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  "documentTitle": "Box, Inc. (BOX)",
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      "text": "Prior to our involvement, stockholders were frustrated with Box’s poor profitability levels",
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      "text": "For years following its IPO, due to overspending in pursuit of elusive growth, as well as poor execution, Box operated at subpar profitability levels, leading to investor and analyst frustration.",
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      "text": "Non-GAAP Operating Margin: (2.4%)",
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      "text": "Prior to Starboard's involvement in 2019, Box's operating performance significantly lagged that of the Peer Group.",
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      "text": "Margin profile is unfit for BOX’s current growth rate. With S&M at north of 40% of revenue, we should be seeing a greater impact in revenue and billings acceleration. Gross margin also continues to decline, coming in at 71.3% this quarter, in comparison to 72.3% last quarter.",
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      "text": "…we’re not at all surprised that value-oriented investors have taken a significant stake…with Box spending ~41% of revenue on sales and marketing (higher than most SaaS peers in the ~30% range), we think a shift towards margin expansion could provide an avenue for unlocking shareholder value.",
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      "text": "“…we’re not at all surprised that value-oriented investors have taken a significant stake…with Box spending ~41% of revenue on sales and marketing (higher than most SaaS peers in the ~30% range), we think a shift towards margin expansion could provide an avenue for unlocking shareholder value.” — Raymond James, September 2019; “Margin profile is unfit for BOX’s current growth rate. With S&M at north of 40% of revenue, we should be seeing a greater impact in revenue and billings acceleration. Gross margin also continues to decline, coming in at 71.3% this quarter, in comparison to 72.3% last quarter.” — Craig-Hallum, August 2019",
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      "text": "Source: Company filings, Wall Street research.",
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      "text": "Box Lacked Operational Rigor and Financial Discipline",
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