Enterprise cloud storage vendor Box has filed for an initial public offering (IPO) of $250m as it becomes the latest up-and-coming firm to file to go public. No guidance for the price of shares was issued at this time, though.
Box had been expected to go public for some time as it continues to grow strongly in the enterprise market, boasting customers in several markets such as Schneider Electric, music giant EMI and Hounslow Council.
The filing with the Securities and Exchange Commission (SEC) reveals that the firm’s revenue has grown strongly since in the past three years, from $21.1m in 2011 to $124.2m at the end of January 2014.
However, due to outlays in numerous areas – including sales and marketing where it spent $36.2m in 2011, $99.2m in 2012 and $171.2m in 2013 – the firm has incurred losses of $50.3m in 2011, $112.6m in 2012 and $168.6m in 2013.
Such a situation is common for many emerging companies, though, with Twitter revealing that it was making losses in its earlier years when it filed for IPO. Box said it could not guarantee this would change in the future.
“We have a history of cumulative losses, and we do not expect to be profitable for the foreseeable future,” it noted in its filing.
Security concerns were also aired: “Actual or perceived security vulnerabilities in our services, or any breaches of our security controls and unauthorised access to a customer’s data could harm our business and operating results.”
Such warnings are common in IPOs, though, and Box also provided a breakdown of why it believes it is well placed to be successful over the long term.
“We believe our opportunity includes large segments of existing enterprise IT spending as well as new use cases and users that are not currently captured by traditional market-sizing studies,” it said.
“Customers purchase our services both to replace existing storage and content management solutions, as well as to enable entirely new use cases not well served by existing content or collaboration solutions.”
Underlining the ongoing expansion in preparation for this growth Box also revealed it has increased its staff count massively, growing from 369 employees in January 2012 to 972 employees as of January this year.
It intends to trade on the New York Stock Exchange (NYSE) under the symbol of 'Box'.
The IPO filing follows hot on the heels of other web firms hitting the stock markets, with Twitter arriving on the Stock Exchange late last year and Dropbox also planning to go through the same process later this year.
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