- Box shares fell 23.32% on Thursday following a weak revenue forecast the day before.
- The cloud content management company closed out trading on Thursday at $US18.45.
- Investors were disappointed in the company’s 3.65% miss on its revenue forecast for the current quarter.
Box lost nearly a quarter of its value on Thursday, as panicked investors dumped the stock following the company’s disappointing revenue forecast.
Box finished out Thursday at $US18.45 – down 23.32% from Wednesday, when it closed at $US24.06.
Trouble started brewing for the cloud file management company following its Q4 2018 earnings release on Wednesday after markets closed.
Shares immediately fell more than 13% on the news that the company’s revenue guidance for the current quarter fell well below Wall Street expectations. Box reported that it expects to see between $US139 million and $US140 million in revenue for the quarter ending on April 30, while analysts expected the company to forecast $US144.27 million.
While the forecast was weaker than expected, Box’s earnings report for the recently finished fourth quarter of 2018 was in line with Wall Street expectations. Box reported $US136.7 million in quarterly revenue, up 24% from the year before. Analysts expected $US136.71 million in revenue.
Box, which went public in 2015, is still not profitable. The company reported an operating loss of $US32.5 million over the quarter on a GAAP basis, about 24% of its revenue. That’s a big uptick from the year before, when it saw an an operating loss of $US32.5 million, or 33% of its total revenue.