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Breakingviews

Breakingviews: Box of IPOs

Tuesday, March 25, 2014 - 03:47

March 25 - Breakingviews columnists discuss the IPO of money-losing cloud storage firm Box and why its slew of oddball features epitomizes the current bout of technology mania.

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Got a parade it like -- is and Silicon Valley. -- some of the healing of the 1990s don't called visual kind of slightly wacky feature is. Astronomical valuations. Jeff we haven't new one yesterday that. That you really -- at all really everything wrapped up and of. Having so it's I -- also about seems to have some mix of you know not profitable. Lot of revenue growth. Young hip pot CEO. Multiple share classes also -- -- you know weird -- you know metrics and box which is this cloud storage company. Has all of it in one box of so -- -- you know you can start with -- you know with the revenues situation it's growing hugely doubling. But at same time it's losing money and it lost more money. That I had in revenue which is a really unusual situation so yeah it's. Lost less. As a proportion of revenues and in previous is -- it still leading wilderness yes exactly you know we are talking about prisoners you know some -- metrics and there which we've come to love and appreciate the -- -- with me that retainer how many -- has -- retention -- Which is over a 100% which somehow mean that it's keeping more than all of its customers. -- you are always looking for a president of the loses my every -- Turkey's more than all customers OEM equipment these metrics on things that Groupon had one. Is that he is historian and and we had that week which was kind of -- -- -- profit accepted added faculty expenses. Revenues and that is the kind of things that you see in it that -- -- to help. But actually what it is that take away the fact that he. Instead of having a black profit instead these folks is guy elsewhere something else that's growing and and you can usually make these metrics that every morning. Did -- -- had the daily active growth seen and right which is absolutely about the number of ignorant people -- -- field line and of course that number is growing up terrorist -- it's it's not necessary why investment company. The problem boxes that just in Harlem business online storage is this really just awful business entity that is like -- -- that it just levels that these huge huge companies Amazon Microsoft IBM. Cooler all they're all trying to get into this -- there's a loss leader there to Tressel other services and the what you're getting is they're selling com. Online storage as cheap as they can be and are they increased the rest version and make it cheaper every every few months. So it's kind of like selling milk against Wal-Mart community college you know like Wolverine is a loss that you don't wanna be in the book -- story that's kind of the. And the business of the business doesn't differentiate itself but also structurally to have differentiated itself very legitimate. We're gonna have dual class shares. You know they'll be at the classic has been on how many -- who's gonna all of them but they'll have you know it's ten votes for every one. You've also got a situation where. The CEO of I've found error of boxes start of the company's former which is great you know classic another staple of Silicon Valley. Stories. You know supposedly it looked like he was out on Twitter last night clicking favorite on certain tweets had to do with yet you know we don't know you know whether that's about it it -- and the -- to technically talk running -- and it's -- evocative of what the Groupon founder. But during he wrote a letter to his employees after the which which got investigated this is it is boxed they're really just has all the elements that are you know really odd ball circumspect and you know troubling I guess if you're an investor it's congress thanks guys -- keep bulk of the stream it is to him so badly. Double breaking news for you tomorrow.

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Breakingviews: Box of IPOs

Tuesday, March 25, 2014 - 03:47