Why Wall Street doesn't get it: Box COO

Investors need to adopt a "different mindset" when it comes to the concept of subscription software, the chief operating officer of cloud computing company Box told CNBC.

Speaking at the Web Summit tech conference in Dublin, Dan Levin highlighted that Software as a Service (Saas) companies like Zendesk, ServiceNow and Box offer a reliable source recurring revenue thanks to their subscription models.

Read MoreBox files to go public on New York Stock Exchange

Source: Box

"We have fairly high customer acquisition costs, but then customer lifetime profitability is very high," Levin told CNBC at the Web Summit tech conference in Dublin. "It just takes a little bit of a different mindset to think that through."

The comments came a day after Box CEO Aaron Levie told The Information that Wall Street was "still trying to figure out" how to value high-tech growth companies.

Read MoreApple has nothing to fear from end of 'Double Irish': Irish PM

While offering consistent revenue streams, Saas business models also come with their own challenges. First: finding customers willing to pay for a service – and then keeping them.

Box was founded in 2005 and now handles around 240,000 companies, including Balfour Beatty, P&G and Pandora. It made headlines this year after delaying its initial public offering (IPO), which was originally filed for in March.

The company has refused to comment on when the listing is likely to happen, but Levin insisted it was still on the cards.

"We think being a listed company – a public company – will really help us from a credibility and visibility point of view," he said in Dublin. "When the market is ready and our company's ready, we will take the company public."

- By CNBC's Katrina Bishop in Dublin