BOX IPO Analysis

Box Basic Info

Exchange: NYSE

Proposed Symbol: BOX

State of Inc: DE

Offer Amount: $187 mm

Employees: 1131

CEO: Aaron Levie

IPO Date: 1/23/15

Price Range: $11-13

Shares offered: 12.5 mm

Description from S-1: “Box provides a cloud-based, mobile-optimized Enterprise Content Collaboration platform that enables organizations of all sizes to easily and securely manage their content and collaborate internally and externally. Our platform combines powerful, elegant and easy-to-use functionality that is designed for users with the security, scalability and administrative controls required by IT departments. We have built our platform to enable users to get their work done regardless of file format, application environment, operating system, device or location. Our paying business customers include more than 48% of Fortune 500 companies and more than 22% of Global 2000 companies, and our over 32 million registered users include employees from 99% of Fortune 500 companies, including companies in highly regulated industries such as healthcare and life sciences, telecommunications, energy and financial services.

From the S-1

Underwriters:

  • Lead Underwriters: JP Morgan (JPM), Credit Suisse (CS), Morgan Stanley (MS)

2014 Sales: $153.8 mm

Sales Growth (’13-’14): 110%

Competitors: Carbonite (CARB), Google (GOOG, GOOGL), Oracle (ORCL), Nimble Storage (NMBL), Citrix (CTXS), Dropbox, Egnyte

Other Notes

  • Box (NYSE: BOX) is a cloud-based software company that makes collaboration and data storage software.
  • Box’s software is cloud-based software, which has been a hot button for institutional and individual investors alike.
  • Box was founded in California in 2005 as a consumer company, then they pivoted in 2007 in order to become more enterprise-oriented.
  • Carbonite (CARB), a competitor to Box, turned down a takeover offer from J2 Global (JCOM), showing strength in the overall sector.
  • Although Box filed their S-1 ~10 months ago, I believe their wait will pay off big. Box has gotten time to grow and mature as a company, and looks very attractive to institutional investors due to their high growth. Overall, I predict the BOX IPO next Friday will be a success, and will have a 50%+ first day pop.
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