Box reported its second quarter fiscal 2017 earnings after the bell on Wednesday. The company beat estimates posting a loss of 14 cents, compared to the 19 cents expected by analysts. They also surpassed revenue predictions, reporting $95.7 million instead of $94.65 million. Shares ticked up about 5% in initial after-hours trading.
“Our strong second quarter results, with revenue growth of 30 percent and billings growth of 34 percent year-over-year, reflect our clear differentiation as the leading enterprise content platform,” said Aaron Levie, co-founder and CEO of Box, in a statement. “Our excellent sales execution and traction with new products drove deals with 4,000 new customers and expanded deployments with leaders such as Pfizer, Electronic Arts and Uber.”
But it is a competitive landscape for cloud storage, with Dropbox, Egnyte and others competing to store documents online. Box has tried to carve out an edge in the enterprise space, securing many Fortune 500 companies as clients.
Investors have been critical of Box for spending too much on sales and marketing relative to its customer acquisition, but the company has been working to bring down those ratios.
The company has a market cap of about $1.74 billion.