- Box recently reported a strong FQ4 with revenue and EPS coming in ahead of expectations.
- Management guided to another year of revenue growth deceleration, which has been a consistent trend since FY16.
- Sales and marketing expenses have become less efficient and yielded lower incremental revenue returns, which could mean their current unit economics are not sustainable.
- Valuation remains ~4.2x forward revenue, near the high-end of the company's recent trading range.
- Investors are better off waiting for a better entry point below $20.
For further details see:
Box: Challenging Unit Economics Could Weigh On Growth And Profitability