Research

Leading angel investor Jason Calacanis used to insist on tech teams together in offices but now thinks "no one is going back to offices" at tech companies

View above about Issue: Percent of US office employees in an office on a peak day after paradigm shift

I am an in-the-office guy . . . you want to work from home, you take a sick day . . . and now, I lost the war. I'm not going to be able to compete for people unless I tell them they can work from Napa. Unless I tell them they can work from Lake Tahoe and come see me every month maybe for a retreat. And people are not going to spend 2, 3, 4, 5 thousand dollars a square foot in Manhattan if they can spend 3, 4, 5 thousand dollars on an acre, with broadband, up in New Paltz, Albany, or Hastings on the Hudson, or out here in Napa.
Research

Fall 2nd wave may be bigger because it may even include people previously infected

View above about Issue: COVID infections per physical contact by asymptomatic patients in 4Q2020

Levels of an antibody found in recovered COVID-19 patients fell sharply in 2-3 months after infection for both symptomatic and asymptomatic patients, according to a Chinese study, raising questions about the length of any immunity against the novel coronavirus.
Research

A reduced CAC, when compared to historical, may be warranted for future projections

View above about Issue: Customer Acquisition Cost for Current Registered Users if Box is One of a Few Alternatives for Them

Vendors believe that the B2B selling motion will be fundamentally altered as video becomes the new normal for many sales calls and more events will permanently go virtual, saving significant costs and easing the historically high customer acquisition costs inherent in enterprise software business models
Research

Box Expects More Efficient Sales from Shift from in-Person to On-Video

View above about Issue: Customer Acquisition Cost for Current Registered Users if Box is One of a Few Alternatives for Them

Yeah. I was just going to say, we're very excited about that transition to more virtual selling, that ability to get more and more customers on video right away. I mean, it used to be that if we wanted to go -- have a conversation with a Fortune 500 company, that might be punted by two, three, four weeks out, you have to travel, we have get the team together, and we're having those meetings get scheduled within a day or two of the initial kick-off. So that's one dimension . . . And on a go-forward basis, for all the reasons that we mentioned around our ability to successfully drive these deals and momentum in a different environment, we don't anticipate travel and events expenses returning to 100% of their pre-COVID levels.
Research

Box may Multiply its Paying Users Just by Converting Non-Paying Registered Users within Companies that already have Paying Users

View above about Issue: Peak market share of Current Registered Users if Box is One of a Few Alternatives for Them

We -- as we shared with investors in the past, we have a tremendous opportunity to expand Box throughout our customer base. In most large organizations, we're still in some cases only penetrated in 10% or 15% to 20% of the employee population that's available. So -- especially in this move to remote work or work from anywhere strategy, enterprises need the ability that use technology across their organization.
Research

The Sudden Shift to WFH May Improve Box's Value Proposition for its Non-Paying Users as More of their Employers Now Focus on Remote Workflows

View above about Issue: Odds that Box is One of a Few Alternatives for Current Registered Users

The opportunities for flexible work, global and virtual teams, and re-imagined business processes have always been a key element in our vision. While there is an undoubtedly significant economic disruption in many sectors right now, there is also an unmistakable sense that this is an opportunity to accelerate digital transformation. Organizations are now beginning to re-factor how they operate for the 21st century, eliminating paper-based processes, automating manual workflows, and creating new digital customer experiences.
Research

Box's value proposition for its 70.6M registered users may be second only to the one for its 13.6M paying users

View above about Issue: Prospective subs by market segment and org Box, Inc. and for customer Broader market

At January 2020, Box had 70.6M registered users and 13.6M paying users.
Research

Subscriber Lifetimes may be Higher Still since Box Saw Contract Durations Actually Increase during the COVID-19 Freeze

View above about Issue: Current Paying Users' Subscription Lifetime in Months if Box is One of a Few Alternatives for Them

One note I make in terms of the churn side of things and just the overall dynamics is alined with that our contract duration hasn't been impacted in this environment as we continue to be a critical part of our IT -- our customers' IT strategies. So we've actually seen the average contract duration, length of those commitments improving a bit over time. And that's on average about 18 months across our customer base. Our larger enterprise customers are much more likely design multi-year commitments with many of our smaller customer signing one-year deals. But I just wanted to differentiate between the payment duration impact and the contract duration lack of impact.
Research

Subscriber lifetime estimates for Box are justified within the SaaS industry

View above about Issue: Current Paying Users' Subscription Lifetime in Months if Box is One of a Few Alternatives for Them

As contract sizes increase, gross dollar churn consistently trends downwards (presumably related to longer term contracts). For SaaS companies with media contract sizes of over $5,000, the median annual churn will be ~10%. A 10% churn rate implies a 120 month subscriber life, justifying the 120 day figure cited. The ranges for these SAAS companies could easily fall as high as ~20% (justifying the 60 month sub life) or as low as ~5% (justifying a 240 month life).
Research

Real-Time, Box is Seeing Current Paying Users Engage with More Paying Features for not only Storage but also Workflow

View above about Issue: Peak monthly price per sub for Current Paying Customers if Box is One of a Few Alternatives for them

There is sort of this moment be in February, transitioning to middle of March where you can see that collaboration is going up in a range of industries, public sector, life sciences, healthcare and marketing and advertising, tech companies and then usage of things like integrations with Zoom and Webex and Slack and other tools. So that shift in more collaboration, more sharing more external collaboration of data is persisted throughout the quarter. We think this is a great opportunity to drive greater adoption within our customer base right now.
Research

There is Still Huge Opportunity for Existing Box Subs to Pay More by Adding More of its Suite

View above about Issue: Peak monthly price per sub for Current Paying Customers if Box is One of a Few Alternatives for them

And when we look at our customers, who have adopted at least one of our add-on products, they collectively now represent about 54% of our recurring revenue, and that's up from about 45% a year ago.