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1. Company Snapshot

1.a. Company Description

Box, Inc.provides a cloud content management platform that enables organizations of various sizes to manage and share their content from anywhere on any device.The company's Software-as-a-Service platform enables users to collaborate on content internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security, and compliance features to comply with legal and regulatory requirements, internal policies, and industry standards and regulations.


It offers web, mobile, and desktop applications for cloud content management on a platform for developing custom applications, as well as industry-specific capabilities.As of January 31, 2022, the company had approximately 100,000 paying organizations, and its solution was offered in 25 languages.It serves financial services, health care, government, and legal services industries in the United States and internationally.


The company was formerly known as Box.net, Inc.and changed its name to Box, Inc.in November 2011.


Box, Inc.was incorporated in 2005 and is headquartered in San Francisco Bay Area, California.

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1.b. Last Insights on BOX

Box, Inc.'s recent performance was negatively impacted by its Q3 earnings report, which showed a drop in earnings despite meeting estimates. The company's guidance for fiscal 2026 was also below analyst expectations. Rising costs and pressure on margins have been a concern, with a sharp earnings drop. However, the company has seen strong revenue growth, with a 9% increase in Q3. Box's shift towards AI-driven content infrastructure and new partnerships may support long-term value creation. (Source: Marketbeat Ratings)

1.c. Company Highlights

2. Box's Q3 FY2026 Earnings: Strong Growth Driven by AI Adoption

Box, Inc.'s third-quarter fiscal 2026 revenue was $301 million, a 9% year-over-year growth, with operating margins of 28.6%. The company's gross margin was 81.7%, and operating income was $86 million. EPS was $0.31, in line with estimates. Billings grew 12% year over year to $296 million, and remaining performance obligations (RPO) grew 18% year over year to $1.5 billion. The company has more than 2,000 customers paying at least $100,000 annually, up 7% year over year. Box generated free cash flow of $61 million and ended the quarter with $731 million in cash and short-term investments.

Publication Date: Dec -04

📋 Highlights
  • Revenue & Growth:: Q3 revenue reached $301 million (9% YoY growth), with operating margins at 28.6%.
  • Net Retention & Billings:: Net retention rate of 104% driven by pricing and seat expansion; billings grew 12% to $296 million.
  • RPO & Cash Position:: Remaining performance obligations hit $1.5 billion (18% YoY), and cash reserves totaled $731 million.
  • Customer Base Expansion:: Over 2,000 customers pay $100K+ annually (7% YoY increase).
  • AI-Driven Growth:: Enterprise Advanced and AI tools like Box Extract are accelerating adoption, with Q4 launch expected to boost automation use cases.

AI-Powered Growth

The company is seeing strong demand for its enterprise-grade AI capabilities, driving momentum in Enterprise Plus and Enterprise Advanced. CEO Aaron Levie noted that all growth levers outlined at the March Analyst Day are tracking well, with adoption of Enterprise Advanced and AI capabilities exceeding expectations. The company is seeing an acceleration in top-line metrics, driven by demand for Box AI and adoption of Enterprise Advanced. Levie believes that enterprises are nearing an inflection point in overcoming barriers to AI adoption, with customers looking to extract data from unstructured content and automate workflows.

Seat Growth and Pricing

In terms of seat growth, Levie noted that the company is seeing strength in both pricing and seat expansion, with Enterprise Advanced driving an improvement in net seat growth. He expects continued strength in seat dynamics, driven by AI-enabled workflows expanding seats. The company's net retention rate was 104%, driven by price per seat increases and seat expansion.

Valuation and Outlook

Box's P/E Ratio is 20.43, and its P/S Ratio is 4.05, indicating a premium valuation. However, the company's strong growth prospects, driven by AI adoption, may justify this premium. Analysts estimate next year's revenue growth at 7.8%. For Q4, the company expects revenue of approximately $304 million and operating income of $87 million. For the full year, Box expects revenue of $1.15 billion and operating margins of 28%. The company's focus on driving the adoption of its AI-powered solutions, particularly Enterprise Advanced, is expected to drive growth and increase its addressable market.

Investment Priorities

The company is focusing on growing its Salesforce, with an emphasis on verticalization and industry-specific expertise. The partner SI ecosystem and high ROI marketing programs are also key areas of investment. The company plans to continue investing in go-to-market initiatives, with a goal of moderate operating margin expansion, and remains committed to its long-term target model.

3. NewsRoom

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From Missteps to Momentum: Jack in the Box's Comeback Plan

Feb -21

Source: marketbeat.com

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Beyond the Box: How FedEx Is Winning as Tech Slumps

Feb -20

Source: marketbeat.com

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A Matcha Made in Heaven: Jack in the Box Launches Matcha Beverage Lineup Nationwide

Feb -19

Source: businesswire.com

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Jack in the Box Inc. Reports First Quarter 2026 Earnings

Feb -18

Source: businesswire.com

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Amazon Plans Second Big-Box Store Near Chicago

Feb -17

Source: pymnts.com

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Shareholders Cannot Afford to Allow Chairman David Goebel to Remain as a Director at Jack in the Box – Asserts Biglari Capital

Feb -13

Source: globenewswire.com

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D-BOX Reports Strong Third Quarter with $2.7 Million Net Profit Before Income Taxes on $3.1 Million of Royalties

Feb -10

Source: globenewswire.com

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Jack in the Box Brings Back the Hot Mess Burger as a Limited-Time Throwback Classic for Its 75th Anniversary

Feb -10

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.10%)

6. Segments

Internet Software & Services

Expected Growth: 8.0%

The cloud content management market is expected to grow rapidly, driven by increasing demand for digital transformation and collaboration tools. Box is well-positioned to benefit from this trend, with a strong platform and growing customer base. As a result, we expect revenue growth to exceed the global average, driven by increasing adoption of cloud-based content management solutions.

7. Detailed Products

Content Cloud

A cloud-based content management platform that enables users to store, share, and collaborate on files and content

Box Platform

A cloud-based platform that enables developers to build custom applications and integrations with Box's content management capabilities

Box Governance

A cloud-based governance platform that enables organizations to manage and retain electronic records and content

Box Relay

A cloud-based workflow automation platform that enables users to automate business processes and workflows

Box Shield

A cloud-based security platform that enables organizations to detect and respond to security threats and data breaches

Box Sign

A cloud-based electronic signature platform that enables users to sign and send documents electronically

8. Box, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Box, Inc. faces moderate threat from substitutes due to the presence of alternative cloud storage and collaboration tools such as Google Drive, Microsoft OneDrive, and Dropbox.

Bargaining Power Of Customers

Box, Inc. has a large customer base, but individual customers do not have significant bargaining power due to the company's diversified customer base and the lack of dependence on a single customer.

Bargaining Power Of Suppliers

Box, Inc. has a diversified supplier base, and no single supplier has significant bargaining power over the company.

Threat Of New Entrants

The cloud storage and collaboration market is highly competitive, and new entrants can easily enter the market, posing a significant threat to Box, Inc.'s market share.

Intensity Of Rivalry

The cloud storage and collaboration market is highly competitive, with many established players such as Microsoft, Google, and Dropbox, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 86.69%
Debt Cost 3.95%
Equity Weight 13.31%
Equity Cost 8.22%
WACC 4.52%
Leverage 651.51%

11. Quality Control: Box, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Box

A-Score: 5.0/10

Value: 2.6

Growth: 8.0

Quality: 7.4

Yield: 0.0

Momentum: 3.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
AvidXchange

A-Score: 4.5/10

Value: 3.6

Growth: 6.4

Quality: 5.6

Yield: 0.0

Momentum: 4.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Shift4 Payments

A-Score: 4.2/10

Value: 4.2

Growth: 9.4

Quality: 5.1

Yield: 0.0

Momentum: 2.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
UiPath

A-Score: 4.0/10

Value: 1.7

Growth: 7.2

Quality: 7.8

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
SPS Commerce

A-Score: 3.6/10

Value: 2.0

Growth: 8.1

Quality: 7.8

Yield: 0.0

Momentum: 0.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
SentinelOne

A-Score: 3.3/10

Value: 5.1

Growth: 6.7

Quality: 3.4

Yield: 0.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.78$

Current Price

21.78$

Potential

-0.00%

Expected Cash-Flows