Box, Inc. (NYSE:BOX) shares fell more than 3% on Thursday despite better-than-expected Q2 results, with EPS of $0.28 beating the Street estimate of $0.27. Revenue came in at $246 million, compared to the Street estimate of $245.3 million.
Positively, sales cycles are unchanged despite the unsettled macro environment, Suites traction continues to grow, net retention rate improved to 112%, churn improved to 3%, and operating margin improved to 21.7%.
According to the analysts at Oppenheimer, the strong business metrics reinforce confidence in management’s Content Cloud strategy and that Box’s Suites’ selling motion and strengthening value proposition leaves the company well positioned to meet/beat near-term targets.
The company expects full 2023-year EPS to be in the range of $1.13-$1.16, compared to the Street estimate of $1.14, and revenue in the range of $992-996 million, compared to the Street estimate of $1.02 billion.
With incremental sales capacity still ramping, the analysts at Oppenheimer are comfortable that the company can meet/beat the 2023 guidance despite ongoing macro/FX headwinds.