Box Inc Stock Price, News & Analysis

Box announced a modified Dutch Auction tender offer to buy back up to $500 million of its Class A common stock, with prices ranging from $22.75 to $25.75 per share. The offer, which begins today and expires on June 29, 2021, aims to enhance liquidity for stockholders. The last closing price was $23.97. The tender is not conditioned on a minimum number of shares being tendered, allowing for flexibility. Stockholders who do not participate will see their ownership percentage increase. Detailed terms are available in the offer documents to be mailed to stockholders.

Box, Inc. (NYSE:BOX) reported strong financial results for Q1 FY22, with revenue of $202.4 million, a 10% increase year-over-year. Remaining performance obligations (RPO) rose 20% to $864.8 million, while billings grew 24% to $159.4 million. The GAAP net loss per share improved to $0.09 from $0.17 in Q1 FY21. Non-GAAP net income per share was $0.18, up from $0.10. The company expects Q2 revenue to be between $211 million and $212 million and forecasts full-year revenue of $845 million to $853 million. Box also announced a strategic partnership with KKR, including a $500 million investment.

Box issued a statement addressing a lawsuit from Starboard Value LP, indicating that the plaintiff voluntarily dismissed all claims. The Box Board has eliminated voting restrictions on preferred stock, allowing KKR to vote freely. The Board remains committed to corporate governance and shareholders' interests, endorsing a KKR-led investment as beneficial. With a refreshed and diverse Board, Box aims to enhance its cloud content management strategy. The company promotes ongoing dialogue with shareholders while asserting no additional Board changes are necessary.

Starboard Value LP, holding 8% of Box, Inc. (NYSE: BOX), sent an open letter to stockholders expressing concerns over a $500 million convertible preferred equity financing. This financing is seen as a move to entrench the Board and diminish the voting power of common shareholders. Starboard criticized the Board's governance and decision-making processes, highlighting a class action lawsuit's claims that the financing lacks a legitimate business rationale. Starboard intends to file a Books and Records request to investigate the Board’s actions further.

Box, a leading Content Cloud provider, has been chosen by the U.S. Department of Health and Human Services (HHS) to enhance its digital capabilities. The HHS will utilize Box’s Digital Business Suite to manage COVID-19 vaccine logistics, secure content, automate workflows, and facilitate file sharing for improved health services delivery. Box's initiatives align with HHS's mission to modernize technology use, ensuring data privacy and security. The agency joins various top organizations leveraging Box's solutions, affirming its role in supporting effective public health services.

Box, a leading Content Cloud company, announced the closure of a $500 million investment led by KKR, appointing John Park to its Board. The investment will primarily fund a share repurchase via a Dutch auction self-tender of up to $500 million. The specific amount for buyback will depend on market conditions. This strategic move is seen as essential for Box's growth, allowing stockholders to either monetize their investment or benefit from KKR's involvement. Further details will be disclosed in an SEC Form 8-K.

Box responded to Starboard Value's proposed Board changes, asserting they aren't in the best interests of stockholders. Box highlighted its progress, including 11% revenue growth and a significant margin increase, achieving over $771 million in revenue for fiscal 2021. Recent enhancements include adding six independent directors since 2018 and a strategic partnership with KKR, which includes a $500 million investment. The company plans to capitalize on a $55 billion market opportunity, targeting 12%-16% revenue growth and 23%-27% operating margins by fiscal 2024.

Starboard Value LP, a significant stockholder of Box (NYSE: BOX) with about 8% ownership, announced the nomination of four directors for Box's Board of Directors at the 2021 Annual Meeting. Starboard aims to enhance governance and drive value creation, citing Box's recent underperformance and poor capital allocation decisions. Despite previously appointing two independent directors, Starboard believes further action is necessary to bridge the valuation gap with peers. The firm has a history of improving underperforming tech companies and intends to work collaboratively with Box to achieve this goal.

Cisco Webex (NASDAQ: CSCO) and Box (NYSE: BOX) have announced enhanced integrations aimed at improving secure cloud collaboration. Users will now be able to link Box folders directly within Webex messaging, allowing shared content to be securely stored in those folders. Furthermore, Webex has become a Recommended App within Box, enabling users to initiate meetings and share materials seamlessly. The updates build on their existing partnership to support hybrid work environments, enhancing user experience and ensuring content security.