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Box raised its full-year revenue forecast on Tuesday after reporting better-than-expected third-quarter sales, as the cloud management platform benefited from higher customer addition.
Shares of the Redwood City, California-based company rose about 4% in extended trading.
Box raised full-year revenue forecast to a range of $693.7 million to $694.7 million compared with its earlier expectation of $690 million to $692 million, the midpoint of which is above analysts’ estimate of $690.9 million, according to IBES data from Refinitiv.
High volume of large enterprise deals and increased sale of add-on products boosted revenue in the quarter, Chief Executive Officer Aaron Levie said.
Demand for cloud storage has risen over the past year as companies shift work to cloud due to convenience and lower costs.
Global spending on cloud infrastructure services rose 38% from a year earlier, research firm Canalys said in early-August.
Total operating expense for the quarter rose about 6% to $160.1 million from a year earlier.
Box has been investing heavily in its cloud management platform to gain market share in an industry dominated by Microsoft’s OneDrive, Google’s Drive and Dropbox.
For the fourth quarter, the company expects revenue in the range of $181.0 million to $182.0 million, above analysts’ estimate of $180.8 million.
The company’s revenue rose 13.6% to $177.2 million in the quarter, beating analysts’ estimate of $174.6 million.
Box’s third-quarter billings revenue plus the change in deferred revenue rose 10% to $171.9 million, edging past analysts’ estimate of $171.4 million.
Net loss widened to $40.9 million in the third quarter ended Oct. 31 from $40.2 million, a year earlier.
Excluding items, Box reported a loss of 1 cent per share which was in-line with analysts’ expectations.