Loss-Making Box Grows Revenues By 43 Percent

Box revenues increased by 43 percent during the second quarter of its 2016 financial year, with the cloud firm passing 50,000 paying customers.

The company generated $73.5 million (£47.6m) during the quarter, up from $51.4 million (£33.3m) a year ago, with major customer wins including Airbnb, Linkedin, Spotify and Twitter. In total, Box’s cloud platform has more than 39 million registered users.

Box results

However Box is still losing money. Loss increased from $29.4 million (£19m) to $32.7 million (£21.2m), but the company is unconcerned, stressing its investments will allow it to capitalise on a “large market opportunity” and continued revenue growth shows it is on the “path to profitability.”

“We delivered another strong quarter with year over year revenue growth of 43 percent and billings growth of 45 percent driven by new and expanding customer deployments,” said Aaron Levie, Box CEO. “We continue to invest in our core platform while adding new products like Enterprise Key Management and Governance that augment our ability to capture demand in the broader enterprise content management market.”

Alongside improvements to its platform, Box has entered into a major partnership with IBM that will see the two firms combine the former’s content collaboration platform with the latter’s expertise in analytics and security, along with its global cloud footprint.

Box expects third quarter revenues to be between $76 million and $77 million and plans to reveal more updates at its annual BoxWorks event in San Francisco later this month.

Take our data centre quiz here!