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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 CEO/CFO quote to establish the expectation that was not met.",
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      "text": "Gross margin contracted during a period of improving revenue mix",
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      "text": "Revenue Mix Over Time (FY2019 vs FY2021)",
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      "text": "Non-GAAP Gross Margin %: 73.3%",
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      "text": "Box now generates nearly 60% of its revenue from customers with one or more add-on products. These customers generate gross margins that are approximately 1,000bps higher than do customers who only purchase core Box.",
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      "text": "We will improve gross margin by optimizing our data center footprint... We also expect more of our business to come from add-on products, which will naturally drive higher margins.",
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      "text": "“We will improve gross margin by optimizing our data center footprint, public cloud infrastructure and the cost to serve our customers. In addition to the data center migration that we've discussed over the past year, we'll be driving efficiencies in various aspects of delivering our service such as storage, search and conversion. We also expect more of our business to come from add-on products, which will naturally drive higher margins.” — CFO Dylan Smith, Q3 FY2020 Earnings Call",
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      "text": "Sources: Box Investor Day Presentation, Capital IQ. Note: Emphasis has been added by Starboard.",
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      "text": "Revenue Mix Should Have Been A Tailwind",
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