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Online storage company Box is tanking after missing estimates on its first-ever earnings report (BOX)

Aaron Levie Box Portrait Illustration

Business collaboration app Box is reporting its first earnings on Wednesday.

Here are the most important numbers, versus Wall Street expectations:

  • EPS: a loss of $1.65 per share ($2.64 GAAP loss) vs. $1.17 per share 
  • Revenue: $62.6 million vs. $57.99 million

Box shares are down more than 10% afterhours.

For a company of its size (~$2.5 billion market cap), Box has drawn a lot of attention because of its unusual IPO process. More than anything, Box's earnings will serve as a bellwether for other software-as-a-service (SaaS) companies looking to go public this year.

Although Box missed on its earnings, it's a good sign that its sales grew 61% from last year. Its non-GAAP operating loss has also improved from $35.2 million to $32.2 million year-over-year.

Also, Box gave revenue guidance in the range of $63 to $64 million, slighly higher than estimates in between $60 to $62 million.

Besides its sales and net profit, it'll be interesting to see if Box has managed to lower its sales and marketing costs relative to its total revenue. In its S1, Box had indicated its S&M cost was 94% of its revenue, after spending 166% of it on S&M two years before that. Those are pretty high figures even by SaaS standards, where spending lots on S&M early on is considered the norm.

Box also had over 44,000 paying businesses and a roughly 130% retention rate when it went public. We'll see how those numbers have changed over the past quarter.

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