Box shares jump on better-than-expected results, strong forecasts

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Box Inc. on Wednesday became the latest tech company to benefit from a digital transformation accelerated by the pandemic. Shares of the enterprise software company surged in after-hours trading after second-quarter full-year results topped Wall Street estimates and strong sales expectations.
After initially jumping over 14% in extended trading, Box shares were up 7.6%.

Box box,
+ 6,98%
reported a loss of $ 7.65 million, or 5 cents per share, compared to a loss of $ 36.2 million, or 25 cents per share, in the last year’s quarter. Adjusted earnings were 18 cents per share, compared to 0 cents per share in the last year quarter. Revenue improved 11% to $ 192.3 million from $ 172.5 million a year ago.
“We are obviously very pleased with a dramatic improvement in profitability and operating profits, given a very dynamic and complex situation. [financial and health] climate, ”Box CEO Aaron Levie told MarketWatch in a phone call after the results were announced. “But we need to stay focused on the laser for the second half of the year, especially with our corporate suites.”

Analysts polled by FactSet are forecasting net earnings of 12 cents per share on sales of $ 189.6 million.
The company, which provides cloud-based solutions, plans to continue to benefit from a sharp increase in the number of users working from home: it raised its revenue forecast for the full year to a range of 767 million. $ and $ 770 million, from $ 760 million to $ 768 million. The request reflected a 9% increase in billings in the second quarter, to $ 188.8 million.
Box shares are up 15% this year. The larger SPX index of the S&P 500,
+ 1,02%
is up 7.7% in 2020.
Box results arrive a day after Salesforce.com Inc. CR,
+ 0,06%
announced record quarterly results of $ 5 billion as more companies digitally connect with their customers during the pandemic. Earlier on Wednesday, Box shares closed up 7% in regular trading on a big day for tech stocks.
Learn More: Salesforce Inventory Grows More Than 25% For Best Day Ever in “Explosive” Quarter

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