{
  "docId": "019dd923-622b-71dc-a6da-20e710622d80",
  "docSlug": "0ffe179c4c4e",
  "documentTitle": "Box, Inc. (BOX)",
  "authorId": "03_Starboard_Value",
  "authorName": "Starboard Value",
  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2021-08-06 00:00:00",
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  "pageNumber": 72,
  "pageCount": 184,
  "prevPage": 71,
  "nextPage": 73,
  "slideType": "expose_contradiction",
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  "density": "dense",
  "nDataPoints": 10,
  "notes": "Uses a waterfall chart to visualize the accumulation of unnecessary cash.",
  "elementsJson": [
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  "slideHref": "/slides/019dd923-622b-71dc-a6da-20e710622d80/72",
  "deckHref": "/decks/019dd923-622b-71dc-a6da-20e710622d80",
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      "kind": "callout",
      "text": "Over the past several months, Box has raised $845 million it did not need",
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      "kind": "chart",
      "text": "Box's Oversized Cash Balance",
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      "text": "As of Q3 FY2021, Box had $275 million of cash on its balance sheet, with a net cash position of $225 million. Going forward, the Company had guided to significant future free cash flow generation, providing the Company with plenty of flexibility, especially as Box had no history of executing sizable M&A, doing buybacks, or issuing dividends. In January 2021, Box raised $345 million through a convertible debt offering and stated that it was examining potential acquisitions. Less than a week after closing the convertible debt offering, Box launched a strategic review process. After failing to find a buyer for the Company, the Company concluded its strategic review by raising another $500 million it did not need, this time through the defensive and entrenching Preferred Financing, which was announced in conjunction with the flawed self-tender scheme.",
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      "kind": "metric",
      "text": "cash balance: $861",
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      "kind": "paragraph",
      "text": "Despite starting in an enviable position with a net cash balance and significant future free cash flow generation, Box has made a string of surprising and value destructive capital allocation decisions.",
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      "kind": "source-note",
      "text": "Source: Company filings. (1) Estimated fees by applying issuance fee rate of convertible debt to preferred equity.",
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      "kind": "title",
      "text": "Box's Misguided Capital Allocation Strategy",
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      "name": "Cost Of Inaction",
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      "evidence": "The deck highlights the cost of inaction, emphasizing the need for change in Box's capital allocation practices.",
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      "objective": "Highlight the cost of inaction and the need for change",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
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      "description": "Quantify what happens if the audience does nothing"
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