Box Shares Tumble On Slower Growth

Box shares fell more than 3% in after hours trading Wednesday after the company reported slower quarterly growth in revenue compared to a year prior.

The cloud content company turned in revenue of $122.9 million and a loss of 11 cents per share. Analysts on average had expected a loss of 13 cents and revenue of $121.7 million, according to Thomson Reuters I/B/E/S.

Despite beating expectations, Box saw its revenue growth slow. Revenue was up 28%, billings were up 31% and deferred revenue was up 32% year-to-year, but those figures were lower than the growth the company reported this time last year.

“There’s no question we can be driving pretty significant growth, and that’s the opportunity that lays ahead of us,” CEO Aaron Levie told Reuters on Wednesday.

Despite slower revenue, Levie highlighted Box’s top deals in the quarter, saying the company closed eight deals over $500,000 and four over $1 million. By comparison, Box closed just five deals worth more than $500,000 and one over $1 million in the same period last year. These included deals with Inc and Delta Global Services, he said.

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“We’re seeing a significant migration from large enterprises,” Levie said. “They’re starting to move to the cloud.”

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