Channel partners of file sync and share technology developer Box said financial information the company released in preparation for its upcoming IPO shows a company actively building the infrastructure needed to become an enterprise powerhouse, rather than a company struggling to turn a profit.
Box on Monday filed a form S-1 with the SEC containing information on its planned IPO, which it expects will bring in about $250 million.
In the S-1, Box wrote the company had revenue of $124.2 million for the year ended Jan. 31, 2014, which was over five times the revenue of $21.1 million it recorded for the year ended Dec. 31, 2011.
Box also reported a loss of $168.6 million for the year ended Jan. 31, 2014, up from a loss of $50.3 million two years earlier. The company's accumulated losses totaled $361.2 million as of Jan. 31, 2014.
Box is definitely investing for the future, said Rafi Kronzon, CEO of Cartwheel, a New York-based outsourced business solution provider.
"In this environment, I don't think anyone thinks anyone is in trouble," Kronzon said. "There's a bubble, especially in the cloud."
In fact, Kronzon said, customers understand that Box is building an infrastructure to support enterprise customers.
"Box has built out its own data centers in order to sell to enterprise who care where their data is stored, while Dropbox uses Amazon to store the data," he said. "Dropbox will probably have to build its own data centers someday. Smaller SMBs probably think Amazon is good enough. But for health companies and others who require more security, Box has HIPAA."
Both Box and Dropbox have good services, but are used differently, Kronzon said. "Dropbox is a great tool for the average SMB," he said. "However, when it comes to collaborating on documents, Box is far ahead."
For SHI International, the move by Box to go public is not as important as the services the company provides through partners, said Ed McNamara, director of communications and marketing for the Somerset, N.J.-based cloud services provider.
"We're a private company, and we follow what happens on Wall Street," McNamara said. "But we look more at what customers want. We're seeing more and more enterprise adoption of Box, and that's more important than its IPO."
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