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Box Expands Client Base, Boosts Cloud Content Portfolio

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Increasing adoption of Box, Inc.’s (BOX - Free Report) cloud management platform by clients reiterates strength and innovative nature of the product portfolio.

Recently, the company announced that its content management platform will be used by NEC Corporation (NEC) to support the latter’s work-style reform initiative, thereby promoting digital transformation.

The cloud platform will now be used by more than 100,000 employees of NEC, in turn expanding Box’s customer base. With the growing deployment of the platform, Box will generate more revenues and the top line will gain momentum.

NEC, with the help of Box, aims at changing and successfully integrating the work styles across various teams and at multiple locations on a single cloud platform, in a bid to enhance business performance and overall productivity improvement.

Box, Inc. Price and Consensus

 

Strengthening Clientele

The company’s strong product portfolio has been able to generate a solid client base. Box enables in-house enterprise developers and independent software developers create industry and market-focused applications with ease.

NEC is deploying Box’s cloud platform to a large extent for employees. In addition to NEC, other enterprises like Komatsu, AstraZeneca, General Electric, P&G and Schneider Electric have adopted the company’s platform.

Box’s strategic partnership with Google Cloud and Microsoft’s Azure is helping it to integrate its platform. This has added enhanced features such as artificial intelligence, machine learning, and image recognition capabilities to Box’s cloud products and services.

Hence, the company enjoys a strong client and user base.

Cloud Market Opportunities

Cloud still remains an expanding market with high growth prospects. In a recent report, Gartner projected the public cloud market to reach $411.4 billion by 2020.

Also, per Markets and Markets report, the market for cloud enterprise content management is expected to witness a CAGR of 28.6% between 2017 and 2022, and reach $34.42 billion by 2022.

We believe that Box is well positioned to take advantage of the projected growth in the cloud segment and moves like the latest one will positively impact the top line.

Zacks Rank & Key Picks

Box currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector include Match Group, Inc. (MTCH - Free Report) , LivePerson, Inc. (LPSN - Free Report) and Dropbox, Inc. (DBX - Free Report) . While Match Group sports a Zacks Rank #1 (Strong Buy), both LivePerson and Dropbox carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Match Group, LivePersonand Dropbox is currently projected at 15.2%, 25% and 14.2%, respectively.

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