Question · Q3 2026
John Owen asked about the performance of Box's federal vertical following the FedRAMP High authorization, including pipeline health and any impact from the government shutdown, and also questioned the drivers of the return to seat growth and future seat dynamics.
Answer
Dylan Smith, Box Co-founder and CFO, explained that FedRAMP High is crucial for sophisticated government deals, showing good momentum in sales and pipeline, with healthy public sector deals in Q3 despite minor shutdown impacts. Aaron Levie, Box Co-founder and CEO, attributed seat growth primarily to new use cases and expansions enabled by Enterprise Advanced and AI capabilities, expecting continued improvement in net retention and seat trends.
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BOX's earnings beat/miss a week before the call