Box shares up amid reports of possible sale

The cloud content management company is reportedly considering a sale, amid pressure from activist investors.
Written by Stephanie Condon, Senior Writer

Box shares rose on Monday, following a report that the cloud content management company is considering a sale. Box has discussed a potential deal with interested buyers, Reuters reported, citing unnamed sources.

The talks come amid pressure from activist investors at hedge fund Starboard Value LP, according to the report, who are unhappy that Box hasn't aggressively capitalized on the enterprise trends driven by the Covid-19 pandemic. 

A spokesperson for Box declined to comment on the report. 

Earlier this month, Box reported better-than-expected fourth quarter financial results. Revenue was $198.9 million, up 8 percent year-over-year. For the full FY 2021, revenue was $770.8 million, an increase of 11 percent from fiscal year 2020.

However, the company did report a decrease in demand from SMB customers in the middle of the year. Executives said on the Q4 conference call that SMB demand has recovered. For FY 2022, "we anticipate continued strength in our enterprise business, a recovery in SMB demand and accelerated growth in our international markets," CFO Dylan Smith said. 

In a filing with the Securities and Exchange Commission last week, Box said it has extended the deadline for notice of Board of Director nominations to May 11.

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