Box has reported a 45 percent hike in revenues to $65.6m for the first quarter of its 2016 fiscal year, but the company is still bleeding millions in losses.
The revenue hike was driven by $69.8m generated through a 58 percent increase in billings over the same quarter a year earlier.
However, Box posted net losses of $47.2m for the quarter compared with a loss of $38.5m in the same period last year.
Box went public in January, and the losses translate into a fall of 40 cents per share, or $47m, for common stockholders. Interestingly, despite the rise in net losses, Box's loss per share was lower than the $2.81 a year earlier.
The company reported an operating loss of $46.6m for the quarter, representing 71 percent of revenue, compared with losses of $37.8m in the first quarter of its 2015 fiscal year.
Part of the net operating loss is down to $9m spent on sales and marketing for the quarter, resulting in the company having allocated $56m to promote its services and win new customers.
This spending indicates that Box is currently more interested in growth than short-term profit.
This sales and marketing drive appears to have had a positive effect. Box claimed that the firm added over 2,000 new customers in the period, giving it a total of 47,000.
Box's paying users grew by 70 percent over the period, and the company now claims to have a registered user base of over 37 million.
Dylan Smith, co-founder and chief financial officer at Box, said the company will continue to pursue this growth and close more enterprise deals.
"While we continue to focus on investing in technology innovation and growth, we also remain committed to achieving positive free cash flow," he said.
"Our Q1 results show the progress we have made toward this milestone as we demonstrated significant improvement in our operating cash flow."
Evidence of Box's pursuit of new customers can be seen in a recent deal to sign 43,000 users from Dundee and Lancaster universities and another deal with the US Department of Justice.
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