Box Inc shares fell more than 3 percent in after hours trading Wednesday after the company reported slower quarterly growth in revenue compared to a year prior.
The cloud content company turned in revenue of $122.9 million and a loss of 11 cents per share. Analysts on average had expected a loss of 13 cents and revenue of $121.7 million, according to Thomson Reuters I/B/E/S.
Despite beating expectations, Box saw its revenue growth slow. Revenue was up 28 percent, billings were up 31 percent and deferred revenue was up 32 percent year-to-year, but those figures were lower than the growth the company reported this time last year.
“There’s no question we can be driving pretty significant growth, and that’s the opportunity that lays ahead of us,” Chief Executive Aaron Levie told Reuters on Wednesday.
Despite slower revenue, Levie highlighted Box’s top deals in the quarter, saying the company closed eight deals over $500,000 and four over $1 million. By comparison, Box closed just five deals worth more than $500,000 and one over $1 million in the same period last year. These included deals with Amazon.com Inc and Delta Global Services, he said.
“We’re seeing a significant migration from large enterprises,” Levie said. “They’re starting to move to the cloud.” (Reporting by Salvador Rodriguez and Laharee Chatterjee; Editing by Martina D’Couto and Grant McCool)