BOX Expands Client Base With VA, Boosts Cloud Portfolio

Increasing adoption of Box, Inc.’s BOX cloud management platform by clients is reiterating strength and innovative nature of the product portfolio.

Recently, it announced that the U.S. Department of Veterans Affairs (VA) has issued the company an Authority to Operate (ATO).

Therefore, Box’s cloud content management platform can now be used by VA to modernize the latter’s technical infrastructure, thereby promoting digital transformation.

In the current scenario, wherein it is preferable to stay at home, its cloud content management platform will help VA develop new ways to work in the cloud, thereby bringing in more safety and reliability.

VA, with the help of Box, can enable its staff, doctors, and veterans to securely share as well as manage critical healthcare processes.

In this regard, researchers can now share COVID-19 data sets with VA administration officials, allowing them to take appropriate decisions regarding the medical facilities. In addition, construction project managers can use the cloud platform to share AutoCAD building design files and project documents with their teams, while maintaining proper privacy.

This deal will further expand Box’s customer base. With the growing deployment of the platform, it will generate more revenues and the top line will gain momentum.

Box, Inc. Price and Consensus

Box, Inc. price-consensus-chart | Box, Inc. Quote

Strengthening Clientele

The company’s strong product portfolio has been able to help it build a solid client base. Box enables in-house enterprise developers and independent software developers create industry- and market-focused applications with ease.

NEC is deploying Box’s cloud platform to a large extent for employees. In addition to NEC, other enterprises like Komatsu, AstraZeneca, General Electric, P&G and Schneider Electric have adopted the company’s platform.

Box’s strategic partnerships with Google Cloud and Microsoft’s Azure are helping it to integrate its platform. This has added enhanced features such as artificial intelligence, machine learning, and image recognition capabilities to Box’s cloud products as well as services.

Hence, the company is enjoying a strong client and user base.

Cloud Market Opportunities

Cloud still remains an expanding market with huge prospects. In a recent report, Gartner projected the public cloud service market to grow 6.3% in 2020 to $257.9 billion.

Also, per a Markets and Markets report, the market for cloud enterprise content management is expected to witness a CAGR of 28.6% between 2020 and 2025, and reach $34.42 billion by 2022.

We believe that Box is well positioned to take advantage of the projected growth in the cloud segment and moves like the latest one will positively impact the top line.

Zacks Rank & Other Key Picks

Box currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader technology sector include Dropbox DBX, Model N, Inc. MODN and Etsy, Inc. ETSY, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for Dropbox, Model N and Etsy is pegged at 34.4%, 13% and 28.5%, respectively.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.  

Click here for the 6 trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Model N, Inc. (MODN) : Free Stock Analysis Report
 
Box, Inc. (BOX) : Free Stock Analysis Report
 
Etsy, Inc. (ETSY) : Free Stock Analysis Report
 
Dropbox, Inc. (DBX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research