Shares of Box (NYSE: BOX) jumped by 13.6% in October, according to data provided by S&P Global Market Intelligence, after the company said it will reach its goal of generating $1 billion in annual revenue in 2021 -- one quarter earlier than expected.
Box, a cloud enterprise software company, has seen its share price slide about 6% since its IPO more than two years ago. But investors started believing in the company again last month when Box's co-founder and CFO, Dylan Smith, said the company will have its first profitable quarter (on an unadjusted basis) in fiscal 2019, and that it would reach $1 billion in annual revenue by 2021.
Box has made similar forecasts before, but investors appeared more optimistic this time that the company's new partnerships and its product mix can achieve these goals. The company has worked diligently to increase partnerships with Amazon, Microsoft, Google, and others, and it's looking to its new Box Skills and Box Graph products to help spur more growth.
Investors were probably pleased to hear that Box plans to reach it $1 billion revenue goal a quarter earlier than expected, especially because the company has backed up many of its goals in the past. The Wall Street Journal reported this month that Box has beaten its own revenue forecasts each quarter since going public.
Box has forecasted revenue between $128 million and $129 million for its third-quarter fiscal 2018 earnings, which it will report later this month, and says it'll reach between $503 million to $506 million for its full-year fiscal 2018 revenue.
The company still has a lot to prove, and investors should keep a close eye on whether or not Box continues to meet -- or exceed -- its guidance. For now, the company appears to be making solid steps toward its $1 billion goal by 2021, but a lot could happen between now and then.
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