Box ends fiscal 2022 with reduced losses and revenue growth as multi-product deals intensify

Aaron Levie

While 2021 was a year that saw Box distracted by activist shareholder battles, the company continued to make progress in terms of revenue growth and loss reduction.

The collaboration provider yesterday announced a net loss of $4.3 million in the fourth quarter on revenue of $233.4 million. For fiscal 2022, losses narrowed to $41.5 million on revenue of $874.3 million. Other stats to note:

  • The net retention rate in the fourth quarter was 111%, compared to 102% year-over-year and 109% in the third quarter.
  • There were 128 deals over $100,000 and nine deals over $1 million, compared to 121 and four respectively.
  • For the full year, transactions over $100,000 were up 25% year over year.
  • There are now 1,420 customers paying more than $100,000 a year, up 17% year over year.
  • There are 119 customers paying more than $1 million per year, up 20% year over year.
  • There were 83 multi-product suite deals in the fourth quarter over $100,000, up 51% year over year.
  • For the full year, suite deals over $100,000 were up 110% year-over-year.

These multi-product offerings are particularly interesting, as Phil Wainewright has already observed. Box CEO Aaron Levie cited a few examples of customers adding to their initial investments to take advantage of the expanded product offering:

A US-based financial services company expanded its use of Box with a new three-year enterprise license agreement and upgraded to Enterprise Plus, bringing Box Sign to enterprise scale and it will standardize Box Sign as an electronic signature solution, which will help reduce costs. And since they are already using Box, it will make change management easier… In international marketing, an agency client of Box since 2013 moved to Enterprise Plus in Q4 with the intention of using Box Sign in their HR department to employee onboarding, contract renewals and to manage employee policies and contracts in a hybrid work environment.

As these examples suggest, much of this adoption is driven by the introduction of the Enterprise Plus pricing and packaging option. Levie said:

A large biotech company that has been a Box customer since 2015 expanded its use of Box with a six-figure Enterprise Plus upgrade. This agreement represents a shift for the customer to use Box for regulated content and higher value use cases as we become a more strategic partner for them. The added value and simplicity of Enterprise Plus was key to making Box a priority with decision makers and across teams across the business.

The U.S. Department of Federal Government expanded its use of Box with a seven-figure Enterprise Plus agreement, allowing them to provide Box to all service members requiring up-to-date training and the ability to manage critical content from anywhere. or.

And a global financial services group moved to Enterprise Plus and six-figure expansion. Box will be at the heart of their banking ecosystem and will be used alongside Salesforce as their primary content management platform. They also plan to use Box for mergers and acquisitions, external collaboration, and customer onboarding.

The future of work

Broader dynamics in the workplace also come into play and it all comes down to the commercial centrality of content, Levie explained:

The dynamics around COVID have forced a broad digital shift overnight and accelerated the need for the cloud to become the foundation of all work. In this new digital era, employees need to be able to work from anywhere, every business process that interacts with a customer or partner is going entirely digital, and businesses need to ensure their most important information is kept safe. . At the center of all this work is our most important content.

Content is how a movie studio creates and distributes a blockbuster hit to consumers, life science companies discover and produce new vaccines, helps consumer product companies design and invent their next breakthrough product and how banks integrate and collaborate securely with customers.

In short, content is our customers’ business. Yet most organizations are dealing with fragmented, insecure, complex, and overly expensive systems to manage this content. And these systems are only growing over time as new use cases emerge around electronic signature, workflow automation, collaboration, content publishing, business information, etc

my catch

As Phil noted in December, it’s a long game to play. Box has fleshed out its product offerings well and there is clearly momentum behind them. For fiscal 2023, expect the focus to be on expanding its Content Cloud as well as getting Box Sign into the hands of all existing Box customers, the latter being something that Levie says his team is spending “the majority of our energy on” right now.