Box Inc (BOX)

Shares of Box Inc (BOX) dropped by 10.19% from $26.69 to $23.97 in the trading on Wednesday, December 6, 2023. The reason why BOX is down today is due to the company's third-quarter fiscal 2024 earnings report, which fell short of market expectations.

• Earnings and Revenue Miss: Box reported non-GAAP earnings per share of 36 cents for the third quarter, missing the Zacks Consensus Estimate by 5.3%. Despite a 16.2% year-over-year increase in earnings, this miss likely contributed to the decline in the stock price.
• Revenue Growth: While Box's total revenues of $261.54 million increased by 5% year over year (7% growth on a constant currency basis), they fell slightly short of the consensus estimate of $262.03 million.
• Market Concerns: Box cited macroeconomic concerns impacting IT spending negatively as a reason for its results. Additionally, the company's dollar-based net retention rate (DBNRR) contracted significantly from the previous quarter, raising concerns among investors.
• Guidance Trimmed: Box also trimmed its revenue guidance for fiscal 2024 and updated its guidance for non-GAAP earnings per share, which might have contributed to the negative sentiment surrounding the stock. Overall, these factors appear to have led to the decline in Box's stock price on December 6, 2023.

Box's shares plummeted by 12.31% after Q2 2024 results, despite a 6% YoY revenue increase to $261 million and 4% operating margin. The drop was due to lowered full-year guidance and industry-wide growth challenges. Box's modest growth and lowered profit guidance might deter investor interest.

https://www.fool.com/investing/2023/08/30/heres-why-box-stock-got-knocked-down-today/