What happened
Shares of cloud storage company Box (BOX 3.30%) took a hit on Wednesday, falling as much as 11.6% after the company reported its second-quarter results for fiscal 2019. Shares were down 8.8% as of 12:01 p.m. EDT.
The stock's pullback is likely because of Box's weaker-than-expected forecast for third-quarter revenue and a wider-than-expected outlook for its adjusted loss per share.
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So what
Box reported second-quarter revenue of $148 million, up 21% year over year. Its non-GAAP loss per share was $0.05, less than a loss of $0.11 in the year-ago quarter. Both metrics beat consensus analyst estimates for revenue of $146.5 million and a non-GAAP loss per share of $0.06.
But management's guidance for third-quarter revenue between $154 million and $155 million and a third-quarter non-GAAP loss per share between $0.08 and $0.07 fell short. On average, analysts expected third-quarter revenue of $155 million and a third-quarter loss per share of $0.06.
Now what
CFO Dylan Smith expressed confidence about the company's future in Box's second-quarter earnings release, noting, "Our proven ability to further capture our market opportunity while driving operational leverage positions us for long-term growth on our path to $1 billion [in annual revenue] and beyond."
It's important to note that Box lifted the lower end of its full-year revenue guidance range for fiscal 2019, putting it between $606 million and $608 million.
