Box, Inc. (BOX – Snapshot Report) reported second-quarter fiscal 2016 loss of 40 cents per share, wider than the Zacks Consensus Estimate of a loss of 38 cents. Adjusted loss per share excludes one-time items but includes stock-based compensation expense.

Nevertheless, share price moved up more than 3% in after-hours trading driven by strong growth in billings and solid guidance.

Results in Detail

Box’s revenues of $73.5 million increased 42.8% year over year. Reported revenues were above management’s guided range of $69–$70 million and the Zacks Consensus Estimate of $69 million. Billings were $79.6 million, a 45% jump year over year. The company added about 3,000 customers, bringing the total to more than 50,000 globally.

Reported gross margin was 71.9%, down 700 basis points from 78.9% a year ago.

Box incurred operating expenses of $102.6 million, up 30.1% from the year-ago quarter figure of $78.9 million. As a percentage of sales, general & administrative as well as sales & marketing expenses decreased year over year, while research & development expenses increased. As a result, reported operating loss was 67.8% versus 74.5% a year ago.

On a GAAP basis, Box recorded net loss of $50.2 million (or loss of 42 cents per share) compared with loss of $39.4 million (or $2.71 a share) in second-quarter fiscal 2015.

On a pro-forma basis, Box generated net loss of $47.9 million compared with $37.2 million in the year-ago quarter. Pro-forma loss came in at 40 cents as against $2.57 per share in the year-earlier period.

Coming to the balance sheet, Box ended the quarter with cash and investment balance of $242.2 million versus $284.0 million at the end of the previous quarter. Accounts receivables were $54.0 million versus $38.6 million in the prior quarter. Deferred revenues were $118.3 million as against $111.5 million in the first quarter.

In the second quarter, cash generated from operations was ($21.7) million and capital expenditure was $17.9 million.