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Box (BOX)

  • Wed, May 27, 11:11 AM
    • BOX states the DOJ has "awarded Box a contract to securely manage agency information, increasing productivity and improving mission outcomes." The company will receive an agency Authorization to Operate this week.
    • The DOJ will use Box's cloud storage/file-syncing platform to simplify collaboration between its agencies and third parties, to support mobile/offline content access, and to eliminate its "fragmented" content/document management tools.
    • The deal acts as a nice reference win for Box, which has argued its security/compliance features act as a differentiator relative to the aggressively-priced offerings of cloud giants. FQ1 results arrive on June 10.
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  • Tue, Apr. 21, 10:42 AM
    • BlackBerry (BBRY -0.3%) is buying WatchDox, provider of an enterprise file-sharing/syncing platform that emphasizes security. Israel's Globes reports the purchase price is $100M; Geektime reports it's $150M.
    • With the help of DRM, WatchDox's platform provides "full visibility and control over how files are edited, copied, printed or forwarded" across PCs and mobile devices, and lets companies remotely revoke access to or delete files. Hollywood studios looking to keep scripts from leaking are among the company's clients. Its HQ is in Palo Alto; R&D facilities are in Israel.
    • BlackBerry plans to offer WatchDox's solutions, which can be used in on-premise, public cloud, and hybrid cloud deployments, as a value-added service that complements BES12. The deal follows the December launch of BlackBerry's $6/user/month Secure Productivity bundle.
    • Major enterprise cloud storage/file-sharing platform owner Box (BOX -0.9%) is a notable rival. Box, which says it has sold to over 22% of the Global 2000, recently launched a key management service meant to give clients direct control over the encryption of data stored on Box's platform. It has also bought secure browser developer Subspace.
  • Wed, Apr. 1, 3:14 PM
    • With the Nasdaq down 0.8%, only a handful of tech companies are posting big gains. Notable gainers include search toolbar/mobile ad provider Perion (PERI +4.2%) , low-end Android OEM InfoSonics (IFON +7.1%), and Chinese mobile app developer Sungy Mobile (GOMO +8.2%).
    • Notable decliners include local reviews leader Yelp (YELP -4.6%), cloud IT service management software vendor ServiceNow (NOW -4.5%), cloud talent management software vendor Cornerstone OnDemand (CSOD -4%), enterprise cloud storage/file-sharing platform Box (BOX -5.5%), software analytics tool provider New Relic (NEWR -5.9%), online family care marketplace marketplace (CRCM -5%), and e-commerce software provider Demandware (DWRE -4.9%).
    • Perion announced this morning it has added Mike Vorhaus, president of consulting firm Magid Advisors, to its board. ServiceNow has announced its Q1 report will arrive on April 16. Yelp, which has been volatile in recent weeks, is now just slightly over $3 above a 52-week low of $42.10. is less than $1 away from a post-IPO low of $6.50.
    • Previously covered: Solar stocks, cybersecurity stocks, Axcelis, GoDaddy, ON Semi, Voltari
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  • Sun, Mar. 29, 4:29 PM
    • "We were a little bit surprised [by the criticism] because we had raised a significant amount of venture capital. Clearly that was being spent on growing the business pretty rapidly," says BOX CEO Aaron Levie in a talk with TechCrunch, defending his company's huge pre-IPO spending against its many critics. "We were coming off a year of over 100 percent growth, so the investments were working."
    • For many quarters prior to Box's IPO, the company's sales/marketing spend was single-handedly bigger than its revenue. In the January quarter, it was still 88% of revenue on a GAAP basis; Box has guided for its FY16 (ends Jan. '16) non-GAAP op. loss to be equal to 50%-52% of revenue.
    • Regarding future spending plans, Levie names content management, collaboration, and security as areas Box plans to focus R&D investments on. The company recently launched an enterprise key management (EKM) service that lets clients control the encryption of data stored on Box's cloud storage/file-sharing platform.
    • Levie asserts the service (in addition to providing a new revenue stream) allows Box to meet the security needs of companies in healthcare, financial services, and other heavily-regulated industries that were previously nervous about putting their data on Box's servers. That might also hold for international companies worried about U.S. government requests.
    • Box closed on Friday 31% above its $14 IPO price, but 9% below an opening price of $20.20. Shares trade for 9x trailing billings, and perhaps (given recent growth rates) 6-7x forward billings.
    • Previously: Levie makes long-term case for Box following IPO
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  • Thu, Mar. 12, 12:45 PM
  • Thu, Mar. 12, 9:14 AM
  • Wed, Mar. 11, 5:36 PM
    • Top gainers, as of 5:15 p.m.: SCLN +11.0%. ZOES +4.1%. AMRN +3.6%. MW +3.6%. MS +3.3%.
    • Top losers, as of 5:15 p.m.: ACAD -21.0%. BOX -16.2%. PQ -13.7%. KKD -7.0%. SHAK -6.1%.
  • Wed, Mar. 11, 4:33 PM
    • BOX's billings grew 33% Y/Y in FQ4 to $82M. That's markedly slower than revenue growth of 61% (to $62.6M), and also below the 46% growth seen over the first 9 months of FY15.
    • Top-line guidance (possibly conservative, given the guidance history of peers) is strong: FQ1 revenue of $63M-$64M vs. a $61.8M consensus, and FY16 (ends Jan. '16) revenue of $281M-$285M vs. a $276.9M consensus. But op. loss is still expected to equal 56%-58% of FQ1 revenue and 50%-52% of FY16 revenue, after amounting to 79.5% of revenue in FY15.
    • Hurting EPS: GAAP operating expenses rose 33% Y/Y to $93.8M, thanks in part to a $5.4M increase in stock compensation spend (IPO-related). Sales/marketing spend (often criticized) rose 18% to $55.4M (equal to 88% of revenue); R&D rose 33% to $18M, and G&A 100% to $20.4M.
    • Box ended FQ4 with 45K+ paid customers, up slightly from 44K+ at the end of FQ3. Paid customers are said to include over 22% of the Global 2000. With billings outpacing revenue, the deferred revenue balance rose 33% Y/Y to $120.1M.
    • Shares have fallen to $17.88 AH.
    • FQ4 results, PR
    • Update (5:10PM ET): On the CC, CEO Aaron Levie states FQ4 EPS would've beat consensus by $0.34 (rather than missed by $0.48) if not for an incorrect estimate. The remarks haven't helped Box's shares: They're now down 16.5% AH.
  • Wed, Mar. 11, 4:17 PM
    • Box (NYSE:BOX): FQ4 EPS of -$1.65 misses by $0.48.
    • Revenue of $62.64M (+61.4% Y/Y) beats by $4.65M.
    • Shares -10.8%.
    • Press Release
    • Update: Box says EPS would've beat by $0.34 if not for an inaccurate estimate.
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  • Tue, Mar. 3, 4:45 PM
    • BOX has acquired Subspace, developer of a secure browser (based on the open-source Chromium project that Google Chrome relies on) for accessing corporate data and cloud apps. Terms are undisclosed.
    • Though Box praises Subspace's technology, the purchase has elements of an acqui-hire: Subspace will shut down its operations next month, and its employees will "help extend the security, compliance and control features of Box's content and collaboration platform to any device used to access data." Subspace CTO Ben Kus has been named Box's director of security product.
    • Among other things, Subspace's team will help make Box's Information Rights Management solution (supports preview-only content access and watermarking) applicable to any kind of content., including material accessed by partners and remote workers.
    • Last month, Box announced the purchase of cloud software monitoring startup Airpost.
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  • Mon, Feb. 23, 1:07 PM
    • Box (BOX -1.7%) has acquired Airpost, a Canadian developer of software that automatically discovers cloud app usage by a company's employees, and allows the company to implement controls and safeguards. Terms are undisclosed.
    • Airpost: "By joining the Box team, we have the opportunity to provide security and enablement on an even larger, global scale. Box is at the forefront of secure content collaboration in the enterprise, and we share a common vision for bringing user-driven products that increase productivity securely to the enterprise."
    • Box has argued its support for advanced security and compliance features (along with its ecosystem and consumer-friendly UI) help differentiate its cloud storage/file-sharing platform from the aggressively-priced offerings of tech giants.
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  • Wed, Feb. 18, 4:00 PM
    • A San Francisco federal court has ruled Box (BOX -5.4%) and government IT services provider Carahsoft infringe three Open Text (OTEX -1.7%) patents via the sale of Box Edit (an add-on feature for Box's platform that enables file-creation/editing). Box Edit's Windows, Mac, and Android apps were all ruled to have infringed.
    • Open Text has been awarded nearly $5M in damages. However, the content management software giant originally sought $268M for the alleged infringement of 12 patents.
    • Separately, Box has announced its FQ4 report (its first earnings report as a public company) will arrive after the close on March 11; consensus is for revenue of $58.9M and EPS of -$1.45. Shares have added to the Tuesday losses seen after most IPO underwriters launched coverage with neutral ratings.
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  • Tue, Feb. 17, 10:30 AM
    • 7 of the 8 firms launching coverage on Box (BOX -2.6%) following the end of its underwriter quiet period have provided neutral writing, generally citing valuation as their reason for doing so.
    • Though launching coverage at Neutral due to the company's multiples, JPMorgan praises "Box's differentiated focus on rich and complex features for corporate IT departments, spanning security, compliance, workflow and auditing."
    • Morgan Stanley (Equal-Weight) predicts "a growing enterprise ecosystem will offset competitive pressures over time," but also considers a current enterprise value of 7x 2016E sales fair in light of "near-term limits on growth and margins."
    • Credit Suisse (Outperform) is the sole firm to give Box a bullish rating, arguing the company offer a better enterprise file-syncing/sharing platform than top rival Microsoft, and that it "has sufficient lead time to further improve its competitive position and expand its user base."
    • Speaking of Microsoft (NASDAQ:MSFT), Box has announced it's joining Citrix and Salesforce as initial members of the software giant's Cloud Storage Partner Program. The deal allows Box's services to be integrated with the Office iOS apps, and more deeply connected to Office Online. Box/Office 365 integration already exists, as does a partnership between Microsoft and Dropbox.
    • Previously: Box CEO makes long-term case
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  • Mon, Feb. 9, 2:55 PM
    • Today's notable tech gainers include 3D printer maker ExOne (XONE +6%), data center switch vendor Arista (ANET +4.2%), solar microinverter maker Enphase (ENPH +6.1%), ID theft-protection services firm LifeLock (LOCK +6.8%), voice processor developer Audience (ADNC +10.3%), contract manufacturer Multi-Finline (MFLX +10.2%), and cloud file-sharing platform/recent IPO Box (BOX +9.1%).
    • Notable decliners include flash storage array vendor Violin Memory (VMEM -5.6%), ultracapacitor maker Maxwell (MXWL -6.3%), SMB Web services provider (WIX -4.8%), salvage auction site Liquidity Services (LQDT -5.4%), and carrier billing software/cloud services provider Synchronoss (SNCR -5.6%). The Nasdaq is down 0.3%.
    • LifeLock reports earnings tomorrow afternoon. Audience is four days removed from beating Q3 estimates and offering in-line guidance. Arista is reversing its Friday's losses, and Box is adding to the Friday gains that came after a positive Jim Cramer mention.
    • Synchronoss is adding to the losses seen last week after the company offered cautious 2015 cloud revenue guidance to go with a Q4 beat, and Maxwell to the losses seen due to the soft Q1/2015 guidance provided with a Q4 beat. Liquidity is giving back some of last week's huge post-earnings gains. Wix reports on Wednesday morning.
    • Earlier: GoPro, Yelp see more post-earnings pain
    • Earlier: Chinese solar stocks rally
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  • Fri, Feb. 6, 12:03 PM
    • "I said to buy it for the IPO, we got a great trade. It has now come back to a level where I want to buy it again," said Jim Cramer about BOX during the Lightning Round portion of yesterday evening's Mad Money episode.
    • Shares have soared a day after making new post-IPO lows. 2.6M have been traded thus far.
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  • Thu, Feb. 5, 8:02 PM
    • Following today's 2.6% drop in regular trading, BOX is down 28% from its first-day close of $23.23, and up only 19% from its $14 IPO price. A healthy 2.5M shares were traded today.
    • Philippe Laffont's Coatue Management is a believer in the enterprise cloud storage/file-syncing firm: The hedge fund recently disclosed a 10% stake.
    • Prior Box coverage
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Company Description
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.
Sector: Technology
Country: United States