Get All Access for $5/mo

With Stock Tanking, Box Founder Responds to Complaints Box's stock price is the victim of confused analysts, Aaron Levie says.

By Everett Rosenfeld

This story originally appeared on CNBC

Box.com

Box's stock price is the victim of confused analysts, CEO Aaron Levie said.

He said Thursday on CNBC's "Closing Bell" that he did not want to overemphasize results' relation to Wall Street expectations, but he did want to set the record straight about his company.
"On every metric in the last quarter—on revenue, on operating income, on billings—we beat the estimates from analysts," Levie said. "So we think we had a great quarter."

Shares in the cloud storage company tanked Thursday—down about 15 percent just before Levie spoke with CNBC, but paring those declines by the market close—after it reported fiscal fourth-quarter results after the bell Wednesday.

Box posted a loss of $1.65 per share, which initially appeared to be a major miss because some consensus estimates called for a loss of about $1.17 per share.

Levie told CNBC Wednesday night, however, that that consensus figure was wrong because some analysts had based their expectations on an incorrect share count. In fact, he said, the actual consensus was for a loss of $1.99—meaning Box topped what Wall Street projected.

Responding to one analyst's complaint that he was being too defensive for a company CEO who just had his first earnings release since going public, Levie said he wanted to make sure Box sets "appropriate expectations."

Still, he said "for the most part, we're just focused on execution."

Box's quarterly revenue easily topped Street projections, rising to $63 million, compared with estimates for $58 million.
The company forecast revenue growth of about 30 percent in the current fiscal year, which would mark a slowdown.

As for another analyst's complaint that Box spends too much on advertising, Levie said that ad spending has fallen as a percentage of revenue, but "our job right now is to go capture as much adoption as possible."

—CNBC's Josh Lipton and Karma Allen contributed to this report.

Everett Rosenfeld is a staff writer at CNBC.

 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Franchise

Earn $680K a Year with This Wedding Industry Franchise

Wed Society stands out as a unique player in the world of home-based franchises, catering specifically to the recession-resistant wedding industry with franchisees generating an average annual revenue of over $680,000.

Business News

Jake Paul Says He's 'Scared' to Fight Mike Tyson, But This Mindset Hack Helps Him 'Embrace' Fear and Make Millions: 'Let It Fuel You'

The social media star and "W" founder spoke to Entrepreneur about his latest ventures in boxing and business.

Science & Technology

No More ChatGPT? Here's Why Small Language Models Are Stealing the AI Spotlight

Entrepreneurs can leverage this growing tech to create innovative, efficient and targeted AI solutions.

Marketing

10 Effective Growth Marketing Hacks and Strategies for Your Startup

Working at a startup can feel like building a plane while you're trying to take off. Use these ten marketing tips to effectively grow and sustain your startup.