Box stock tanks after it reports a good quarter

Box CEO Aaron LevieBoxBox CEO Aaron Levie

Box reported a better than expected earnings on Wednesday but the stock is taking a beating in after hours trading thanks to soft guidance.

here’s what Box reported for the first quarter of its 2017 fiscal year, which ended April 30:

  • Record revenue of $90 Million, up 37% over the year ago quarter. That beat the street’s expectations by $1.5 million.
  • EPS, of -$0.18 which beats by $0.06.

It expects Q2 FY17 revenue of $94 million to $95 million. The street was looking for the high end, $94.83 million. It expects non-GAAP EPS of -$0.20 to -$0.19. The street is looking for -$0.20.

Box also said it added 5,000 new customers.

The stock was down 12% in after hours trading, though has now recovered a bit and is down about 7%.

Word also leaked on Wedneday that one of Box’s star engineers, Sam Schillace, has left Box to go back to his old employer, Google. Schillace is the guy that invented Google Docs. Box CEO spent years wooing Schillace to join Bo and Schillace finally took the offer in 2012. Schillace helped Box build collaboration features into Box’s file storage and sharing products.

Schillace was been wooed back to Google by its new star head of all things cloud, Diane Greene, Box confirmed to Bloomberg.

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