Box CEO: NYC offices will help move to profit
Box still sheds money, but the cloud computing company's CEO believes some new digs will help it grind out a profit.
California-based Box on Wednesday announced that it will open offices in New York City, with former NASDAQ executive Adam Ross leading its financial services unit. The move helps Box serve East coast clients in financial services and insurance as it counts more of those companies as clients, said Aaron Levie, Box co-founder and CEO.
"You'll continue to see a pretty significant revenue growth rate and more efficiency on the sales and marketing side in business," he said in a CNBC "Power Lunch" interview.
The company in June reported an adjusted fiscal 2016 first-quarter operating loss of $32.6 million. Revenue and billings in the quarter, though, increased 45 and 58 percent, respectively, from the year before.
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The file storage company—which counts General Electric and the U.S. Department of Justice among its clients—sees its immersion in new sectors as crucial to growth, Levie said. KKR & Co. and Nationwide Insurance have already adopted Box for Financial Services since its launch in February.
Levie also touted platforms that allow hospitals and patients, or financial advisers and investors, to exchange content.
"That's a very different type of technology and it thus commands a very different type of value from customers that we serve," he said.
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Box shares have endured a tumultuous run since the company went public in January, and have dropped about 20 percent in the last month. They traded as high as 4 percent higher on Wednesday.