Beware of Box's Increasing Profitability
Box (NYSE: BOX) posted fiscal first-quarter revenue growth of 13%, in line with guidance. Yet the bottom line came in better than expected thanks to reduced operating expenses. These results confirm that management's focus on improving profitability is taking shape, but that strategy will also have a negative effect on the top line.
The company offers a cloud-based platform that allows employees to manage their documents from anywhere. Thus, in the context of increased coronavirus-induced demand for work-from-home solutions, Box posted solid fiscal first-quarter results compared to its guidance.
Data Source: Box. GAAP = Generally Accepted Accounting Principles.
Source Fool.com
