BOX INC (BOX) saw its loss narrow to $38.23 million, or $0.30 a share for the quarter ended Oct. 31, 2016. In the previous year period, the company reported a loss of $55.12 million, or $0.45 a share. On the other hand, adjusted net loss for the quarter narrowed to $17.77 million, or $0.14 a share from a loss of $37.94 million or $0.31 a share, a year ago. Revenue during the quarter surged 30.72 percent to $102.81 million from $78.65 million in the previous year period. Gross margin for the quarter expanded 367 basis points over the previous year period to 73.63 percent. Operating margin for the quarter stood at negative 36.72 percent as compared to a negative 69.97 percent for the previous year period.
Operating loss for the quarter was $37.75 million, compared with an operating loss of $55.03 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $17.29 million compared to operating loss of $37.86 million in prior year period.
"In the third quarter, we delivered record revenue of $102.8 million, up 31% year-over-year, and continued to improve operational efficiencies throughout the business," said Aaron Levie, co-founder and chief executive officer of Box. "We reached a significant milestone with our first $100 million quarter. We also hosted our most successful BoxWorks to date and announced a new strategic partnership with Google. With our track record of product innovation and continued momentum with new and existing customers, Box is uniquely positioned to help businesses modernize how they manage information and transform how they work."
For the fourth-quarter, BOX INC expects revenue to be in the range of $108 million to $109 million. BOX INC expects revenue to be in the range of $397 million to $398 million for financial year 2016. The company projects diluted loss per share to be in the range of $0.33 to $0.32 for the fourth-quarter. For financial year 2016, the company projects diluted loss per share to be in the range of $1.24 to $1.23. On an adjusted basis, the company projects diluted loss per share to be in the range of $0.14 to $0.13 for the fourth-quarter. For financial year 2016, the company projects diluted loss per share to be in the range of $0.60 to $0.59 on adjusted basis.
Operating cash flow remains negative
BOX INC has spent $15.94 million cash to meet operating activities during the nine month period as against cash outgo of $71.19 million in the last year period. The company has spent $6.26 million cash to meet investing activities during the nine month period as against cash outgo of $73.58 million in the last year period.
Cash flow from financing activities was $4.20 million for the nine month period, up 4.09 percent or $0.17 million, when compared with the last year period.
Cash and cash equivalents stood at $167.80 million as on Oct. 31, 2016, down 11.54 percent or $21.89 million from $189.70 million on Oct. 31, 2015.
Working capital drops significantly
BOX INC has witnessed a decline in the working capital over the last year. It stood at $37.01 million as at Oct. 31, 2016, down 62.52 percent or $61.72 million from $98.72 million on Oct. 31, 2015. Current ratio was at 1.15 as on Oct. 31, 2016, down from 1.47 on Oct. 31, 2015.
Days sales outstanding went down to 24 days for the quarter compared with 69 days for the same period last year.
At the same time, days payable outstanding went down to 56 days for the quarter from 101 for the same period last year.
Debt increases substantially
BOX INC has witnessed an increase in total debt over the last one year. It stood at $65.48 million as on Oct. 31, 2016, up 37.58 percent or $17.89 million from $47.59 million on Oct. 31, 2015. Total debt was 14.77 percent of total assets as on Oct. 31, 2016, compared with 9.91 percent on Oct. 31, 2015. Debt to equity ratio was at 0.74 as on Oct. 31, 2016, up from 0.28 as on Oct. 31, 2015.
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