with some cost-cutting, the company's co-founder and CFO, Dylan Smith added.

"We are driving operational efficiencies across our business as evidenced by a year-over-year improvement of $21 million in our cash flow from operations to $14 million," he explained, "With our ability to balance innovation, growth and profitability, we are well-positioned to achieve our $1 billion revenue target in the coming years."

Featured Resources

Managing security risk and compliance in a challenging landscape

How key technology partners grow with your organisation

Download now

Security best practices for PostgreSQL

Securing data with PostgreSQL

Download now

Transform your MSP business into a money-making machine

Benefits and challenges of a recurring revenue model

Download now

The care and feeding of cloud

How to support cloud infrastructure post-migration

Watch now

Recommended

Google adds new compliance and security certifications for Google Cloud
compliance

Google adds new compliance and security certifications for Google Cloud

9 Apr 2021
IBM’s public cloud for banking is now generally available
public cloud

IBM’s public cloud for banking is now generally available

7 Apr 2021
IBM targets hybrid cloud environments with expanded Security Services for Cloud
hybrid cloud

IBM targets hybrid cloud environments with expanded Security Services for Cloud

24 Mar 2021
Transform your MSP business into a money-making machine
Whitepaper

Transform your MSP business into a money-making machine

24 Mar 2021

Most Popular

Microsoft is submerging servers in boiling liquid to prevent Teams outages
data centres

Microsoft is submerging servers in boiling liquid to prevent Teams outages

7 Apr 2021
Hackers are using fake messages to break into WhatsApp accounts
instant messaging (IM)

Hackers are using fake messages to break into WhatsApp accounts

8 Apr 2021
Alienware’s new gaming laptop is a kick in the teeth for Intel’s new CEO
Hardware

Alienware’s new gaming laptop is a kick in the teeth for Intel’s new CEO

8 Apr 2021