Box IPO: Why There's Hope For Future Profits

Yesterday, Box filed its long-awaited S-1 registration statement with the SEC, sharing its financial performance with the public for the first time. The start-up has garnered considerable interest over the years, alongside consumer-oriented rival Dropbox. Both companies provide cloud storage services and have put up significant user growth. Box has put a big dent in Microsoft SharePoint's position in the enterprise content collaboration space over the years.

Revenue last year grew 111% to $124 million, while billings similarly soared to $174 million. However, Box posted a net loss of $169 million last year as it invests heavily in sales and marketing to support future growth. The company grew its salesforce by nearly 40% last year to 513 employees, comprising over half of the entire workforce. Fortunately, gross margin has expanded to 79%, giving hope that one day Box will be able to scale to profitability.

In this segment of Tech Teardown, Erin Kennedy discusses Box's financials with Evan Niu, CFA, our tech and telecom bureau chief.

Are you ready for this $14.4 trillion revolution?
Beyond content collaboration, there's a bigger revolution on the horizon. Let's face it, every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC-maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer Amazon.com in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure-play" and then watch as it grows in EXPLOSIVE lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2889837, ~/Articles/ArticleHandler.aspx, 11/26/2014 10:17:58 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement