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Box shares fall over 20% on concerns over slowed growth

Cloud storage provider Box started out the day Thursday down over 20% on the stock market. Shares traded as low as $19.11 in early hours of trading, down from a previous close of $24.07.

The company reported quarterly earnings after the bell on Wednesday, and while its losses of six cents per share surpassed analyst expectations of negative eight cents, investors were concerned about the outlook.

Revenue was $136.7 million, in line with analyst estimates, but Box said it projected revenue for the next quarter to be $139 million to $140 million, disappointing Wall Street which was looking at $144.3 million. Its full year is expected to be between $602 million and $608 million, beneath the $625.6 million that analysts forecast.

In a conversation with TechCrunch, CEO Aaron Levie said that the slower growth was partly attributable to an accounting change. He called the guidance “conservative,” but acknowledged that “at scale obviously there’s a natural slowdown that you experience.”

He also spoke of competitor Dropbox’s upcoming IPO, highlighting the differences between the two companies. He said that while the company has “really strong financials,” the two are competing in “fundamentally different markets,” emphasizing that Box has a greater focus on large enterprises.

Box says it has clients at 69% of the Fortune 500 companies.



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I'm a 50 year old PLC programmer from Burnley, UK. I severed my time as an electrician in the baking industry and soon got involved with the up and coming technology of PLC's. Initially this was all based in the Uk but as the years went by I have gradually worked my way around the globe. At first it was mainly Mitsubishi with a bit of Modicon thrown in but these days the industry leaders seem to be the Allen Bradley range of PLC and HMI’s.

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