Box, Inc.

The effectiveness of Box’s Content Cloud strategy was manifested in its last result as it reported a sales increase of 15% year over year in the second quarter surpassing Wall Street expectations. The company also delivered an earnings beat. Box’s Content Cloud strategy looks to unify the whole content life cycle on a single platform. Their strategy is in line with the three main trends, including hybrid work styles, the urgent need to digitally transform every business process, and the ongoing pressures on all enterprises to maintain data security, compliance, and privacy. Besides, the company launched more features for Box Relay, Box Sign, and API improvements in Q2. These features are a part of the Box core subscription and bundles, giving consumers access to new Box Platform value right now and further upside if they upgrade to higher tier plans for more features. Lastly, the rapid uptake of the company’s multiproduct offers has improved sales process efficiency, boosted total account value and net retention, and raised gross margins. We give Box a ‘Hold’ rating with a revised target price.