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Box investors are even more negative after mulling over the company's weak forecast and shares crumbled 23%

Becky Peterson   

Box investors are even more negative after mulling over the company's weak forecast and shares crumbled 23%
Tech2 min read

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Markets Insider

Box shares dropped sharply on Thursday.

  • Box shares fell 23.32% on Thursday following a weak revenue forecast the day before.
  • The cloud content management company closed out trading on Thursday at $18.45.
  • Investors were disappointed in the company's 3.65% miss on its revenue forecast for the current quarter.

Box lost nearly a quarter of its value on Thursday, as panicked investors dumped the stock following the company's disappointing revenue forecast.

Box finished out Thursday at $18.45 - down 23.32% from Wednesday, when it closed at $24.06.

Trouble started brewing for the cloud file management company following its Q4 2018 earnings release on Wednesday after markets closed.

Shares immediately fell more than 13% on the news that the company's revenue guidance for the current quarter fell well below Wall Street expectations. Box reported that it expects to see between $139 million and $140 million in revenue for the quarter ending on April 30, while analysts expected the company to forecast $144.27 million.

While the forecast was weaker than expected, Box's earnings report for the recently finished fourth quarter of 2018 was in line with Wall Street expectations. Box reported $136.7 million in quarterly revenue, up 24% from the year before. Analysts expected $136.71 million in revenue.

Box, which went public in 2015, is still not profitable. The company reported an operating loss of $32.5 million over the quarter on a GAAP basis, about 24% of its revenue. That's a big uptick from the year before, when it saw an an operating loss of $32.5 million, or 33% of its total revenue.

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