By Kelly Cloonan

Box raised its full-year guidance after logging higher sales in the first quarter as its clients continue to turn to artificial intelligence to remain competitive.

The Redwood City, Calif., cloud-storage firm on Tuesday said it now expects full-year sales to grow 7% to $1.165 billion to $1.17 billion, up from its previous guidance of $1.155 billion to $1.160 billion.

The company now expects adjusted earnings per share of $1.22 to $1.26, up from a previous range of $1.13 to $1.17 despite an expected headwind from non-cash deferred tax expenses.

Analysts expect $1.15 billion in sales and adjusted earnings of $1.19 a share for the year.

Chief Executive Aaron Levie said the company faces a pivotal moment as AI changes work and business.

"In this AI-first era, organizations are embracing this shift to stay competitive," Levie said, adding the company continues to roll out AI features.

For the first quarter, the company posted a profit of $8.2 million, or 2 cents a share, compared with $17.2 million, or 8 cents a share, a year earlier. The company previously warned its quarterly profit would be hurt by a stronger U.S. dollar.

Adjusted earnings per share were 30 cents, ahead of estimates of 26 cents a share, according to analysts polled by FactSet. Adjusted earnings were dented by non-cash deferred tax expenses and helped by favorable foreign exchange rates, the company said.

Revenue rose 4% to $276.3 million. Analysts expected $275 million.

Billings rose 27% to $242.3 million.

For the second quarter, the company guided for sales to grow 8% to $290 million to $291 million and adjusted earnings per share of 30 cents to 31 cents. Analysts were looking for $284.5 million in sales and 28 cents a share in adjusted earnings.

Shares rise 11% to $34.90 in after-hours trading.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

May 27, 2025 16:38 ET (20:38 GMT)

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