Box Q1 benefit, lack of guidance

Box shares plunged 11% in prolonged trading on Monday, after the cloud computing software company reported revenue prospects for the full year ahead of analysts' estimates.

Here are the key figures for the first quarter:

• Loss: 3 cents per share, excluding certain items, compared to an estimated 5 cents, according to Refinitv's consensus estimates
• Returned: 163 million USD against 161.4 million USD estimated, according to Refinitiv

The box business figure for the quarter increased 16% over the previous year, as the company attracted larger customers for its collaboration and workflow software.

However, as Box aligns with large customers, concluding agreements takes longer, the company said. As a result, Box lowered its outlook for the year, dropping the stock price sharply. Box said it expects revenues of between $ 688 and $ 692 million for the fiscal year 2020, which is well below the average estimate of $ 702 million analysts, according to Refinitiv.

"While we are encouraged by the demand for these larger and more strategic deployments, these contracts often have longer sales cycles, which is reflected in our updated forecasts," said CEO Aaron Levie in a statement released on Monday. .

The disappointing report was released after a particularly difficult day for technology stocks and for Box, which fell 3% in normal trading. Reports that Google, Amazon, Facebook and Apple could all be subject to further regulatory scrutiny pushed the Nasdaq Composite Composite Index, at the cutting edge of technology, down 1.6%, to its lowest level since February.

Box's shares increased by 6.2% for the year prior to earnings release.

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