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Box Files For $250M IPO

NEW YORK (TheStreet) -- The hotly anticipated initial public offering of cloud storage startup Box has finally become real for investors as the company officially filed for its debut on the New York Stock Exchange with the preliminary goal of raising $250 million in proceeds. The lead underwriters for the transaction are Morgan Stanley (MS), Credit Suisse (CS), and J.P. Morgan (JPM).

The Class A common stock will be listed as "BOX" on the Big Board.

The S-1 filing revealed Monday that the company has experienced significant growth since its incorporation in 2005. The company noted it has intense competition in the same, listing Citrix (CTXS - Get Report), Dropbox, EMC (EMC - Get Report), Google (GOOG), and Microsoft (MSFT) as its closest competitors." With the introduction of new technologies and market entrants, we expect competition to continue to intensify in the future," the company noted in the filing. 

For the 12 months ended Jan. 31, 2014, Jan. 31, 2013, and Dec. 31, 2011, the Aaron Levie-led company company's revenue was $124.2 million, $58.8 million and $21.1 million, respectively, representing year-over-year growth of 111% and 179%. However, the company losses grew during the same time as well, as the company continues to invest heavily in its business. "We have invested and continue to invest heavily in our business to capitalize on our large market opportunity," the company added. As a result, Box incurred net losses of $50.3 million, $112.6 million and $168.6 million for the 12 months ended Dec. 31, 2011, Jan. 31, 2013 and Jan. 31, 2014, respectively.

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What's driving those operating losses is the company's heavy spending on sales and marketing. For the year ending Jan. 31, 2013, Box spent $99.2 million on sales and marketing, only to see that increase to $171 million for the year ending Jan. 31, 2014. The company continues to hire at a frenetic pace, noting it had 972 employees at the end of fiscal 2014.

Billings increased 103% in the year ended Jan. 31, 2014 over the year ended Jan. 31, 2013, and 182% in the year ended Jan. 31, 2013 over the year ended Dec. 31, 2011. The increase in billings was primarily driven by the addition of new customers with larger initial deployments and expansion with respect to the number of users within existing customer base.

Box's top investors currently include Draper Fisher Jurvetson (25.5%), U.S. Venture Partners (13%), General Atlantic (8.4 %) and Scale Venture Partners (7.4%) and Bessemer Venture Partners (5.6%).

-- Written by Andrea Tse in New York

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