Box Grows Through Integrations

As employees continue to work remotely, organizations are learning to deal with managing access to content that is fragmented across legacy systems like SharePoint, FTP site, and Documentum. To help employees work better, these employers are seeing the benefit of transitioning to solutions that provide secure access to content access across all other cloud applications. By integrating secure content management, collaboration, and workflow in one place, Box (NYSE: BOX) is able to meet this growing demand.

Box’s Financials

Box’s second quarter revenues grew 11% over the year to $192.3 million, ahead of the market’s expectations of $189.6 million. Billings grew 9r % to $188.8 million. On an adjusted basis, the company reported an EPS of $0.18, ahead of the market’s forecast of an EPS of $0.13.

For the current year, Box raised its revenues forecast to $767-$770 million and increased its EPS forecast to $0.56-$0.60. Box expects to end the third quarter with revenues of $193-$195 million with an EPS of $0.13-$0.15. The market expects revenues of $765.1 million with an EPS of $0.50 for the year and revenues of $192.8 million and an EPS of $0.12 for the third quarter.

Box’s Product Upgrades

Box recently released an updated and simplified design of their offering that delivers faster performance. It allows users to organize files and folders around the topics they need. Users can also organize documents as work streams that are important to a specific user. The upgrade also includes Annotations that allows users to leave markups and comments directly in Box on all content. Users can review content by highlighting and adding annotations to more than a hundred file types directly in Box Preview.

Box leveraged ML capabilities by announcing Box Shield’s auto classification feature that can automatically scan files and classify them based on the content. Box Shield is Box’s security capability that prevents accidental data leakage and detects potential access and misuse concerns. The update helps businesses detect and secure sensitive data.

Box continues to add integrations to other fast growing solutions. It announced the new Adobe Acrobat for Box integration that will allow users to seamlessly view, access, and edit PDF files directly from Box.

Keeping in mind the remote working conditions, it announced a new Box for Webex Teams integration that will allow teams to share and view Box content from within a Webex Teams space.

Box recently expanded its partnership with Google Cloud. As part of the engagement, Box will leverage Google’s Cloud capabilities to enhance the scale, performance, and intelligence of its platform. Together, the companies will deepen the Box and G Suite integration to create a seamless customer experience between its apps. New integration features include consistent access settings and privacy controls across Box and G Suite; reciprocal transfer for Google Docs, Sheets, and Slides between Box and Google Drive; and a new G Suite add-on that lets customers start a document in G Suite and save back to Box.

Box and Google have been integrating with each other since 2018. Initial integrations allowed customers to create, edit, and collaborate on G Suite files from within Box, while maintaining Box’s controls and compliance capabilities. The two believe that by working together, they will be able to “provide optimal experiences for their joint customers and remote teams.” Instead of competing with Google, Box has safely decided to partner with it by building seamless integrations with the tech giant’s offerings.

Its stock is currently trading at $18.23 with a market capitalization of $2.9 billion. It touched a high of $22.09 in June this year. It has recovered from a year low of $8.64 that it had fallen to in March this year.