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September 1, 2016

Box moves closer to profitability with Q2 results

News: Revenue continues to grow.

By James Nunns

Online file sharing and content management outfit Box took a step closer to becoming a profitable company according to its Q2 2017 financial results.

Revenue in Q2 stood at $95.7 million, up 30% year-over-year, while billings increased by 34% year-over-year to hit $106.5m.

However, it is the progress towards profitability that should make Box CEO Aaron Levie the happiest.

The company reported that cash flow from operations in the quarter was negative $5 million, a 77% improvement from negative $22m in Q2 of last year.

Off the back of the strong quarterly results the company raised full year 2017 guidance to between $394m to $396m up from between $391m to $395m.

"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.

The results were boosted by the addition of over 4,000 paying new customers, and the addition and expanded deployments with enterprises such as Pfizer, Autodesk, Electronic Arts, the Federal Communications Commission, Western Union, Uber, and more.

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The good news for the company is that it appears to be more successful at transitioning customers from free accounts to premium paying accounts. The paying customer base now stands at 66,000 businesses.

Partly this success has been boosted by business friendly additions to its portfolio with services such as Box Zones, which aims to provide choice over where data is being stored. Box Shuttle allows organisations to easily migrate large amounts of content into the Box platform. Legal Holds allows organisations to put a hold on content stored with the company to allow for defensible discovery on all Box content.

As well as these additions to the Box portfolio it also now complies with ISO 27018, the standard for protecting personally identifiable information in the cloud. All of which are business friendly additions that have helped to make it a more attractive choice.

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