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Box’s Shares Tumble 7% As Bookings Slow

June 1, 2016, 8:41 PM UTC
Aaron Levie, co-founder and chief executive officer at Box Inc.
Photograph by Bloomberg/Getty Images

(Reuters) – Cloud storage provider Box reported better-than-expected quarterly revenue and profit but a slowdown in billings growth pulled its shares down as much as 10% in extended trading.

Billings – revenue plus the change in deferred revenue in the period – rose 9% to $75.9 million in the first quarter, compared with a 59% rise in the preceding quarter. The company had reported a 58% jump in billings a year earlier.

Box offers an online content management platform to individuals and businesses such as General Electric Co and GlaxoSmithKline.

The company, which uses a “freemium” model, said its paying customer base rose to 62,000 at the end of first quarter, up from 57,000 at the end of the fourth quarter.

Box forecast second-quarter revenue of $94 million-$95 million and an adjusted loss of 19-20 cents per share.

The company’s net loss narrowed to $38.6 million, or 31 cents per share, in the quarter ended April 30, from $47.3 million, or 40 cents per share, a year earlier.

Excluding items, the company lost 18 cents per share. Analysts had estimated a loss of 24 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose to $90.2 million from $65.6 million, beating the average analyst estimate of $88.7 million.

The company’s shares (BOX) were down 7% at $11.89 in extended trading on Wednesday.