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  "documentTitle": "Box, Inc. (BOX)",
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  "authorName": "Starboard Value",
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  "presentationDate": "2021-08-06 00:00:00",
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  "notes": "Uses a dual-column layout to contrast margin performance vs growth performance.",
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      "kind": "callout",
      "text": "Issuing 20% of revenue in equity while growing 10% is not sustainable",
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      "text": "Revenue Growth Over Time: 39.9% to 10.1%",
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      "text": "FY2021 Operating Margin: 15.4% vs (4.6%)",
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      "text": "Failed to Reinvigorate Growth; Furthermore, Box has completely failed to uphold commitments to re-accelerate revenue growth. Box has missed on a number of key metrics: Net Retention Rate Target: Missed; Large Deal Growth Target: Missed; Sales Force Productivity Improvement Target: Missed; Long-Term Revenue Targets: Missed",
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      "text": "Focus Only on Non-GAAP Metrics; Following our urging and insistence, Box has made improvements to its operating margin and generated 15% non-GAAP operating margins last year. However, after deducting stock-based compensation (“SBC”), Box is still unprofitable. Stock-based compensation remains at 20% of revenue despite revenue growing only ~10%. Stock-based compensation as a percentage of market cap is twice the peer median.",
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      "text": "Revenue Growth: 10.1%",
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      "kind": "paragraph",
      "text": "Despite margin improvement, growth continues to decelerate while exorbitant equity issuance and compensation issues continue to plague the Company.",
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      "kind": "source-note",
      "text": "Source: Company filings, Capital IQ, Bloomberg. Note: Market data as of 8/4/21.",
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      "kind": "title",
      "text": "Since Then, Under Severe Pressure, Box Has Addressed Some Opportunities, But Significant Issues Remain",
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