Box hopes solid earnings silence critics
Box CEO Aaron Levie tells Axios that yesterday's earnings report shows that the company can deliver long-term growth, and that last year's slowdown was a hiccup.
Why it matters: The online storage firm is in the midst of a proxy fight with activist investors who want a greater role on the company's board.
"We're firing on all cylinders," Levie said in an interview Wednesday, just after the company reported earnings. Levie noted that the company has 20% operating margins, up from nearly zero a year ago, while sales have shown accelerating growth the past two quarters as well.
All that, he said, adds up to evidence the company can reach its long-term goals of revenue growth in the range of 12% to 16% and its operating margins of around 23% to 27%.
- Box also points to a report from advisory firm ISS that encourages shareholders to vote for the company's board nominees in the ongoing proxy battle.
Between the lines: The pandemic accelerated the broad shift towards digitization, but many of Box's small and midsize business customers found themselves scrambling in the early days of the pandemic, hurting business for part of last year."
Businesses have adapted," Levie said, with growth returning even in some of the hardest hit industries.
By the numbers:
- Q2 revenue: $214.5 million, up 12% from the prior year and slightly ahead of analysts' consensus expectations.
- Adjusted earnings: 21 cents per share, above consensus estimates of 17 cents per share, per Zacks.
Yes, but: Box shares fell slightly in after-hours trading following the report.