What To Expect From Box’s (BOX) Q2 Earnings

Radek Strnad /
2023/08/28 6:26 am EDT

Cloud content storage and management platform Box (NYSE:BOX) will be reporting results tomorrow afternoon. Here's what you need to know.

Last quarter Box reported revenues of $251.9 million, up 5.65% year on year, beating analyst revenue expectations by 1.03%. While Box's revenue guidance for the full year was slightly lowered and missed analysts' expectations, it was due to FX; guidance for constant-currency revenue growth of 10% year on year was not lowered and was above expectations. Non-GAAP operating profit and adjusted EPS for the full year were better than expected. Overall, it was a decent quarter for the company.

Is Box buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Box's revenue to grow 6.21% year on year to $261.3 million, slowing down from the 14.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 per share.

Box Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Box's peers in the productivity software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Dropbox delivered top-line growth of 8.7% year on year, beating analyst estimates by 1.49%, and ServiceNow reported revenues up 22.7% year on year, exceeding estimates by 0.99%. Dropbox traded up 4.13% on the results, and ServiceNow was down 1.77%.

Read our full analysis of Dropbox's results here and ServiceNow's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 10.8% over the last month. Box is down 2.27% during the same time, and is heading into the earnings with analysts' average price target of $32.7, compared to share price of $30.5.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.