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IBM ( IBM ) is helping Box ( BOX ) notch some big deals, analysts say, and Box’s partnership with Microsoft ( MSFT ) could also provide a lift. Box stock gapped up 15% at the open in the stock market today , nearly touching a 14.62 buy point out of a cup base. But in morning trading Thursday, Box stock was up just 2.5%, below 13. The online data storage and file-sharing service provider late Wednesday posted a narrower-than-expected fiscal Q4 loss, as revenue growth of 36% topped expectations. Box said that it had closed 13 customer deals valued at more than $500,000 each in the three months that ended Jan. 30, up from nine such deals in the year-earlier period. Box also said that it had closed 66 deals valued over $100,000 each, up from 57 in the year-earlier period. “The IBM partnership showed early signs of traction with a few of the largest deals in the quarter,” said Richard Davis, an analyst at Canaccord Genuity, in a research report Thursday. Box partnered with IBM in June 2015 to develop new applications and jointly market products and services. The companies expanded their partnership in December. “Box beat fiscal Q4 estimates with continued momentum in enterprise, strong traction with IBM and better-than-anticipated upsales of (content management product) governance,” said Rob Owens, an analyst at Pacific Crest Securities, in a report. Box competes with Microsoft, though it’s now a partner for Office 365 products as well. It also counts as rivals Alphabet ’s ( GOOGL ) Google, privately held Dropbox, Amazon.com ( AMZN ) and others. At Credit Suisse, analyst Philip Winslow said in a report last week, “We remain encouraged by the growing traction of Box’s new products in addition to its partnerships with IBM and Microsoft.” Wrote Pacific Crest’s Owens: “We believe enterprise traction is improving as companies see a need for a unified content management platform across cloud applications, which is helped by technology integrations with Office365 and Salesforce ( CRM ).” Scalper1 News
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