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.