4 ms·
Maybe not right now, but soon. Box lost $167mm in FY2015 ($158mm in FY2014). They expect to lose $140mm in FY2016. Their IPO only raised $175mm, so at this rat
by skuhn 12y ago
Maybe not right now, but soon. Box lost $167mm in FY2015 ($158mm in FY2014). They expect to lose $140mm in FY2016.
Their IPO only raised $175mm, so at this rate they will run out of money in FY2017 or shortly after. It's a mystery to me why anyone bought into their IPO, and I think their stock performance since then shows that they will not have an easy time raising additional money from public markets.
They spent too much to acquire their customers, and now they only have demanding and expensive customers. The poor economics of their business forced them to raise money on poor terms (which helps to explain their IPO), and now their options for raising additional capital are going to be increasingly sub-optimal.