Cloud storage startup Box filed for an IPO at the end of March.
It’s still not a public company. And, according to Bloomberg, it’s not going to be a public company until 2015.
Sources tell Bloomberg Box is delaying its offering because of “volatile market conditions”.
The market has been a bit bumpy in the past few days, but all summer it was pretty strong.
Market conditions were favourable for Box then. The real problem for Box is that its business looks shakey.
In March, when it filed, Box reported a $US168 million loss on revenue of $US124 million.
Tomasz Tunguz, a VC at Redpoint, did an analysis of Box comparing it to 40 other publicly traded companies. His conclusions were not good for Box:
- “Box’s profitability in year 9 of its life is -136%. No other comparable company comes close in terms of net income % in their ninth year. Second place goes to Rally with -53%.”
- “Box’s burn rate is twice as large as the next comparable firm, and nearly 10x the average.”
- “Box spends about 137% of their revenue on sales and marketing. This sales and marketing expense figure is 3x the average of 42% of revenue found across all other publicly traded SaaS companies at this point in their lifecycle.”
- “Box spends nearly 3.7x as much on sales and marketing as research and development. The average public SaaS business spends 2.5x at year nine in its life.”
- “Box’s average customer value (ACV) is $US3,653, much lower than the median of 59,600.”
- “Box’s sales average quarterly efficiency over the last year is 0.4 compared to 0.97 for other SaaS publics.”
- “Box is among the fastest growing SaaS companies at this point in its life. Box’s revenue grew 110% in the last twelve months, about 2x the average rate of 53% of a SaaS company in its ninth year.”
As it struggled to get its IPO out, it raised money from private investors. In July, it raised $US150 million at a $US2.4 billion valuation. This extra money is buying it time to get its business in better shape.