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Box CEO: Crushing competition with collaboration

After Box has been stuck in the mid-teens for months on end, Jim Cramer decided to take a closer look to find out if investors could be approaching a moment where the stock has become a screaming buy.

The popular cloud-based storage and mobile business collaboration platform came public in January and was a hit right from the beginning. After pricing at $14, the stock closed at $23.23 on its first day of trading. However, since then it has all been downhill, and the stock now trades at $17.

And while the company is not yet profitable and it faces serious competition from Google, Microsoft and Dropbox, the "Mad Money" host recognized that Box has seen some solid results. Box reported a month ago and delivered higher than expected revenues, a smaller than expected loss and raised guidance for 2016.

"With 37 million total users on their mostly free data storage platform, and 47,000 customers who actually pay for higher quality of service, I think Box has found a business model that works," Cramer said.

So could Box be headed into new territory? Cramer sat down with the co-founder, chairman and CEO of Box, Aaron Levie, to find out.





Aaron Levie, CEO, Box
Scott Mlyn | CNBC
Aaron Levie, CEO, Box

The CEO commented on the platform of Box, stating, "Everything from the individual in a company who wants to be able to share and work in new ways, all the way to how the enterprise manages all of its content and all of its data, that's the kind of platform that we built."

Levie added that while some may think that a company like Dropbox is a competitor for Box, it actually serves a very different type of customer. Dropbox is focused on consumers and small businesses, while Box specializes in small- to medium-sized businesses. Thus, Levie says, the fierce competition perceived by some between Box and Dropbox is simply not there.

Cramer noted that Box's new partnerships with companies like Microsoft and IBM shows how the industry is shifting; where companies may have previously competed, they are now collaborating. How the heck is this possible?

"I think this is the new state of enterprise software…even though we compete on the fringe in some areas, we actually end up being way stronger partners when you look at it from a holistic standpoint. That's happening now really across the board," Levie said.

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The CEO added that the shift from competition to collaboration mainly stems from the need for best-of-breed platforms. So, for customers who need human capital management from the likes of Workday or client-relationship management from a business such as Salesforce.com, companies like Box partner with them to make their products stronger.

Ultimately, Levie is excited about the new collaborative landscape, which is something he has championed for 10 years.

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