Before launch As a startup in 2005, Box began as an idea co-founder and CEO Aaron Levie had for a marketing class — to bring the power of the internet to file sharing. The concept may not seem revolutionary today, but back then you could email a file if it was small enough, or you could put it on a USB drive and physically deliver it to the recipient . Other options were limited.
It’s hard to believe now, but the original academic idea turned into a startup, and later a way to tackle the entrenched enterprise content management industry.
Box, which started out so small, even posted $250 million in revenue for the last quarter, the third quarter of its fiscal year 2023, putting it on a $1 billion run rate for the first time. dollars. (Notably, in about 2014, venture capitalist Jason Lemkin told us that Box would one day hit the $1 billion mark; he also predicted it wouldn’t be easy. Two points, Lemkin.)
“We’re really proud of the fact that this is our first quarter of $1 billion in revenue, so we can now say that we’ve crossed that $1 billion revenue threshold, which which is super exciting,” Levie told TechCrunch.
Revenue was up 12% in the quarter from a year ago, more modest growth than Box has seen in recent quarters. What contributed to the slowdown? Levie said growth was impacted by the strength of the US dollar, which is currently affecting many businesses. Measured using old exchange rates (“constant currency,” in corporate parlance), Box’s growth would have been 17%, much more in line with recent reports.
“It’s quite material actually, and the way we talk about it is that before, if we sold the case for $1, now we’re getting 80 cents on this case. So it’s a material headwind” , did he declare.
But despite the economic challenges everyone is facing right now, Box is taking advantage of the need for customers to work remotely, or at least spend far less time away from a conventional office, and Levie said the His company’s solutions have become mission critical. for the customers.
“I think we are very strategic. I think the way companies manage content is very strategic, and so I think that puts us in a good position compared to other software companies because of that value proposition,” he said.
While he doesn’t have a crystal ball to see what budgets will look like in the future, he thinks Box remains in a strong position. The company appears to be looking to emphasize profitability over growth, which should please Wall Street investors at this time. How did that translate into the numbers for this quarter? Let’s look.