(Reuters) - Box Inc forecast first-quarter revenue above Street estimates, betting on high demand for its online software products that allow companies to manage and store content, sending its shares up nearly 9% in extended trading.
The company also beat fourth-quarter profit and revenue benefiting from its add-on services and as larger companies subscribed to its products.
"We are firing off on all cylinders on the profitability side and continue to drive a balance between growth and profitability," Chief Executive Officer Aaron Levie told Reuters.
As companies move online to create, share and store files, cloud storage companies are vying for a major share of the software services market that is estimated to hit 6 billion this year according to a Gartner report. (https://gtnr.it/388gVaV)
The content management platform that went public in 2015 competes with tech heavyweights like Microsoft (NASDAQ:MSFT) Corp's OneDrive and Alphabet (NASDAQ:GOOGL) Inc's Drive.
The company expects first-quarter revenue between 3 million and 4 million, above analysts' estimates of 1.8 million.
Revenue rose 12.1% to 3.6 million in the fourth quarter, above analysts' estimate of 1.6 million, according to IBES data from Refinitiv.
However, net loss widened to .4 million, or 20 cents per share, in the fourth quarter ended Jan. 31, from .7 million, or 14 cents per share, a year earlier.
Total operating expenses in the quarter rose 12.5% to 5.4 million, with sales and marketing costs accounting for nearly half of the costs.
On an adjusted basis, Box reported a profit of 7 cents per share above estimates of 4 cents per share.