June 1, 2016 / 8:15 PM / 2 years ago

Cloud storage provider Box's billings growth slows

(Reuters) - Cloud storage provider Box Inc (BOX.N) reported better-than-expected quarterly revenue and profit but a slowdown in billings growth pulled its shares down as much as 10 percent in extended trading.

Billings - revenue plus the change in deferred revenue - rose 9 percent to $75.9 million in the first quarter, compared with a 59 percent rise in the preceding quarter. The company had reported a 58 percent jump in billings in the first quarter a year earlier.

Analysts on average had expected billings of $84.9 million, according to market research firm FactSet StreetAccount.

“Billings were impacted by increasing seasonality in the business and the focus on annual payment durations from multi-year pre-payments, beginning this fiscal year,” the company said on Wednesday.

Box offers an online content management platform to individuals and businesses such as General Electric Co (GE.N) and GlaxoSmithKline Plc (GSK.L).

The company, which uses a “freemium” model, said its paying customer base rose to 62,000 at the end of the first quarter, up from 57,000 at the end of the fourth quarter.

Box also said that Sam Schillace, who led its engineering unit, has left the company.

Schillace will rejoin Alphabet Inc’s (GOOGL.O) Google unit, where he previously had a four-year stint working on a number of projects including Google Docs.

Jeff Queisser, one of Box’s co-founders, will lead the engineering division, according to Box spokesman Denis Roy.

    Box also forecast second-quarter revenue of $94 million-$95 million and an adjusted loss of 19-20 cents per share.

    Analysts were expecting revenue of $94.8 million and an adjusted loss of 22 cents per share.

    The company’s net loss narrowed to $38.6 million, or 31 cents per share, in the first quarter ended April 30, from $47.3 million, or 40 cents per share, a year earlier.

    Excluding items, the company lost 18 cents per share. Analysts had estimated a loss of 24 cents per share, according to Thomson Reuters I/B/E/S.

    Revenue rose to $90.2 million from $65.6 million, beating the average analyst estimate of $88.7 million.

    The company’s shares were down 7.7 percent at $11.82 in extended trading.

    Reporting by Narottam Medhora in Bengaluru; Editing by Don Sebastian and Maju Samuel

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