Markets News

UPDATE 1-Box Inc raises annual revenue forecast on strong demand for online workplace tools

(Adds forecast, CEO comment, profit, shares)

Aug 26 (Reuters) - Box Inc raised its annual revenue target and beat estimates for quarterly results on Wednesday, as more people opted for its online software services to manage and store content while working from home due to the COVID-19 pandemic.

Shares of the company, which went public in 2015, were up nearly 9% in extended trading.

Millions of workers across the globe are working remotely due to the pandemic and several companies have extended work from home until next year, spurring demand for online workplace tools.

In an interview with Reuters, Chief Executive Officer Aaron Levie said companies are looking beyond the coronavirus-led remote work trend to focus on moving to the cloud and securing their data for the long term.

Box also saw a rise in demand for its data security products, he added.

The company now expects revenue of between $767 million and $770 million for fiscal year 2021, compared with its previous forecast of $760 million to $768 million.

Box, which competes with Dropbox Inc and Microsoft Corp’s OneDrive, said revenue rose 11.4% to $192.3 million in the second quarter ended July 31, beating analysts’ average estimate of $189.56 million, according to IBES data from Refinitiv.

The content management platform’s net loss narrowed to $7.7 million, or 5 cents per share, from $36.2 million, or 25 cents per share, a year earlier.

Excluding items, the company earned 18 cents per share, above analysts’ average estimate of 12 cents per share.

Reporting by Neha Malara in Bengaluru; Editing by Vinay Dwivedi