Today, 11:33 AM| Today, 11:33 AM | 2 Comments
Fri, Oct. 16, 9:36 AM
- Believing risk/reward has improved with shares down 33% since February, JPMorgan's Mark Murphy has upgraded Box (BOX +2.5%) to Overweight, while cutting his target by $3 to $18.
- Murphy also highlights recent insider buying, notes a lockup expiration has come and gone, and argues investors may be underestimating the importance of the IBM partnership.
Thu, Oct. 8, 9:55 AM
Wed, Sep. 9, 4:28 PM
- With an FQ2 beat on the books, BOX is now guiding for FY16 (ends Jan. '16) revenue of $295M-$297M, above prior guidance of $286M-$290M and a $289.6M consensus. Op. margin (non-GAAP) guidance has been slightly improved to -47% to -49% from -49% to -51%.
- FQ3 revenue guidance is at $76M-$77M (above a $74.3M consensus), and op. margin guidance at -49% to -50%.
- Billings/customers: Billings rose 45% Y/Y in FQ2 to $79.6M, topping revenue of $74.5M (+43%); FQ1 billings growth was 58%. The paid customer rose to 50K+ from. 47K+ at the end of FQ1, and includes over 52% of the Fortune 500 and 28% of the Global 2000; new/expanded deployments included IBM (previous), Airbnb, Uber, Alcoa, and Lionsgate. Registered users rose by 2M Q/Q to 39M+.
- Financials: GAAP operating expenses rose 30% Y/Y to $102.6M. Sales/marketing spend (closely-watched) totaled $58.5M, or 73% of billings. R&D spend totaled $26.5M, and G&A $17.7M. Gross margin fell to 71.8% from 79% a year ago. Box ended FQ2 with $242.2M in cash, $28.2M in restricted cash, and $40M in debt.
- Shares have risen to $14.70 after hours.
- FQ2 results, PR
Mon, Aug. 24, 10:00 AM
- Among the biggest tech decliners as U.S. stocks tumble/see panic selling amid a global plunge in equities triggered by China/macro fears: SolarCity (SCTY -8.4%), Ambarella (AMBA -8.6%), SolarEdge (SEDG -7.9%), Fitbit (FIT -9.7%), Canadian Solar (CSIQ -10.2%), 21Vianet (VNET -15.7%), Yingli (YGE -14.4%), VirnetX (VHC -11.3%), and Digital Ally (DGLY -19.3%).
- Also off sharply: Rapid7 (RPD -7.5%), Shopify (SHOP -9.1%), Alliance Fiber (AFOP -12%), SuperCom (SPCB -10%), Luxoft (LXFT -7.3%), Box (BOX -14.7%), and Castlight (CSLT -13.8%).
- The Nasdaq has pared its opening-bell losses a bit. It's now down 4.6%, after starting off down 7.5%.
- See also: Premarket decliners, Chinese tech decliners, large-cap tech decliners
- Update (10:35AM ET): SolarEdge is now up 1.6%. Various other names have pared their losses some, but remain sharply lower.
- Update 2 (10:42AM ET): Add SolarCity to the ranks of rebounding stocks: Shares are now up 4.7%.
- Update 3 (12:29PM ET): The Nasdaq is now down just 0.3%. Ambarella, Fitbit, Rapid7, and Canadian Solar have also turned positive.
Fri, Aug. 7, 3:10 PM
- Citing its recent selloff, Oppenheimer has upgraded BOX to Outperform. The firm's target is $21.
- Oppenheimer: "We believe customer additions remain solid and see increasing interest in [enterprise key management], which could mitigate price pressure concerns ... From the start we've been positive on Box's large and growing [addressable market], effective land-and-expand business model, and take-out possibility, but looked for a better entry point." The firm admits "there's some incremental concern" Microsoft could become a bigger competitor in time, in spite of its (Office 365-focused) partnership with Box.
- Separately, Jim Cramer defended Box once again (previous) during last night's episode of Mad Money. "[Box] has really proven to be a battleground. Aaron Levie runs a good company, and the fact that this company is only [worth] $1.6 billion with the opportunity it has, you know what? I think the market is wrong on Box."
Mon, Jul. 27, 9:57 AM
- "Recent launches of vertical solutions, Box Governance and Enterprise Key Management are increasing competitive differentiation and driving better monetization of the installed base," writes Pac Crest (KeyBanc), upgrading BOX to Overweight and setting a $24 target.
- Pac Crest: "[A] focus on developers is driving adoption within third-party applications ... We believe competition is falling behind in enterprise capabilities and that an expanded product set is creating an opportunity for Box's platform to be the leading content management and collaboration layer across the enterprise market."
- CEO Aaron Levie has offered some of the same arguments when asked how Box's platform stands out from aggressively-priced cloud storage and collaboration services from the likes of Google, Microsoft, and Amazon. Box is bouncing after having touched a post-IPO low of $16.15 on Friday.
Mon, Jul. 20, 3:25 PM
- BOX is posting steep losses ahead of Wednesday's lockup expiration. 30M+ shares become eligible for sale - more than twice as many as were sold through the IPO.
- Shares are barely a dollar above a 52-week low of $16.40. They rallied last Tuesday after CEO Aaron Levie appeared on Jim Cramer's Mad Money.
Fri, Jul. 17, 5:45 PM
Tue, Jul. 14, 1:55 PM
- BOX is the latest stock to rally after an exec appeared on Jim Cramer's Mad Money (video). "With 37 million total users on their mostly free data storage platform, and 47,000 customers who actually pay for higher quality of service, I think Box has found a business model that works," said Cramer just before a talk with CEO Aaron Levie.
- Levie once more argued (previous) Box's cloud storage/file-sharing platform is differentiated from aggressively-priced rival platforms from the likes of Google and Microsoft, as well as from Dropbox's more consumer/SMB-focused offerings. "We bring a consumer-grade ease of use to being able to share and collaborate on your content."
- He also talked up Box's recent deal with IBM - "We saw this huge opportunity where, what if we could take our technology for individuals that want to be able to share and work together, and connect that with the IBM technology that really helps run the backbone of the business, the workflows of the business, the security of the business."
- Levie on partnerships with rivals such as Microsoft: "I think this is the new state of enterprise software…even though we compete on the fringe in some areas, we actually end up being way stronger partners when you look at it from a holistic standpoint."
- Shares are up 28% from their $14 IPO price, but down 11% from a post-IPO opening trade of $20.20.
Thu, Jun. 25, 3:39 PM
- Box (BOX +4.7%) is strongly adding to the Wednesday gains seen after announcing a partnership with IBM that covered Big Blue's content management software, iOS apps, security tech, and Watson Analytics platform, among other things.
- Discussing the deal with the NYT, CEO Aaron Levie called it "[Box's] most substantial partnership in the enterprise market.” He goes on to suggest IBM's analytics software will be used to analyze content stored on Box's platform, and surface important material.
- Forrester's Cheryl McKinnon: "It ups [Box's] street cred on targeting the enterprise ... They now have access to a whole range of enterprise-grade capabilities that IBM brings on the transactional side of the house -- analytics, case management, workflow, [business process management]. For IBM, it is integration of lighter-weight document services for a new generation of email. They are looking for that fast, agile way of working."
Wed, Jun. 24, 9:13 AM
Wed, Jun. 24, 8:25 AM
- IBM is partnering with enterprise cloud storage, file-syncing, and collaboration software vendor BOX to integrate Box's software and services with many of IBM offerings.
- Among the specifics: 1) Box will be integrated with IBM's content management and enterprise social networking software. 2) The companies will make Box's content accessible to the cloud-based Watson Analytics platform. 3) Box will enable joint clients to store content via IBM's cloud infrastructure. 4) IBM's security technologies will be used to expand Box's security offerings. 5) Box/IBM will develop content management solutions for, and integrate Box's technology with, the iOS apps IBM developed with Apple.
- The alliance fills a hole in IBM's product line - though offering standard cloud storage services, Big Blue didn't have a platform for enterprise workers similar to Box's. For Box, the deal expands the company's ecosystem and gives it a partner with huge enterprise and channel reach. It follows a narrower deal with rival Microsoft that focused on Office integration.
- BOX +5.4% premarket to $18.50.
Tue, Jun. 16, 12:37 PM
- Going forward, Box (BOX +3.6%) clients will be able to "browse, open and edit Office Online files directly from Box, as well as automatically save all changes made in Office Online back to Box in real-time." By doing so, they'll be able to leverage Box's collaboration tools and security/compliance features while working on Office files.
- Box has already worked with Microsoft (NASDAQ:MSFT) to allow files stored via Box to be opened via Microsoft's PC and mobile Office apps, and to be saved back to the cloud once a user is finished. The integration work comes in spite of the fact Box competes with Microsoft's SharePoint collaboration platform and OneDrive cloud storage platform; unlimited OneDrive storage is provided to Office 365 subs.
- Microsoft also has an Office integration deal with Dropbox. “We are company agnostic when it comes to who we integrate with,” says Microsoft exec Jared Spataro.
- Box has caught a bid on the news. Shares jumped last week in response to Box's FQ1 beat and FQ2/FY16 guidance, but soon gave back their gains.
Thu, Jun. 11, 9:17 AM
Wed, Jun. 10, 4:34 PM
- In addition to beating FQ1 estimates, BOX is guiding for FQ2 revenue of $69M-$70M (above a $67M consensus) and FY16 (ends Jan. '16) revenue of $286M-$290M (above a $283.4M consensus).
- Also: After slowing to 33% in FQ4, Box's billings rose 58% Y/Y in FQ1 to $69.8M (compares with revenue of $65.6M, +45%). Lifting billings: Over 2K customers were added, up from FQ4's 1K+ and bringing the base above 47K.
- Op. margin was -50% vs. guidance of -56% to -58%. FQ2 and FY16 op. margin guidance is at -49% to -51%.
- Business metrics: Paid customers now include over 51% of the Fortune 500 and 27% of the Global 2000 (or some departments within those companies); the Global 200 count is up from 22%+ a quarter ago. Registered users have topped 37M, with paid users up 70% Y/Y and now accounting for over 10% of total users.
- Financials: Gross margin fell 40 bps Y/Y to 79.3%. GAAP operating expenses rose 29% Y/Y to $95.1M, thanks partly to a $7M increase in stock compensation spend (boosted by the IPO) - sales/marketing spend totaled $56.5M (equal to 86% of revenue), G&A $15.5M, and R&D $23.1M. The deferred revenue balance rose 3% Q/Q to $124.1M.
- Box's cash balance fell to $284M from $330.4M at the end of FQ4. However, op. cash flow improved to -$7.2M from FQ4's -$15.6M. Debt stood at $40M.
- Shares have jumped to $19.45 AH.
- FQ1 results, PR
Box Inc provides a cloud-based, mobile-optimized Enterprise Content Collaboration platform that enables organizations of all sizes to easily and securely manage content and collaborate internally and externally.
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