|Loss-making storage provider Box plans US$250m float
US online storage provider Box is seeking to raise US$250 million in an initial public offering.
With Monday's IPO filing, Box Inc. took the wraps off its finances for the first time since the Los Altos, California, company was founded nearly nine years ago by college dropout Aaron Levie and his friend, Dylan Smith. The documents show Box has lost a total of US$337 million since the end of 2011 alone, including a US$169 million setback during its last fiscal year, AP reports.
The filing did not set a price range for the Box shares or how much stock will be sold.
The company plans to list its shares under the ticker symbol “BOX'' on the New York Stock Exchange.
Levie, 29, serves as chief executive of Box while Smith, 28, is the company's chief financial officer.
“At times, we may get some things wrong, but we respond quickly and ‘fail fast,''' Levie wrote in a letter accompanying the IPO filing. “More often, however, our speed affords us an incredible competitive advantage.''
Losses at Box have mounted amid increased spending on service improvements and payroll expansion. The company has tried to take advantage of demand for online storage services that store digital files in remote data centers so people are able to fetch the content on whatever device that they may be using at the time.
Box it has more than 25 million users, including many who use the service through subscriptions paid by their employers, according to the IPO filing. About 225,000 organizations rely on Box's service, including more than 34,000 that pay fees, the documents said.
The subscriptions helped Box more than double its revenue last year to US$124 million, up from nearly US$59 million last year. The company has nearly tripled its payroll since 2011 to about 1,000 employees, according to the IPO filing.
Box has been relying largely on venture capital to help offset its losses. The company has raised US$337 million since April 2010, according to the filing. In its last round of financing, Box sold preferred stock at US$18 per share.