Box wants to raise over $250 million [£151 million] from its initial public offering [IPO] after documents filed with the Securities and Exchanges Commission [SEC] were finally made public prior to its flotation on the NASDAQ stock exchange in New York.
The cloud storage specialists filed with the SEC back in January and were able to keep the details hush-hush due to the SEC rules governing companies making less than $1 billion [£610 million] that were introduced as part of the Jumpstart Our Business Startups [JOBS] Act.
It was originally rumoured that company cofounder Aaron Levie wanted to raise $500 million [£302 million] from the IPO and the new figure falls short of the amount rival firm Dropbox recently raised through private markets.
Despite seeing revenues mushroom over the past few years, the company is still seeing losses grow at an alarming rate, according to Tech Crunch. For the year ended January 2014, the firm’s revenues increased to $124 million [£75 million] from the $58.8 million [£35.6 million] figure it posted in January 2013.
This was dwarfed by the net loss the firm incurred over the same period that reached $168 million [£102 million] up from $112 million [£68 million] the previous year. Box’s main cost comes from sales and marketing, which set it back some $171 million [£103 million] in the year ending January 2014 and the stock market investment will help it to run at a loss for at least another couple of years.
Right now the firm has a total of 972 employees and has been refreshing the service over the past 12 months or so with dLoop’s technology acquired in November and the new Box $rev program was launched as well as a specific small business starter plan.