Sunday, November 24, 2024

Software firm Box posts first $1 billion fiscal year as AI sales pick up

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Box Inc.’s stock was up more than 4% after hours Tuesday after the software firm reported its first $1 billion fiscal year and announced a $100 million share-buyback program.

“Customers in financial services are upgrading to Box AI,” Box Chief Executive Aaron Levie said in an interview, referring to a new suite of capabilities that will integrate advanced AI models into the Box Content Cloud. The company also announced integration with Microsoft Corp.’s
MSFT,
-2.96%

Azure OpenAI on Box AI.

“AI and data and content are powering automated work flows like invoice processing and contract details,” Levie said.

The company
BOX,
-2.26%

reported fiscal fourth-quarter net income of $99.2 million, or 57 cents a share, compared with net income of $20.5 million, or 10 cents a share, in the year-prior quarter. Adjusted earnings were 42 cents a share.

Revenue increased 2% to $262.9 million, from $256.5 million in the same quarter a year ago. Fiscal-year revenue topped $1 billion for the first time.

Analysts surveyed by FactSet had, on average, expected net income of 38 cents a share on revenue of $263.3 million.

Box executives said they anticipate sales of $261 million to $263 million in the current first quarter. Analysts polled by FactSet are expecting $262 million.

Shares of Box have been mostly flat over the past year, while the S&P 500 index
SPX
 is up 27%.



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