Frederick Gooding

Frederick Gooding asked about the broader AI adoption trends, specific Box platform capabilities unlocking use cases, and the rank order of go-to-market investment priorities, balancing them with potential margin expansion for FY27.

Answer

Aaron Levie, Box Co-founder and CEO, explained that Box embeds productivity-oriented AI into all plans, with monetized Enterprise Advanced capabilities focusing on pragmatic workflow use cases like data extraction, expanding the addressable market. Dylan Smith, Box Co-founder and CFO, identified partner SI ecosystem and sales force verticalization as key investment areas, alongside scaling high ROI marketing programs, aiming for moderate operating margin expansion in FY27 while capitalizing on the AI opportunity.

Frederick Gooding asked about the current inflection point in enterprise AI adoption, seeking specific examples of Box platform capabilities that are unlocking new use cases. He also inquired about the rank order of Box's go-to-market investment priorities, including system integrators, partner ecosystem, and multi-product/cross-sale motions, and how these balance with potential margin expansion for fiscal year 2027.

Answer

CEO Aaron Levie explained that Box's AI capabilities, particularly those in Enterprise Advanced, are monetized through pragmatic workflow use cases like data extraction from contracts, invoices, and healthcare records, expanding the addressable market. He noted that Box Apps and the upcoming Box Extract are accelerating Enterprise Advanced adoption without significant headwinds from AI governance. CFO Dylan Smith stated that go-to-market investments prioritize the partner/SI ecosystem and sales force verticalization, with cross-sell/upsell embedded in sales enablement. He affirmed plans to continue these high-ROI investments to capitalize on the AI transformation, aiming for moderate operating margin expansion in FY27 while remaining committed to long-term targets.