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Box Earnings Q1 2019: $141 Million in Revenue, Up 20% Year Over Year

Box, the business software company led by Aaron Levie, reported its fiscal first quarter earnings on Wednesday, posting revenues of $140.5 million—a record—and cash flow from operations of $18 million.

Its quarterly revenue was up 20% year over year.

The company also reported billings of $116.7 million, up 17% year over year, and free cash flow of $7.3 million.

“We drove strong attach rates for new products, expanded our international customer base, and delivered product innovation and security for some of the largest and most regulated enterprises in the world,” Levie said in a statement. “Our focus on security and collaboration, as well as our vision for artificial intelligence, continues to resonate.”

The company is working to drive higher product “attach rates,” business jargon for sales of secondary products after sales of primary products, and expand its penetration among very large corporations, according to CFO Dylan Smith.

The company is still unprofitable on a GAAP basis. In Q1, Box recorded a net loss per share (basic and diluted) of $0.26 and an operating loss of $35.9 million.

Nonetheless, Box now serves more than 85,000 organizations. It highlighted new or expanded relationships with the City of Philadelphia; DARPA, the Pentagon’s research arm; Hitachi; and Mitsubishi Motors.

In terms of outlook for Q2, Box expects revenue between $146 million and $147 million and earnings per share between $0.27 and $0.28 on a GAAP basis. For the full fiscal year 2019, it predicts revenue between $603 million and $608 million and earnings per share between $1.04 and $1.07 on a GAAP basis.

Box shares dropped 3% to $26.55 in after-hours trading.