NEW YORK (TheStreet) -- As Box opened its books for the world to see, many potential future investors were taken aback by the company's soaring sales and marketing expenses, which were exceeding total revenue dollar amounts.
With the markets distracted by the costs revealed in the S-1 filing last month, important announcements made by Box at its first developer conference about two weeks ago flew under the radar.
Just two days after the S-1 came out, the company unveiled plans to its platform, including a pay-as-you-go model that will allow a shift from the pay-per-seat platform pricing plan. It also showed off an enterprise app store, the ability for developers to build richer applications with the introduction of metadata support, and the unveiling of enhanced cloud-based document viewer, Box View.
The company's moves to keep adding capabilities to its platform ensures that it stays interesting for developers to build on, and that the developer community grows to become the primary constituent of Box's ecosystem should give the extra confirmation that dollars are being wisely spent at Box. For Box, the successful wooing of developers will foster steady, long-term enterprise-customer generation and retention.
"Developers will light up your product to the market in ways that you can't do yourself as a company, so you go to a great extent to court them, and that's what Box is doing -- and they're on a relatively well-worn path," said Rob Koplowitz, Forrester vice president principal analyst serving CIOs. "Winning over the developers is a necessity for a company that is betting on the enterprise 100%."