Click For Photo: https://techcrunch.com/wp-content/uploads/2017/10/gettyimages-860286744.jpg?w=600
By most common sense measurements, Box had a pretty good earnings report today, reporting revenue up 20 percent year over year to $163.7 million. That doesn’t sound bad, yet Wall Street was not happy with the stock getting whacked, down more than 22 percent after hours as we went to press. It appears investors were unhappy with the company’s guidance.
Part of the problem says Alan Pelz-Sharpe principle analyst at Deep Analysis, a firm that watches the content management space, is that the company failed to hit its projections, but he points out the future does look bright for the company.
Box - Estimates - Today - Picture - Growth
“Box did miss its estimates and got dinged pretty hard today, however the bigger picture is still of solid growth. As Box moves more and more into the enterprise space, the deal cycle takes longer to close and I think that has played a large part in this shift. The onus is on Box to close those bigger deals over the next couple of quarters, but if it does then that will be a real warning shot to the legacy enterprise vendors as Box starts taking a chunk out of their addressable market,” Pelz-Sharpe told TechCrunch.
This fits with what company CEO Aaron Levie was saying. “Wall Street did have higher expectations with our revenue guidance for next year, and I think that’s totally fair, but we’re very focused as a company right now on driving...
Wake Up To Breaking News!