Box IPO on hold because of iffy markets

Box, the enterprise file sync-and-share company, is opting to delay its IPO until June or beyond, given the enormous downdraft in the markets for cloud computing offerings, according to the Wall Street Journal.

An index of 37 cloud computing companies calculated by Bessemer Venture Partners reached its lowest point this year on Monday, and the companies included have lost $58 billion in the past few months.

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Box doubled revenues from 2012 to $124.2 million in 2013. But losses grew to $170 million in 2013, 50% larger than the year prior. Investors may value Box less now that they seem to be punishing stocks with small or non-existent profits, like Twitter and Amazon. Enterprise software firms like Workday and Veeva have lost 25% of their market cap or more.

Rumors are swirling about a possible sale of Box to a large player, like Apple or Microsoft, but the company’s trajectory to date has been to pursue an independent future, although an exit by acquisition is always an option, and one that may become more attractive to Box’s board if the market remain discouraged about low/no profit cloud companies.

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Stowe Boyd

Stowe Boyd

Lead analyst, future of work Gigaom Research and stoweboyd.com

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