Cloud storage firm Box has reported a widening loss despite revenue increases in its third quarter 2016 financials.
The company‘s revenue rose 38% year-over-year with billings growth of 37%, this brought revenue to $78.7 million while billings were at $89.4 million.
Despite this a non-GAAP operating loss in the third quarter was reported at $37.9 million, which equals 48% of the revenue. In 2015 this loss was $34.2 million, or 60% of revenue.
The loss has been attributed to an increased level of spending in marketing and research and development. A rise of 16% to $64 million in spending on sales and marketing was reported, with R&D spend at $26.3 million, more than double the previous quarter.
Box said that it has more than 41 million registered users. Although the majority don’t pay for the services, the company said that its base of paying customers grew by 4,000 since the last quarter to 54,000.
