Box announces Q2 financial figures, hits 50,000 customers

Enterprise cloud storage provider Box has announced its second quarter financial results, with revenue at $73.5 million (£47.6m) and a customer base of over 50,000.

For the second quarter of fiscal 2016, ending July 31, Box announced revenue figures at an increase of 43% year over year. Billings were at $79.6m, an increase of 45% from the same period last year, while non-GAAP operating loss was at 45% of revenue, down from 57% in fiscal year 2015.

The SaaS provider noted among its 50,000 customers were Airbnb, Uber, and IBM. The latter is particularly noteworthy. In June the two companies announced a collaboration aimed at content management and social collaboration, as well as future integration with Watson Analytics. Yet it goes beyond that; IBM signed one of the four customer deals beyond $500,000 in the last quarter.

Dylan Smith, co-founder and chief financial officer of Box, said in a statement: “We continued to execute on our path to profitability by delivering improved non-GAAP operating margin. While we continue to invest in our large market opportunity and solidify our leadership position, our business model allows us to drive gains in operational efficiency as we scale.”

Box has made various plays in recent months to strengthen its hand in both enterprise and security. Among the more than 40 federal customers on the SaaS provider’s books is the US Department of Justice, in a deal announced back in May. Two months before, Box hired former General Services Administration CIO Sonny Hashmi to help lead the company’s efforts in the space.

It was this area which was cited as key by Zuora CEO Tien Tzuo in March. Analysing strategic avenues in the aftermath of Box’s IPO, he wrote:  “Risk-averse, highly regulated industries like healthcare, banking, and government represent huge opportunities for Box. Box has a huge opportunity in terms of offering government-grade protection protocols to both large enterprises and private consumers.

“Users may come to see Box as less of a place where they store information securely, and more of a place where they go to actively secure sensitive information.”

Compare and contrast with Dropbox, a company often portrayed as a rival, particularly given both firms’ push towards enterprise customers. In June Dropbox announced eight million business users were on board, a number which has doubled in 19 months.