1. Overview
Box, Inc. (BOX) is a public company specializing in cloud-based content management, collaboration, and file-sharing solutions for businesses. Founded in 2005 by Aaron Levie and Dylan Smith in Washington state, it initially targeted consumers but pivoted around 2009 to enterprise clients. Headquartered in Redwood City, California, Box provides secure file storage, workflow automation, and integration with major enterprise applications. It went public in 2015 and has raised about $500 million in funding prior to its IPO . The company is recognized for its emphasis on security, compliance, and enterprise-grade collaboration features.
2. Recent Earnings
Most Recent Quarter (Q2 Fiscal Year 2026): Aug 26, 2025
- EPS (non‑GAAP): $0.33 — beat estimates by $0.02 (consensus: $0.31)
- Revenue: $294 million — up ~9% YoY, topping expectations of ~$290 million
- Guidance for Q3 FY2026:
- Revenue: $298–299 million (≈8% YoY growth)
- GAAP EPS: $0.05–0.06; non‑GAAP EPS: $0.31–0.32
- Full Year FY2026 Guidance:
- Revenue: $1.170–1.175 billion (≈8% growth)
- GAAP EPS: $0.18–0.20; non‑GAAP EPS: $1.26–1.28
3. Company Background
Box was founded in 2005 by Aaron Levie and Dylan Smith (alongside early cofounders Jeff Queisser and Sam Ghods) and launched as Box.net . The company raised successive funding rounds: seed money from Mark Cuban, Series A in 2006, Series B in 2008, and larger investments through 2014 — ultimately going public on the NYSE in 2015 and moving HQ to Redwood City in 2016 . Over the years, Box has acquired multiple companies (e.g., Butter.ai, Tervela, SignRequest, Crooze, Alphamoon) to bolster search, AI, e‑signatures, and intelligent document processing capabilities . Its headquarters is in Redwood City, CA. Key competitors include Dropbox, Microsoft, Google, OpenText, and others in the cloud content management arena .
4. Market and Growth Outlook
Box operates in the enterprise content management (ECM) and cloud collaboration market—a segment shaped by digitization, remote working, security, and AI integration. While specific CAGR or 2030 forecasts aren’t available from these results, Box’s ~9% YoY revenue growth in Q2 indicates healthy momentum . The global ECM market is expected to continue expanding, driven by rising demand for secure, compliant digital workflows and AI-enhanced document intelligence—areas where Box is increasingly active.
5. Competitors
Key competitors: Dropbox, Microsoft (Microsoft 365/OneDrive), Google (Google Workspace), OpenText, and others like MongoDB, Okta, Twilio for overlapping enterprise services . Dropbox has ~$2.5B in revenue, OpenText ~$5.8B, while Microsoft and Google overshadow all with hundreds of billions in revenue .
6. Unique Differentiation
Box distinguishes itself via enterprise-grade security and compliance (e.g., HIPAA, FedRAMP), deep integration with business software ecosystems, and advanced AI and workflow automation (e.g., Enterprise Advanced platform, AI workflows) . Its focus on secure content collaboration tailored for regulated industries sets it apart from more general-purpose competitors.
7. Management Team
- Aaron Levie – CEO and cofounder
- Dylan Smith – CFO and cofounder
- Bethany Mayer – Chairperson These members bring deep institutional knowledge and strategic vision aligned with enterprise content and cloud evolution.
8. Financial Performance (Last 5 Years)
- Revenue Growth: TTM revenue ~$1.13B with quarterly YoY growth ~8.9% .
- Earnings & Profitability: Q2 non‑GAAP operating margin at ~28.6%, gross profit margin ~81%, operating income ~$84M, net retention ~103% .
- CAGR (approximate): While exact 5-year CAGR isn’t provided, consistent ~8–9% quarterly growth implies a mid-to-high single-digit annual CAGR.
- Balance Sheet & Cash Flow: InvestingPro noted free cash flow and share repurchases (in past analysis), and profitability score at 73/100 with positive gross, operating, and net income .
- Overall, Box demonstrates steady revenue growth, improving margins, and disciplined financial management.
9. Bull Case
- Strong enterprise focus with secure, compliant AI-enhanced workflows.
- Consistent earnings beats and raised guidance.
- Lower P/E relative to peers (25.2x vs peer avg ~32.9x), suggesting potential valuation upside .
10. Bear Case
- Competing with tech giants like Microsoft and Google poses scale and price pressure risk.
- Growth still in single digits, may lag cloud peers in acceleration.
- Valuation is still above its “fair” P/E of ~21.2x .
The stock is in a stage 2 markup bullish on the monthly chart and is in a bearish stage 4 decline on the weekly and daily charts. The near term support is in the $30 range, and should get to $28 as well. We are not interested in the stock.