Cloud storage provider Box reported a smaller-than-expected quarterly loss as it added more customers, and forecast full-year revenue estimates above analysts’ estimates.
The company’s shares, which have fallen about 14 percent this year, rose 5 percent in extended trading.
Box ended its third quarter with more than 90,000 paying customers, up from 87,000 in the preceding quarter.
“From Medtronic to Coca-Cola to Eli Lilly, large enterprises are deciding to choose Box,” Chief Executive Officer Aaron Levie told Reuters.
“I think where we could have done better is in Europe, we still have seen some markets not all perform up to the level that we like,” he added.
For full year 2019, Box forecast an adjusted loss of between 15 cents and 16 cents per share and revenue between $608.2 million to $609.2 million.
Analysts, on average, were expecting a loss of 17 cents per share on revenue of $607.5, according to IBES data from Refinitiv.
The company, which also competes with Microsoft’s OneDrive and Google’s Drive, also forecast current quarter revenue between $163.5 million to $164.5 million and said it expects to post an adjusted profit between 2 cents to 3 cents per share.
Analysts were expecting the company to report a profit of 2 cents per share on revenue of $164.3 million.
“The important thing for the stock to work is to see evidence that underlying growth can accelerate next year,” said Rishi Jaluria, an analyst at DA Davidson & Co.
Excluding items, Box reported a loss of 6 cents per share in the third quarter, below the average analyst estimate of loss of 7 cents per share.
The company’s net loss narrowed to $40.2 million, or 28 cents per share, in the quarter ended Oct. 31, from $42.9 million, or 32 cents per share, a year earlier.
The Redwood City, California-based company’s revenue rose 20.6 percent to $155.9 million. Analysts were expecting revenue of $154.6 million.
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