Box Said to Project $200 Million in Revenue as IPO Nears
Box Inc., the cloud storage and collaboration company that’s headed for an initial public offering, projects revenue this year to double to more than $200 million, according to people with knowledge of the matter.
The Los Altos, California-based company, which confidentially filed for its IPO earlier this year, is planning to make its prospectus public in the next few weeks, said the people, who asked not to be identified because the plans are still private. That timing could still shift, the people said. Morgan Stanley, Credit Suisse Group AG and JPMorgan Chase & Co. are leading the deal, the people said.
Box, led by 29-year-old Chief Executive Officer Aaron Levie, has been ramping up its sales staff to promote its Web-based sharing software to companies that are shifting to the cloud. The IPO will follow offerings of cloud business software companies including Workday Inc. (WDAY), ServiceNow Inc. and Veeva Systems Inc., which have surged on the public markets.
Reuters reported on the bankers for the IPO in November, and the New York Times’ DealBook reported in January that Box had filed confidentially for its offering.
Michael Moeschler, a spokesman at Box, declined to comment. Jack Grone, a spokesman at Credit Suisse, Tasha Pelio, a spokeswoman at JPMorgan, and Mary Claire Delaney, a spokeswoman at Morgan Stanley, also declined to comment.
Under the Jumpstart Our Business Startups (JOBS) Act signed in 2012, emerging companies can keep their IPO filing confidential until three weeks before the roadshow marketing the deal.
Box was founded in 2005 by Levie and Dylan Smith, while the two were still college students. They raised seed funding from billionaire Mark Cuban that year and then moved the business to Silicon Valley. Box has since raised hundreds of millions of dollars from investors including Draper Fisher Jurvetson, Meritech Capital Partners, Bessemer Venture Partners and Andreessen Horowitz, as well as Salesforce.com Inc.
Bloomberg LP, the parent of Bloomberg News, is an investor in Andreessen Horowitz.
Box is competing with fast-growing startups like Dropbox Inc., as well as some of the world’s biggest technology companies like Microsoft Corp., Google Inc., Apple Inc. and Amazon.com Inc. They’re all vying for users as consumers and employees shift from personal computers to iPads and smartphones. Box is going after industries like manufacturing, finance and media, where employees are sharing documents and data on a multitude of devices.
“Our growth started to rapidly increase in the post-PC era, where these new kinds of applications and new kinds of services became more important than ever,” Levie said at a Bloomberg conference in June.