Box Stock Tumbles On Q2 Earnings: What's Driving The Action After Hours?

Box Inc BOX shares are trading lower in Tuesday's after-hours session on the heels of the company's second-quarter results. Box issued soft guidance, which appears to be driving shares lower after the bell.

What Happened: Box said second-quarter revenue increased 6% year-over-year to $261.43 million, which beat the consensus estimate of $261.12 million, according to Benzinga Pro. The company reported quarterly earnings of 36 cents per share, which beat analyst estimates of 35 cents per share.

Cash from operations totaled $33 million in the quarter, up 15% year-over-year. Free cash flow came in at $21 million, up 15%. 

"With Box AI, we will be able to securely connect customer's enterprise content with the world's leading AI models, uniquely positioning Box at the center of the future of work," said Aaron Levie, co-founder and CEO of Box.

Co-founder and CFO Dylan Smith added, "While ongoing economic factors have affected our customers' IT budgets and put pressure on our projected fiscal 2024 growth rate, we remain committed to our long-term revenue growth targets as we continue to drive gross margin and operating margin expansion in FY24 and beyond."

Box said it expects third-quarter revenue to be between $261 million and $263 million versus estimates of $265.63 million. Adjusted earnings are expected to be in the range of 37 cents to 38 cents per share versus estimates of 39 cents per share. 

Full-year revenue is expected to be between $1.04 billion and $1.044 billion versus estimates of $1.05 billion. The company sees full-year earnings of $1.46 to $1.50 per share versus estimates of $1.49 per share.

Box also announced an $100 million expansion of its stock repurchase program. During the second quarter, the company repurchased 2.2 million shares at an average price of $28.55. 

Management will hold a conference call to discuss these results at 5 p.m. ET.

See Also: Analyst Eyes $1T AI-Driven Opportunity with Alphabet, Amazon, and Meta Leading the Charge 

BOX Price Action: Box shares were down 8.54% after hours at $28.17 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Box.