{ "docId": "019dd923-622b-71dc-a6da-20e710622d80", "docSlug": "0ffe179c4c4e", "documentTitle": "Box, Inc. (BOX)", "authorId": "03_Starboard_Value", "authorName": "Starboard Value", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2021-08-06 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 12, "pageCount": 184, "prevPage": 11, "nextPage": 13, "slideType": "quote_slide", "function": "cite_precedent", "density": "dense", "nDataPoints": 2, "notes": "The slide uses a pull-quote from a third-party analyst to validate the activist's thesis.", "elementsJson": [ "headline_text", "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6da-20e710622d80/12", "deckHref": "/decks/019dd923-622b-71dc-a6da-20e710622d80", "deckJsonHref": "/decks/019dd923-622b-71dc-a6da-20e710622d80.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6da-20e710622d80#slide-12", "components": [ { "bbox": null, "kind": "callout", "text": "Part of the reason we struggle to underwrite Box's story of accelerating growth and expanding margins is the fact that Box has discussed initiatives to accelerate growth in the past, but not delivered on it, and has had several different target models, consistently needing to walk them back...", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-e6ee-7118-870d-218937dcc282", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.92, "x": 0.04, "y": 0.15 }, "kind": "paragraph", "text": "Today, there continues to be significant frustration with Box’s performance and a lack of belief in Box’s ability to improve results.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4914cf2d-ded9-404a-979c-29f7ad2c2f97", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.55, "w": 0.84, "x": 0.08, "y": 0.24 }, "kind": "quote", "text": "While Box was once one of the fastest-growing companies in software (70% growth at $225M+ in ARR at IPO), growth has dramatically decelerated, even prior to COVID. Growth did improve in the most recent quarter (with some COVID headwinds fading), but we do not believe Box will be able to sustain double-digit growth and find its FY24 12%-16% revenue growth target difficult to underwrite... Part of the reason we struggle to underwrite Box’s story of accelerating growth and expanding margins is the fact that Box has discussed initiatives to accelerate growth in the past, but not delivered on it, and has had several different target models, consistently needing to walk them back... Based on our due diligence, we do believe that Box has competitively differentiated technology for content management at the enterprise end of the market and like the company’s vision but take the view that a mixture of competitive pressures (namely OneDrive) and an underperforming GTM motion are the primary contributors to the company’s underwhelming execution. Additionally, considering the nature of Box’s solutions, if the rise of remote work and digital transformation trends haven't yet translated into an improved environment for the company we are not sure what Box needs to see to start executing.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7b692a21-b282-4dac-a9cf-9af8e0769849", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"While Box was once one of the fastest-growing companies in software (70% growth at $225M+ in ARR at IPO), growth has dramatically decelerated, even prior to COVID. Growth did improve in the most recent quarter (with some COVID headwinds fading), but we do not believe Box will be able to sustain double-digit growth and find its FY24 12%-16% revenue growth target difficult to underwrite... Part of the reason we struggle to underwrite Box's story of accelerating growth and expanding margins is the fact that Box has discussed initiatives to accelerate growth in the past, but not delivered on it, and has had several different target models, consistently needing to walk them back... Based on our due diligence, we do believe that Box has competitively differentiated technology for content management at the enterprise end of the market and like the company's vision but take the view that a mixture of competitive pressures (namely OneDrive) and an underperforming GTM motion are the primary contributors to the company's underwhelming execution. Additionally, considering the nature of Box's solutions, if the rise of remote work and digital transformation trends haven't yet translated into an improved environment for the company we are not sure what Box needs to see to start executing.\" — RBC Capital Markets, July 2021", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-e6ee-7118-870d-25fcaf74f80e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.25, "x": 0.02, "y": 0.95 }, "kind": "source-note", "text": "Source: Wall Street research.\nNote: Emphasis has been added by Starboard.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "33150de7-fa62-4a76-95f3-bfa1b95cb6ce", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.15, "x": 0.75, "y": 0.82 }, "kind": "source-note", "text": "- RBC Capital Markets\nJuly 2021", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d38c5ac3-ca1b-4b82-b45a-17a77df0375e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.6, "x": 0.04, "y": 0.07 }, "kind": "title", "text": "Box Continues to Disappoint Today", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3705723a-4ed4-4a90-9075-8dca5d2bda5d", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "authority-citation", "slug": null, "matchId": "52f00304-1b59-45a0-b8ac-13b7561b30ca", "evidence": "Uses RBC Capital Markets report to validate thesis", "confidence": 1 } ], "arcBeats": [ { "to": 14, "from": 9, "beatId": "9ef3b926-fb43-4056-9e6b-103f05446b90", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Expose Contradiction", "beatSlug": null, "evidence": "The deck exposes contradictions between Box's stated goals and actual performance, highlighting areas for improvement.", "position": 1, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }