Box Raises Revenue Outlook, Lowers Adjusted EPS

Box reported stronger results for the second quarter and raised its full-year revenue outlook, but trimmed its full-year adjusted earnings guidance due to dilution and foreign exchange headwinds from a weaker Japanese yen. The company earned $19.2 million, or $0.09 per share, in Q2, up from $13.4 million a year earlier, while adjusted earnings were $0.40 per share, in line with analysts’ expectations, and revenue reached $321.1 million. Box lifted its full-year revenue forecast to about $1.29 billion, but reduced adjusted earnings guidance to roughly $1.54 per share from $1.56, citing FX and dilution pressures. For the current quarter, Box guided to adjusted earnings of $0.39 per share on about $329 million in revenue, modestly above or in line with earnings expectations and above revenue expectations. Analysts still expect full-year adjusted earnings of about $1.58 on $1.28 billion in revenue, underscoring FX headwinds as a key risk. The results show ongoing earnings pressure on non-GAAP metrics even as revenue growth is projected.