What happened

Shares of Box (BOX 2.99%) have gotten crushed today, down by 7% as of 11:45 a.m. EDT, after the company reported fiscal first-quarter earnings results. The cloud storage provider cut its fiscal 2020 sales forecast, overshadowing the revenue beat.

So what

Revenue in the fiscal first quarter increased 16% to $163 million, topping the consensus estimate of $161.5 million. That all translated into a non-GAAP net loss per share of $0.03, also better than the $0.05 per share in adjusted net losses that analysts were modeling for. Billings were $118.4 million, and deferred revenue increased to $330.4 million.

Person uploading to cloud storage from their smartphone, with a laptop in the background

Image source: Getty Images.

"In the first quarter, we drove record add-on product attach rates of more than 90% across our six-figure deals. Customers are increasingly adopting Box as a platform for secure content management, workflow, and collaboration," CEO Aaron Levie said in a statement. "While we are encouraged by the demand for these larger, more strategic deployments, these deals often have longer sales cycles, which is reflected in our updated guidance."

Now what

Speaking of guidance, revenue in the fiscal second quarter should be $169 million to $170 million, with an adjusted loss of $0.01 to $0.02 per share. More importantly, Box cut its full-year forecast. Fiscal 2020 revenue should be in the range of $688 million to $692 million, down from the prior forecast of $700 million to $704 million issued at the end of February. The market was expecting $701.9 million in revenue for fiscal 2020. Non-GAAP net income for the fiscal year should be $0 to $0.02 per share.

"As we've seen and communicated, our larger enterprise deals are more complex with longer sales cycles," CFO Dylan Smith elaborated on the conference call. "However, these deals result in higher-value, stickier customers, which are becoming a larger proportion of our total revenue base."