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This Is Why Shares of Box Are Climbing Today

March 10, 2016, 3:58 PM UTC
Box Inc. CEO Aaron Levie Interview
Aaron Levie, co-founder and chief executive officer of Box Inc., sits for a photograph after a television interview in San Francisco California, U.S., on Wednesday, March 28, 2012. Box Inc. will offer corporate clients access to applications on remote servers via Apple Inc.'s mobile devices, challenging software makers such as Oracle Corp. and International Business Machines Corp, (IBM). Photographer: David Paul Morris/Bloomberg via Getty Images
Photograph by David Paul Morris — Bloomberg via Getty Images

Shares of software company Box (BOX) climbed Thursday, following robust first-quarter earnings with strong sales growth and reports of several major new deals.

Fortune reported Wednesday that the Redwood City, Calif.-based company posted a first-quarter loss of 26 cents per share on revenue of $85 million, beating the analyst consensus of 29 cents a share on $82 million in revenue.

Although Box reported a loss, it posted stellar sales growth of 36% in the quarter, compared with the $62.6 million a year ago.

That sales growth was heavily driven by partnerships with tech titans Microsoft (MSFT) and IBM (IBM), which allowed cloud-storage service to expand both internationally and into the veteran companies’ client bases.

Box also reported a smattering of major new deals with companies including Bain Capital, Campbell Soup, and Genetech.

 

But the file-sharing service still has a lot of ground to cover if it hopes to regain its peak share price of $23.15 from roughly a year ago. The stock is trading below its IPO price of $14 a share.

Box CEO Aaron Levie seems a bit less concerned about the difference right now. The company has a “pretty long-term perspective around the stock price,” Levie told Fortune’s Jonathan Vanian Wednesday. “We think there is a tremendous amount of upside.”

Levie added that Box is a $340 million company entering a $40 billion industry.