On this page of StockholderLetter.com we present the 5/15/2023 shareholder letter from BOX INC — ticker symbol BOX. Reading current and past BOX letters to shareholders can bring important insights into the investment thesis.

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 •  More "Application Software" Category Stockholder Letters
 •  BOX Benford's Law Stock Score = 37

BOX 5/15/2023 Shareholder/Stockholder Letter Transcript:

Thank you for your continued support as we build the
category-defining Box Content Cloud and achieve our
mission to power how the world works together.
   Aaron Levie

Fiscal 2023 was a year of driving profitable growth.
Our continued focus on expanding margins and
generating strong free cash flow is fundamental in
delivering long-term value for Box stockholders.
   Bethany Mayer

May 15, 2023
Dear Fellow Stockholders,
It is our pleasure to invite you to attend the 2023 annual meeting of stockholders of Box, Inc. More details on the annual
meeting can be found in the enclosed notice for the annual meeting and proxy materials.
Fiscal year 2023 was a strong year for Box as we exceeded a $1 billion annual revenue run rate on a quarterly basis and
delivered a healthy balance of revenue growth and increased profitability. We achieved 13% annual revenue growth and
drove significant margin expansion to achieve a 4% GAAP operating margin and 23% non-GAAP operating margin, up
300 basis points from 20% a year ago. We remained committed to our robust stock buyback program, and for the full year
of fiscal 2023, we repurchased 10.2 million shares for approximately $267 million. Finally, our continued execution and
our sharp focus on profitability allowed us to deliver on our revenue growth plus free cash flow margin target of 37%, a
400 basis point improvement from last year   s outcome of 33%.1
Driving Profitable Growth with the Box Content Cloud
We delivered these results in the midst of a challenging macro environment. Our ability to execute on delivering bottom
line performance even with a slowing demand environment is a testament to the strategies we put in place several years
ago to lower our cost structure, while still investing for long-term, durable revenue growth.
1
For further discussion regarding, and a reconciliation of, our non-GAAP to GAAP financial measures, please see pages 63-65 of our Annual Report on
Form 10-K included with your proxy materials.

Our customers have told us they are committed to their digital transformation imperatives and they remain focused on
enabling productivity across their business, especially in a hybrid work environment. They have also told us they are
working to optimize their spend and simplify their IT stack as they move more to the cloud. Most importantly, our
customers are dealing with a number of challenges in data security and compliance ranging from ransomware threats to
data leak challenges.
At the center of these challenges is how enterprises work with their content. Fragmented content architectures have led to
greater security risks, lower productivity due to complex tools and limited ability to automate content-driven business
processes, as well as too many overlapping or legacy solutions with significant IT management overhead. We believe that
our Content Cloud is best positioned to help customers solve this challenge, with a platform that enables our customers to
drive up productivity in their organization, simplify their IT stack and optimize spend, and protect their most important data
from a wide range of threats.
In fiscal year 2023 we continued to solve these challenges for our customers, releasing key enhancements to Box Shield
and Box Governance, our flagship security and governance solutions. We rolled out additional capabilities to Box Sign
and Box Relay, and added API enhancements. We also expanded our addressable market with the launch of the public
beta version of Box Canvas, our virtual whiteboarding solution.
With our platform, we will continue to focus on connecting content across all our customers    IT systems, making Box the
single source of truth for content in the enterprise, and we intend to continue enhancing our critical integrations with
partners like Adobe, Apple, Cisco, Cloudfare, Google, IBM, Microsoft, Okta, Palo Alto Networks, Salesforce, ServiceNow,
Slack, Zoom and many others, while also further building out the tools for customers to build applications on Box.
Our programs across go-to-market enable more new and existing customers to recognize the full value of the Box
platform with increased adoption of Enterprise Plus, our latest multi-product plan offering. We are doubling down on our
land, adopt, expand, and retain motion through our digital engine, inside and field sales efforts, working with key strategic
system integrators and technology partners, applying more focus to our key international geographies, as well as going
deeper in key industries like financial services, life sciences, healthcare, public sector, and more.
With the Box Content Cloud, we are well positioned to help our customers simplify their IT stack, reduce spend, and
optimize productivity, and with over 100,000 customers, we are excited about the opportunity ahead.
Environmental, Social and Governance Commitments
Leading positive change in the world has always been a key priority at Box. Our Environmental, Social, Governance
commitments are: protect our planet (E), invest in people and communities (S), and act with integrity (G). We aim to
create a better future for generations to come, while building long-term value for our stakeholders, communities,
customers, teams, and the planet.
The Box Content Cloud enables enterprises to work securely and efficiently from anywhere, and to move away from
legacy and paper-based processes. In addition, our focus on powering the Box Content Cloud through efficient and
sustainable means within our own company has been a priority in fiscal year 2023. Over the past year, we have made
significant progress on our infrastructure migration into the public cloud and have worked with our cloud service providers
to understand and optimize our usage of their cloud service, with the goal of reducing our consumption, costs, and
greenhouse gas emissions.
At Box, we are proud of our culture. We invest in Boxers and our communities. We invest in diversity, equity, and inclusion
(DEI). Our DEI programs are focused on a commitment of belonging at Box, so Boxers can thrive and be their best
selves. Our employee resource communities allow Boxers to engage in a sense of belonging and extends the Box culture
and values across all office locations and remotely. We are proud to be recognized as number two by Glassdoor in the
category of    Best Places to Work in 2023    among large U.S. companies, moving up from number five in 2022. We were
also recognized by Great Place to Work and Fortune magazine as one of the    100 Best Companies to Work For,    earning
the number 27 spot on the list for 2023.
In Corporate Governance, we are proud of the breadth of backgrounds and deep expertise that our Board brings to Box,
with a particular focus on SaaS and enterprise software, and a powerful track record of maximizing stockholder value. We
have continued to add fresh perspectives to our Board over the past several years, with 50% of our board members

having joined us since the beginning of 2020. We remain committed to the highest standards of corporate governance,
compliance, and ethics.
In summary, over the past year we have been executing on our strategy to drive long-term sustainable growth while also
delivering continued operating margin improvements. Our Content Cloud platform continues to deliver rapid innovation to
our customers, enabling them to use Box for more and higher value use cases, and accelerating their ability to delight
their employees and achieve their goals. Our resilient financial model allows us to respond dynamically to the market
environment, which is even more important as we enter into a period of incredible change throughout the world of
business and in technology.
There has simply never been a more exciting time for what we can now do with content, and our business strategy will
ensure that Box is at the very center of how our customers work. We are confident in our ability to achieve our goals and
increase stockholder value in fiscal year 2024 and beyond.
We have a number of important proposals for your consideration at this year   s annual meeting. We are asking you to vote
to: (1) re-elect three of our directors   Sue Barsamian, Jack Lazar, and John Park; (2) approve, on an advisory basis, the
compensation of our named executive officers; and (3) ratify the appointment of Ernst & Young LLP as our independent
accountant for fiscal year 2024. More information on the annual meeting, the Board   s recommendations and our company
can be found in the enclosed proxy materials or other materials we may send you regarding the annual meeting. We
encourage you to read these materials carefully when deciding how to vote your shares at the annual meeting.
YOUR VOTE IS VERY IMPORTANT. Whether or not you plan to attend the annual meeting, we hope you will vote as
soon as possible so that your voice is heard.
Thank you for your ongoing support and for being a part of our journey to transform how the world works together and
pioneer our industry going forward.
AARON LEVIE
CEO and Co-founder
Box, Inc.
BETHANY MAYER
Chair of the Board
Box, Inc.
For important information regarding our use of forward-looking statements, please see page 69 of this proxy statement.

5/15/2023 Letter Continued (Full PDF)

 

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