http___www.wallstreetmojo.com_top-10-scariest-details-of-black-box-ipo__replytocom_7_lang_ga_1.xml
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On 24th March,2014, Online storage company Box filed for an IPO and unveiled its plans to raise US$250 million. The company is in race to be build the largest cloud storage platform and it competes with larger companies like Google Inc and its rival, Dropbox. I quickly browsed through Box S1 Filing and when i was hoping to see a Cool Blue Box, turned out to be a diffused “Black Box”. I also prepared a quick and dirty Box Financial Model to further access the gravity of the situation and realized that Box Financials were full of horror stories. You may also want to download Box IPO nyiaj txiag Model for further details. Risk Factor also mentioned in the Prospectus of Box Inc scares me even further. We do not expect to be profitable for the foreseeable future If you are planning to invest in Box, then you may also want to read Box IPO – To Buy or Not to Buy? Let me now narrate you the Top 10 scariest Details of (Black) Box IPO – # 1 – OMG – Box Revenue <<< Losses! - Box’s topline growth trend of more than 100% each year, which I believe is very impressive, Txawm li cas los, the bottom line is in real mess. I initially thought it was a typo, but realized soon that Box revenues were significantly less than losses. - Revenue of $124 million vs Net Loss of $168 million look a bit scary - Further adding to the woes, Box has an accumulated deficit of $361 million. #2 – Box Sales & Marketing Costs is 3 times the average - The biggest cost is the Sales and Marketing costs which at $171 million grew by nearly 73% y-o-y. - Box has maintained aggressive pace of expanding into several vertical industries and it is unlikely to come by significantly over the next couple of years. - The average Sales & Marketing (S&M) costs are approx. 45% of Revenue for the SaaS companies. - Txawm li cas los, Box’s S&M costs is 137% of Revenue, representing 3 times the average of SaaS companies (this makes me nervous!) #3 – Box operating exp to increase from $31m/month to $233m/month (yes, it is per month!) - The company recorded the operating expenses of $257 million in FY2014, which comes out to approximately $21.5 million per month. - Even if we remove the R&D expenses, the per month expenditure comes out to be $17.5 million per month. - Tseem, note that operating expense disproportionately every year and it increases from $31 million per month in FY2015 to $233 million per month in FY2019! #4 – Box Inc will require $1.25 billion dollars in the next 5 years to survive - Box had only $108 million in cash and cash equivalents and this was due to late year end funding of $100 million. Looks like Box received this funding in just a nick of time! - It can be seen from the Box Financial Model that $250 million would last a little less than a year at its current cash burn rate. - Infact, I note in Box Inc Financial model that they would require another $1 billion dollars if they wish to “survive” for the next 5 xyoo! - I have assumed that they would raise debt, Txawm li cas los, private investments can also be a reasonable option to look at. #5 – Management Owns Less than Expected - Aaron Levie owns only 4.1% of Box Inc (vesting portion), Txawm li cas los, if additional grants that he got are included, his stake is actually closer to 6%. With such a small stake in Box, founder’s interest and company’s interest may not be totally aligned. Tseem, to put things into perspective, you may note that post Facebook IPO, Mark Zuckerberg owned 22% of Facebook. #6 – Mark Cuban – I would combust if I was responsible… Mark Cuban, billionaire investor and entrepreneur, was one of the first angel investors in 2005. Txawm li cas los, a change in strategy by the company led him sell his stake in about a year. He may have missed the gains that his investment would have made, Txawm li cas los, Cuban seems unperturbed and warns investors with his tweet on 25th March, 2014. I wish @BoxHQ the best but I would combust if 8 years in I was responsible for $169mm in losses against less revs. I hope IPO gets them going #7 – OpenText seeking $268 million in damages in patent infringement lawsuit On 30th March, 2014, OpenText, Canada based largest software company that produces and distributes Enterprise Information Management software filed a patent infringement suit against Box asserting that Box infringes 200 claims across 12 patents in 3 different patent families. Open Text is seeking preliminary and permanent injunctions halting the sale of Box’s products, as well as damages exceeding $268 million. Compare this number with $250 million Box Inc is raising through IPO! #8 – Competitors The market for cloud based Enterprise Content Collaboration is competitive and fragmented. Though, this segment is rapidly evolving, Box Inc acknowledged Citrix, Dropbox, EMC, Google and Microsoft as competitors. A look at the competitors balance sheet provides a glimpse of how deep pocketed these companies are and how competitive the business environment may get going forward. #9 – NSA Struggles could be bad for business - National Security Agency (NSA) intelligence gathering tactics may scare international businesses out of working with US based technology companies. - Essentially when the core business lies on data sharing and collaboration, it becomes even more problematic as the data security becomes a question mark for international firm. - Aaron Levie suggested that if this occurs, then as a cloud provider they have to build business country by country with completely different operations and facilities and services. - Levis acknowledged that this will basically curtail the ability to go international and Box Inc may lose out an opportunity of growing cloud market. #10 – Box may get acquired after the IPO Box needs to raise around $1.25 billion on the next 5 xyoo. IPO of 250 million would contribute only 20% of the overall fund requirement. Txawm li cas los, the company may have to arrange for funds to an extent of $1 billion. Either they can look for private funding or raising debt. Another option that cannot be totally denied is that Competitors with deep pockets may look at acquiring Box Inc. Box may have to oblige going forward as they may look for aggressive growth and consolidation beyond their core capabilities. Next Steps? Anything I missed? Qhia rau kuv paub li koj xav, your feedback by Leaving a Comment – I do not represent any brokerage firm. The above views are my own assessment of Box IPO. I have tried my best to ensure factual accuracy of the analysis, Txawm li cas los, please feel free to provide me with corrective measures if you spot any errors.
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An 24 Márta,2014, Cuideachta stórála Líne Bosca comhdaíodh le haghaidh IPO agus nocht a chuid pleananna a ardú de Stáit Aontaithe Poist $ 250,000,000. Tá an chuideachta i rás a bheith thógáil ar an ardán stórála scamall is mó agus iomaíocht le cuideachtaí móra cosúil le Google Inc agus a rival, Dropbox. Browsed mé go tapa trí Bosca S1 Comhdú agus nuair a bhí mé ag súil a fheiceáil Cool Gorm Bosca, iompaigh amach a bheith ina diffused “Bosca Dubh”. Ullmhaigh mé chomh maith le Samhail Airgeadais Bosca tapaidh agus salach rochtain a fháil ar a thuilleadh ar an tromchúis an staid agus thuig go raibh Financials Bosca lán de scéalta horror. Is féidir leat freisin a íoslódáil Bosca IPO Samhail Airgeadais le haghaidh tuilleadh sonraí. Fachtóir Riosca luaite freisin sa Réamheolaire na Bosca Inc scares dom níos faide. Ní chuirimid ag súil le bheith brabúsach go ceann i bhfad Má tá tú ag pleanáil chun infheistíocht a dhéanamh i mBosca, ansin is féidir leat freisin a léamh Bosca IPO – Chun Ceannaigh nó Gan a Ceannaigh? Lig dom narrate anois agat ar an Barr 10 Sonraí scariest de (Black) Bosca IPO – # 1 – OMG – Bosca Ioncaim <<< Caillteanais! - Treocht fáis Topline Bosca de níos mó ná 100% gach bliain, a creidim go bhfuil an-suntasach, áfach, Is é an líne bun i praiseach fíor. Shíl mé ar dtús go raibh sé ina typo, ach thuig luath go raibh ioncam Bosca bhfad níos lú ná caillteanais. - Na Coimisinéirí Ioncaim de $124 milliún vs Glanchaillteanas de $168 milliún cuma beagán scary - Tuilleadh cur leis an léanta, Tá bosca easnamh carntha de $361 milliún. #2 – Díolacháin bosca & Tá Costais Margaíocht 3 uair an meán - Is é an costas is mó na Díolacháin agus Margaíochta costais ag $171 D'fhás milliún ag beagnach 73% agus-o-y. - Tá bosca chothabháil luas ionsaitheach leathnú i roinnt tionscail ingearach agus ní dócha a teacht ag go suntasach thar na chéad chúpla bliain eile. - Na Díolacháin meán & Margaíocht (S&M) Tá costais thart. 45% Ioncaim do na cuideachtaí SaaS. - Mar sin féin, Bosca s S&Tá Costais M 137% na gCoimisinéirí Ioncaim, ionadaíonn 3 uair an meán cuideachtaí SaaS (seo a dhéanann neirbhíseach dom!) #3 – Bosca EXP ag feidhmiú a mhéadú ó $ 31m / míosa chun $ 233m / míosa (yes, is in aghaidh na míosa!) - An chuideachta taifeadadh na costais oibriúcháin de $257 milliún i FY2014, a thagann i gcrích go dtí thart $21.5 milliún in aghaidh na míosa. - Fiú má táimid bhaint as an T&Costais F, Tagann an aghaidh na míosa caiteachais amach a bheith $17.5 milliún in aghaidh na míosa. - Chomh maith leis sin, faoi deara go chostas ag feidhmiú díréireach gach bliain agus méadaíonn sé ó $31 milliún in aghaidh na míosa i FY2015 le $233 milliún in aghaidh na míosa i FY2019! #4 – Éileoidh Bosca Inc $1.25 billiún dollar sa chéad 5 na blianta chun maireachtáil - Bhí Bosca amháin $108 milliún in airgead tirim agus cóibhéisí airgid agus tá sé seo ba chúis le maoiniú ag deireadh na bliana go déanach de $100 milliún. Breathnaíonn mhaith Fuair Bosca maoiniú seo i ach leasainm ama! - Is féidir é a fheiceáil ó an tSamhail Airgeadais Bosca go $250 Bheadh milliún deireanach beagán níos lú ná bliain ag an ráta a dhó airgid reatha. - Infact, Tugaim faoi deara i mBosca Inc samhail airgeadais go mbeadh siad ag teastáil eile $1 billiún dollar más mian leo “maireachtáil” don chéad 5 bliana! - Mé glacadh leis go mbeadh siad a ardú fiach, áfach, Is féidir infheistíochtaí príobháideacha a bheith chomh maith le rogha réasúnta chun breathnú ar. #5 – Úinéireacht Bainistíocht Níos lú ná ag súil leo - Aaron Levie úinéireacht amháin 4.1% de Bosca Inc (chuid dílseacháin), áfach, más rud é dheontais breise a fuair sé san áireamh, is é a gceist iarbhír níos gaire do 6%. Le den sórt sin i gceist beag i mBosca, Ní féidir leas bunaitheoir agus leas na cuideachta a ailíniú go hiomlán. Chomh maith leis sin, chun rudaí a chur i bpeirspictíocht, Is féidir leat a thabhairt faoi deara go bhfuil post Facebook IPO, Mark Zuckerberg úinéireacht 22% de Facebook. #6 – Mark Cuban – Ba mhaith liom a combust má bhí mé freagrach… Mark Cuban, infheisteoir billionaire agus fiontraí, Ba cheann de na chéad infheisteoirí aingeal i 2005. Mar sin féin, athrú ar straitéis an chuideachta i gceannas air dhíol a gceist i thart ar bhliain. Féadfaidh sé a bheith caillte na gnóthachain go mbeadh a infheistíocht déanta, áfach, Chúba cosúil unperturbed agus warns infheisteoirí lena tweet ar 25 Márta, 2014. Is mian liomBoxHQ an chuid is fearr, ach ba mhaith liom a combust dá 8 bliain i Bhí mé freagrach as $ 169mm i caillteanais i gcoinne níos lú revs.I súil IPO Faigheann iad ag dul #7 – OpenText Lorg $268 milliún i damáistí i lawsuit sárú paitinne Ar an 30 Márta, 2014, OpenText, Canada bunaithe comhlacht bogearraí is mó a mbíonn agus dáileann bogearraí Bainistiú Faisnéise Fiontraíochta chomhdú ar agra sáraithe paitinn i gcoinne Bosca dhearbhú go sáraíonn Bosca 200 éilimh thar 12 paitinní i 3 teaghlaigh paitinne éagsúla. Tá an téacs ar oscailt lorg urghairí réamh-agus buan stop dhíol táirgí Bosca s, chomh maith le damáistí mó $268 milliún. Déan comparáid idir an uimhir le $250 milliún Bosca Inc Tá ardú trí IPO! Oscail Téacs v. Bosca agus. go dtí an. #8 – Iomaitheoirí Tá an margadh do scamall Ábhar Fiontar bunaithe ar Comhoibriú iomaíoch agus ilroinnte. Cé, Tá an teascán ag athrú go tapa, Bosca Inc admháil Citrix, Dropbox, EMC, Google agus Microsoft mar iomaitheoirí. Soláthraíonn Súil ar an gclár comhardaithe iomaitheoirí le léargas ar cé chomh domhain pocketed bhfuil na cuideachtaí agus cé chomh iomaíoch is féidir leis an timpeallacht ghnó a fháil ag dul ar aghaidh. #9 – D'fhéadfadh Struggles NSA a bheith olc do ghnó - An Ghníomhaireacht Náisiúnta Slándála (SNE) Is féidir tactics bailiú faisnéise scare gnóthaí idirnáisiúnta as obair le cuideachtaí teicneolaíochta de Stáit Aontaithe Poist lonnaithe. - Go bunúsach nuair a luíonn an príomhghnó ar comhroinnt sonraí agus comhoibriú, éiríonn sé níos mó fadhbanna mar a éiríonn an slándáil sonraí comhartha ceiste maidir le gnólacht idirnáisiúnta. - Aaron Levie le fios go má tharlaíonn sé seo, ansin mar sholáthraí scamall tá siad a thógáil tír gnó de réir tíre le hoibríochtaí agus áiseanna go hiomlán difriúil agus seirbhísí. - Levis admhaigh go mbeidh an srian go bunúsach an cumas chun dul idirnáisiúnta agus d'fhéadfadh Bosca Inc chailleadh amach deis ag fás sa mhargadh scamall. #10 – Is féidir bosca a fháil a fuarthas tar éis an IPO Ní mór Bosca a ardú thart $1.25 billiún ar an chéad cheann eile 5 bliana. IPO de 250 Bheadh milliún cur ach 20% an riachtanais chiste foriomlán. Mar sin féin, féadfaidh an chuideachta a shocrú le haghaidh cistí an oiread de $1 billiún. Ceachtar is féidir leo breathnú ar mhaoiniú príobháideach nó fiach a ardú. Tá rogha eile nach féidir a shéanadh go hiomlán gur féidir iomaitheoirí le pócaí domhain breathnú ar a fháil Bosca Inc. Is féidir Bosca a iallach dul ar aghaidh mar is féidir leo a lorg fhás ionsaitheach agus comhdhlúthú thar a n-inniúlachtaí lárnacha. Na Chéad Chéimeanna Eile? Rud ar bith chaill mé? Bíodh a fhios agam cad a cheapann tú, do chuid aiseolais trí Ardteistiméireacht Comment p.s. – Ní féidir liom ionadaíocht a dhéanamh ar bith gnólacht bróicéireachta. Is iad na tuairimí thuas mo mheasúnaithe féin ar Bosca IPO. Tá iarracht déanta agam mo dhícheall chun a chinntiú go cruinneas fíorasach na hanailíse, áfach, bíodh leisce ort a chur ar fáil dom le bearta ceartaitheacha má tá tú ar an láthair ar aon earráidí.