Cloud Storage Company Box Gears Up For $250 Million IPO

Tech IPOs are becoming increasingly common by each passing year. We have already seen some of them this year and now, enterprise cloud storage company Box has filed for a $250 million IPO.


Box’s case is a curious one – the company has made some substantial revenue last year but it couldn’t return a profit since it has aggressively been investing in many new businesses and to grow the existing ones. Moreover, together with its IPO filing, the company has stated that it doesn’t expect to be profitable in the foreseeable future.

However, the company hopes for good growth in the coming years and with adequate investment, it hopes to disrupt the cloud storage industry. Currently, Box has 25 million users, of which a whopping 93% are non-paying and use its free services. It is from the other 7% of the users, mostly enterprise clients, that Box generates its key revenue.

During the last year, Box bagged a revenue of $124.2 million. However, the overall loss for the period was $168.8 million which reflects somewhat poorly on the company. With the extraordinary growth of the cloud storage arena in the recent years, it is expected that the users of these services will grow exponentially in the near future. This is probably the profitable future that Box is currently eyeing.

Moreover, the $250 million IPO filing means that Box is not shooting for the stars and is simply seekig for a considerably smaller sum. With the investor confidence in tech startups significantly boasted over the last few years, Box’s IPO may well turn out to be a success.

Source: Box IPO Filing

Courtesy: Mashable

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