Box shares surged on Wednesday after it reported a narrower-than-expected quarterly loss as subscriptions and billings both rose.
The cloud computing company's stock jumped 9 percent in extended trading after it posted an adjusted fiscal first-quarter loss of 28 cents per share on $65.6 million in revenue.
Analysts expected Box to report a loss of 31 cents per share and deliver $64 million in revenue for the period, which ended April 30, according to a consensus estimate from Thomson Reuters.
Box also set sales guidance of $69 million to $70 million for its second quarter. That tops the $67 million in a consensus estimate from Thomson Reuters.
Read More
"As evident from our healthy customer adoption and strong billings growth of 58 percent year over year, Box has a significant opportunity to help organizations in every industry navigate this shift," the company's CEO, Aaron Levie, said in a release, referring to a move to digital storage platforms.
Investors have watched for money-losing Box to expand revenue and cut losses in the crowded cloud computing space. Its revenue increased 45 percent from the prior-year period, while its loss shrank from $2.32 per share.
In the company's conference call, CFO Dylan Smith said Box was on a "steady path" to profitability.
Billings in the quarter jumped to $69.8 million, a nearly 60 percent increase from a year earlier. Smith noted the company will see "variability" in billings.
Box topped 37 million registered users, as paying customers surged 70 percent. Despite the rise, only 10 percent of users pay for Box storage.
Read More10 game changers in cloud computing
The company's quarterly report is its second since going public in January.
After soaring more than 60 percent on their first day of trading on Jan. 23, Box shares have failed to keep momentum. The stock has fallen more than 25 percent since its first day's close.
Box has announced partnerships with multiple government agencies in recent weeks. The company will now provide file sharing for both the U.S. Department of Justice and the British Government Digital Service.
Programming note: Box CEO Aaron Levie will appear on CNBC's "Closing Bell" at 4:10 p.m. EDT on Thursday.