Bubblewatch: Box.com IPO despite net loss of 135%

Box IPO

Box partying like it's 1999: Déjà vu all over again?

Box (née Box.com, née Box.net) wants to go public. The cloud-computing startup seems to think it's now better to go to the markets than go for another VC funding round.

But is it a sound business? Its annual losses are growing, despite—or perhaps because of—heavy marketing investment.

In IT Blogwatch, bloggers remember the last tech bubble.

Your humble blogwatcher curated these bloggy bits for your entertainment.

 

Alex Wilhelm reaps the grim statistics:

The Box S-1 is out at last. The…company is looking to raise up $250 million. … [It has] quickly growing revenues and large losses…revenues grew to $124 million, up from $58.8 million [with] losses of $168 million [vs.] $112 million [the previous year].

Put more simply, Box spent more dollars on selling its products in the year than it brought in revenue. … Box only has $108 million in cash and equivalents. That means it has under a year of burn.

Box lost more than $14 per share in both 2013 and 2014.  MORE

 

Douglas MacMillan and Scott Austin run the numbers:

The online storage company…earlier this year filed for an IPO confidentially without public disclosures. … Its accumulated losses as of Jan. 31: $361 million. A big chunk of the costs are in sales and marketing — $171 million last year alone [which] rose 73% primarily by adding more than 600 people during the year.

25 million registered users…in over 200 countries.

Paying business customers…about 15%.

CEO and co-founder Aaron Levie’s compensation…$2 million…in 2013, including $1.8 million in option awards.  MORE

 

As per, Box's legal counsel grab a hold of the Twitter reigns:

This tweet does not constitute an offer of any securities for sale.  MORE

 

DFJ's Josh Stein, an early Box investor, waxes thuswise to Connie Loizos:

Markets that have the potential to be big, and entrepreneurs who are passionate and driven and kind of unreasonable…aren’t willing to accept the conventional wisdom. They’re doing things that by their nature are very hard, and most people will tell them they’re wrong [but] they’re so committed…that they bull through that.

[Box] struck us as a product that could be very horizontal – not just for salespeople or doctors but for everybody.

[The founders were] obviously sharp, bright, and hard-working.  MORE

 

Om Malik shows insights into Box's CEO:

Box CEO Aaron Levie [is] lethal cocktail of ambition, doggedness and humility. ... Many have given him and Box up for dead — most famously Mark Cuban — but he keeps coming and coming. ... Levie is a man in perpetual motion.

Check out Aaron Levie’s keynote speech about building an enterprise company that doesn’t suck below:  MORE

 

Meanwhile, Evelyn Rusli eyerolls repeatedly:

Today's tech news cycle: X is raising, X is going public, X is raising even more money, rinse, repeat.  MORE

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