We’re gonna need a bigger BoxSoftware company Box is seeing its business boom after an activist investor fight came to an end.
🔍 Key points:
- Cloud company Box has hiked its annual forecast. The content management software firm now expects annual revenue growth of up to 17% in 2025 as it works to drive increased sales and improve its margins – current fiscal year sales are set to see growth of 14%.
- It comes just after a sour internal proxy fight with an activist investor. Starboard Value bought a 7.5% stake in Box in 2019, and soon after started calling for Box CEO Aaron Levie to resign or seek a potential buyer for the company through several proxy filings.
- It all ended in a bitter boardroom battle last year. Turns out Box shareholders rather liked Levie and voted to re-elect him as CEO. Box compromised by allowing Starboard to assign 2 new directors, and the new team dynamic seems to be working considering shares are trading only $3 away from their ATH of $29.
Milad Fakurian / Unsplash
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Opening a box of Q4 tricksCloud storage and document management provider Box pops open its lid, and the contents cause much excitement for investors.
- Prices rallied 6% in extended trading on Wednesday after smashing both the top and bottom lines with EPS of $0.24 on revenues that were up 17% y-o-y to hit $233.4m
- CEO Aaron Levie said there are three megatrends that have most boosted the business this quarter: hybrid work, digital transformation, and increased business focus on cybersecurity and compliance.
- Guidance was the cherry on top. Box is projecting current quarter revenue growth of 16% to hit $235m, and the full year is set to see growth of 14%. Levie said the business has been re-energized by its expansion from simple document storage to becoming a “content cloud”.
Yash Bindra / Unsplash