Boxlight shares pop after edtech company beats Street's 4Q forecasts

Shares of Boxlight Corp (NASDAQ:BOXL) popped in Thursday’s extended trading after the edtech company zipped past the Street’s forecasts for revenue and earnings in the fourth quarter thanks to schools’ signing new contracts for its technology programs in the US and international markets.

In its latest reporting period, the Georgia company reported revenue of $11.98 million, which came in ahead of the consensus of $11 million, and was more than double the $5.3 million in sales reported in the year-ago quarter.

Investors applauded the results, sending Boxlight shares up 29% to $3.72 in Thursday’s after-hours trading.

READ: Boxlight wins $4M investment from The Lind Partners

The company’s net loss shrank to $594,462, or $0.06 per share, from a loss of $4.6 million, or $0.66 per share, a year earlier. The results exceeded the estimate of analysts, who had forecast that Boxlight would lose $0.17 per share.

In a statement, Mark Elliott, Boxlight’s CEO, said the company’s sales pipeline in the US, Europe and Latin America is booming.

“We had an extremely eventful and productive 2018, particularly in the fourth quarter,” Elliott said. “We’ve successfully grown our sales pipeline across the US and in key international markets including Europe and Latin America, which has resulted in the largest sales pipeline in our history,”

On its list of quarterly highlights was a move by California’s Huntington Beach City School District to add 60 of its MimioSpace collaborative systems to its classrooms.

In other news, South Carolina’s Beaufort County School District moved to partner with Boxlight to introduce the latest interactive education technology to its classrooms.

Boxlight scored a funding victory this week when it received a $4 million investment from The Lind Partners, a New York fund manager.

The proceeds from this new strategic stake taken by the Lind Global Macro fund will be put toward increasing the Georgia company’s inventory levels in the US and Europe as well as funding the launch of several new products including its MyBot coding and robotics program, recently acquired as part of its takeover of Modern Robotics Inc.

“We are thrilled to have The Lind Partners as a significant Boxlight investor,” said Mark Elliott, CEO of Boxlight, in a statement. “The proceeds from the investment will provide us the needed capital to execute our aggressive growth strategy and bridge our operations to positive cash flow.” 

READ: Boxlight shares climb as it gets ready to join Russell Microcap Index

The investment comes in the form of a $4.4 million convertible note with a 24-month maturity and a fixed conversion price of $4 per share of class A stock.

Looking ahead, Boxlight expects 2019 revenue to jump by at least 25% over 2019. It’s also targeting gross margins in the 25 to 30% range for 2019.

Based in Lawrenceville, Georgia, Boxlight sells new sorts of educational technology that is useful in classrooms. Its products include MimeoFrame, a kit that turns any existing whiteboard into a 10-touch interactive whiteboard, and the ProColor 490 Touch Table, which promotes interactive learning in special needs classrooms.

Contact Ellen Kelleher at [email protected] 

Story by ProactiveInvestors