What pre-IPO investors think about the price action of BOX after its IPO? [-58% from 52w high]
It’s certainly hard to rationalize when we look at Unicorn and start-up valuations.
- Box has a clear path to $1 billion in recurring revenues and beyond. It crossed well beyond $300m ARR in mid-’15 and is still growing at a healthy clip:
- It has a clear path to becoming an iconic company and brand. That’s an important part of building a billion+ revenue platform.
- It has a charismatic, compelling CEO with a clear commitment to winning. Someone people believe in.
- It has spent, and lost, a lot of money — but losses are coming down. And wasn’t this OK for Amazon, etc.?
It seems the markets want something with the same growth but a smaller burn. In this space. Yes, it’s a competitive space. But I’m not sure that’s really the issue. It’s true of many other companies as well.
And oh yeah. Amazon had to convince people as well, for a while.
In any event, one thing is clear. Your unicorn, with far less revenues, better be a lot better than Box to deserve that valuation. And really. I’m not sure that it is.