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  "documentTitle": "Box, Inc. (BOX)",
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  "notes": "Uses a 'PF FY2021' (Pro Forma) column to include Feb 2021 acquisitions in the R&D expense calculation.",
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      "text": "Total product development spending has continued to increase even as growth has slowed",
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      "text": "When adjusted for acquisitions, Box’s R&D expense has continued to grow quickly, even as revenue growth continues to decelerate.",
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      "text": "Box appears to be relying more on acquisitions to fill product gaps and replace some productivity from internal R&D efforts.\nAs a result, the capital spent on these pre-revenue acquisitions should functionally be treated as R&D expenses.\nWhen adjusted for acquisitions, Box's R&D expense has continued to grow quickly, even as revenue growth continues to decelerate.",
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      "text": "R&D expense as % of revenue: 34.8%",
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      "text": "Given that M&A is now directly driving product development efforts, we believe it is prudent to examine R&D expenses combined with acquisition spend to determine the effectiveness of the Company's spending.",
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      "text": "Source: Company filings. Note: R&D expenses calculated as GAAP R&D + capitalization of software – amortization of capitalized software. Feb 2021 Acquisitions closed in Q1 FY2022. (1) Percentage calculated as (R&D Expenses + Acquisitions) / Revenue.",
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