{ "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": 26, "pageCount": 184, "prevPage": 25, "nextPage": 27, "slideType": "testimonial", "function": "summarize", "density": "overcrowded", "nDataPoints": 4, "notes": "Uses a bar chart to compare Box's 1-day share price reaction against benchmarks, alongside three analyst quotes.", "elementsJson": [ "headline_text", "paragraph", "bar_chart_vertical", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6da-20e710622d80/26", "deckHref": "/decks/019dd923-622b-71dc-a6da-20e710622d80", "deckJsonHref": "/decks/019dd923-622b-71dc-a6da-20e710622d80.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6da-20e710622d80#slide-26", "components": [ { "bbox": null, "kind": "callout", "text": "Analysts and investors appeared excited to see Starboard involved in Box after years of stockholder frustration", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-e6ee-7118-870e-3b1b3c0c0c6f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.6, "w": 0.33, "x": 0.04, "y": 0.23 }, "kind": "chart", "text": "1-Day Share Price Reaction", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "303a839e-7ab7-44da-a81c-2294098e210c", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "1-Day Share Price Reaction: 12.3%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-e6ee-7118-870e-4324754e492f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.04, "y": 0.15 }, "kind": "paragraph", "text": "In September 2019, after years of stockholder frustration and poor performance at Box, Starboard filed a Schedule 13D disclosing a large position in the Company.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "28e7e7df-7fa5-4414-8af9-70754502fc3e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.58, "x": 0.38, "y": 0.65 }, "kind": "quote", "text": "Although we have maintained a positive view on Box's positioning and product portfolio, the company's go-to-market execution has been consistently disappointing...we would expect Starboard to increasingly pressure Box's management team.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1c9a0eb5-168f-4ad1-8101-2b1202cc00cd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.58, "x": 0.38, "y": 0.28 }, "kind": "quote", "text": "We are not surprised to see the involvement of an activist...An activist investor presents Box with an opportunity to improve sales execution...We note that Box has one of the lowest sales efficiencies across our entire coverage universe.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "40f8a94d-3879-46b5-aaa7-2af188df2bea", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.58, "x": 0.38, "y": 0.45 }, "kind": "quote", "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...we think a shift towards margin expansion could provide an avenue for unlocking shareholder value.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a506a470-010d-4f17-b402-8286b3cc8a69", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"We are not surprised to see the involvement of an activist...An activist investor presents Box with an opportunity to improve sales execution...We note that Box has one of the lowest sales efficiencies across our entire coverage universe.\" — D.A. Davidson, September 2019; \"...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; \"Although we have maintained a positive view on Box’s positioning and product portfolio, the company’s go-to-market execution has been consistently disappointing...if the solution selling strategy under COO Stephanie Carullo fails to materialize in a meaningful reacceleration in growth, we would expect Starboard to increasingly pressure Box’s management team to reevaluate its growth vs. margin framework.\" — Wells Fargo, September 2019", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-e6ee-7118-870e-3dcbb47062ea", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.6, "x": 0.04, "y": 0.94 }, "kind": "source-note", "text": "Source: Capital IQ, Wall Street research. Note: Peer Group include all peers listed on page 12 of the Company's FY2021 amended 10-K. Emphasis has been added by Starboard.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e74bc8ef-2537-4a4c-9e61-b283d5ce228e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.9, "x": 0.04, "y": 0.88 }, "kind": "title", "text": "Analysts and investors appeared excited to see Starboard involved in Box after years of stockholder frustration", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "27e25653-6de8-4abd-b59e-0e5d77af3a3a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.8, "x": 0.04, "y": 0.03 }, "kind": "title", "text": "Starboard's Involvement Was Well-Received by the Market", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e26c6c70-fba1-4179-acad-3640b8e2a26b", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }