Good afternoon, everyone. I'm Cynthia Hiponia, Box Vice President of Investor Relations. Thanks for joining us today at BoxWorks 2022. Since our comprehensive product strategy briefing that we provided at our financial analyst day in March, our product leadership and pace of innovation has continued. We're excited to have our CEO and Co-Founder, Aaron Levie, and our Chief Product Officer, Diego Dugatkin, here to provide an overview of today's exciting product announcements and take your questions. Please note, this presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. Further information on these risks can be found in the documents that we file with the U.S. Securities and Exchange Commission. With that, I'd like to turn this call over to Aaron Levie, Box CEO and co-founder.
Thanks, Cynthia, and thank you all for joining us today. We have had an incredible BoxWorks thus far, and it's just getting started. This is a two-day virtual event, and we have thousands of customers from all around the world attending, and tens of thousands of folks, you know, viewing all the various content, so we're really excited about the event. At Box, our mission is to power how the world works together. At BoxWorks, we're gonna be making a series of announcements around what the future looks like with our platform. In just a few moments, we're gonna have Diego, as Cynthia mentioned, our Chief Product Officer, talk about some of the announcements that we made just this morning to all of our customers. We have a ton more in store throughout the rest of the conference.
We started Box in 2005 with a simple mission. We wanted to make it easy to access and share and collaborate on any information from anywhere at any time. We evolved that mission to really being about how the world works together and being able to power that for all of our customers. During the pandemic in the past couple of years, this mission has become even more important to all of our customers globally, and really ultimately drives the opportunity that we have going forward. Today, Box works with over 100,000 customers and across 67% of the Fortune 500.
We're incredibly proud to be able to work with everything from fast-growing technology startups like Spotify or Airbnb, all the way to some of the world's largest organizations like General Electric or IBM, AstraZeneca, and many more that have adopted Box broadly throughout their organizations. What all of these companies have in common, whether in life sciences or the tech industry or manufacturing or consumer products, is fundamentally, work is changing in their organizations. In the past couple of years, we've seen this change rapidly accelerate. The pandemic changed everything about what work looks like and where work is gonna be going in the future. When we just compare and contrast how work used to happen with how it works today, almost everything is different.
We're working from anywhere, so every enterprise we talk to wants to be able to access information from any time, anywhere, any location. They're no longer just working within the four walls of a single office building, but instead, teams are distributed and dispersed across a variety of locations and geographies. That means that companies need to be able to get access to their most important information from anywhere. We're also no longer just working with a few people that surround us inside of our office building in a local team, but instead working as a network across boundaries to be able to move any business process and project forward. We are working in a much more distributed fashion. Digital is now at the center of how we work.
It used to be that a lot of our work was analog, and then we digitized that work after the business process was accomplished. Well, today, that doesn't work anymore because as we've gone remote and as we've gotten distributed, digital is the way that we bind all of our distributed work together. It's at the center of fundamentally of how we work, and you'll see this tie into a number of our product announcements that we made at BoxWorks today for all of our customers, where we're changing the way they work when digital is at the center of how they're doing everything. As work has gone digital, it means we have more data than ever before. There's a massive abundance of information being created across any kind of device, any location.
We have more content generated than ever before that companies have to be able to work with. With all of this data, we need automation. We simply cannot throw humans just at these problems. We have to be able to scale our workflows, our business processes by leveraging automation. You're gonna see automation as a major theme, both in our strategy today, but also in what we're gonna be doubling down on going forward. Finally, as we have more data, we're working in more locations, we're working across a broad network. We can no longer protect our information just by securing the perimeter of our organization. It doesn't work just to throw a firewall at this problem and assume that we're gonna be able to protect our most valuable information.
We now need to secure the flow of information as it's being accessed from anywhere in any location, and in particular, as it's being shared and collaborated on by people outside of our enterprise. When we think about how much work has changed from three years ago and before to today and going forward, everything is different. At the center of this work is our content. It's our most important intellectual property and business information that we work with.
Every single business runs on content, whether it's marketing agencies or media companies that are producing critical intellectual property, or consumer product companies that are designing a brand-new product and bringing that to life through CAD designs and prototype files and brainstorms, or if it's through life sciences organizations that have to do critical research and development and be able to collaborate across a variety of partners all around the world, content is at the center, and heart of how we work. Every single line of business runs on content. Again, we talked about product development being in CAD designs. Finance teams run on contracts, and invoices, and financial records and data and models that they have to be able to build out. Operations team needs supply chain data and be able to work across a global ecosystem of partners.
Sales teams are working with critical digital assets and contracts that they have to work with customers on or sales presentations to be able to close the next big deal. HR teams are dealing with reams of data when it comes to HR records, contracts, and other employee information. Marketing teams are generating a wealth of digital asset content that needs to be secured, protected, and collaborated around. In every vertical and in every line of business, businesses today are running on content. Yet, when we go to a lot of organizations, when we first start our conversation with an enterprise, oftentimes they're not managing that content securely or strategically. They have content fragmented across a wide variety of technologies and systems. There's content in legacy document management or enterprise content management technologies. There's content inside of network file shares or behind the firewall.
There's content in shadow IT tools that have been brought in by end- user employees. Or there's content that's fragmented across workflow and point solutions that end users or lines of business have brought in. The challenge with this content fragmentation is that it means that we have massive security risks and compliance risks. Our content is now in too many different silos, so we can't manage it, or centralize it or understand who has access to what. That creates major risks around security, especially in an age where we're seeing increased ransomware attacks and internal and external threats. This fragmentation also leads to slower productivity.
If an employee, or a team or department, doesn't know what content to work on because they don't know what system is the source of truth or what's the authoritative copy of a marketing asset or a project plan, that slows down productivity massively. Finally, it means that enterprises are dealing with an increase of cost and complexity by managing so many other legacy systems. They have to have all of the technology that gets implemented and then integrated, and then the human and operational time that goes into working with those systems. Especially in this economic environment, it is untenable to have content fragmented across all of these redundant silos that cost a tremendous amount of money to maintain and operate. Our vision is to really end this problem.
We are building out the singular Content Cloud to power the full lifecycle of content in a single cloud platform. As we've talked about in the past, and we've been showing off to our customers, that platform is all about powering the full end-to-end lifecycle. Everything from the moment the content gets ingested into the cloud, to when that data needs to be secured and protected from ransomware attacks or other threats, to being able to classify that content so you know what you're working with, to collaborating in real time on nearly every file type in the cloud, as well as new file types that didn't exist just a couple of years ago, as you'll see with products like Box Canvas and Box Notes. Being able to drive automated workflows. Anything from an invoice process to a contract lifecycle process.
Getting an e-signature at the end of a workflow that deals with mission-critical contracts. Being able to publish content to teams and departments and throughout the enterprise, or get rich insights and analytics, so you know exactly what's happening to your content, who it's being shared with, who's accessed it, how popular is certain content, so you can make key business decisions from that data. Then finally, being able to retain that content at the very end of the process. That is the full lifecycle of content that our customers are dealing with, and we are building out the leading platform to have an integrated solution with all of these capabilities. Customers don't have to go out and buy separate technologies from separate vendors and integrate these tools themselves. They get a single platform that powers that full lifecycle.
Most importantly, that platform then extends into every other application that our customers are working with. One thing that I'm incredibly proud of is the openness and interoperability of the Box platform. One great way of identifying and highlighting how significant this is for our strategy, throughout BoxWorks and CIO Works, we've had Thomas Kurian, the CEO of Google Cloud, Arvind from IBM, Eric from Zoom, Yamini from HubSpot, Jeetu, who runs Webex at Cisco, and many other partners, Kirk from Microsoft, showing how well Box is integrated across all of the technology that they are managing and running for their customers. You can see that we live and breathe openness, and operability, and interoperability across the entire stack of technology that our customers are working with.
What you're gonna see from us going forward is both a continued doubling down in that full life cycle that extends the full value of content in an enterprise, as well as ensuring we've got a powerful open platform that integrates into our customers' most important software, whether that's Microsoft Teams, Microsoft Office, or other applications they've chosen, like Slack or Salesforce or ServiceNow, Webex, Zoom, IBM Technology, Google Workspace, and many other applications. Increasingly importantly for our customers, the ability to take the value from our Box platform and extend it into their own applications. Being able to develop custom apps built on our APIs as well has become increasingly important.
At BoxWorks, we are super excited to unveil a whole bunch of new innovation that our customers have both been asking for, as well as things that are gonna continue to leapfrog the rest of the market. I'm excited to introduce Diego, who's gonna walk through some of the updates and announcements that we made earlier today to our customers. Diego, over to you.
Now I'm super excited to now move to describe all the product roadmap that we want to share with our customers, and for you to basically see what's expected in the near term. We are going to cover all the aspects of the Content Cloud, where enterprises get frictionless security and compliance across all their content, seamless collaboration and workflow, and basically across remote, hybrid, and in-person teams, as Aaron described earlier, so we can work from anywhere and in any of the scenarios. Also, the integrations with all the different apps that are so prevalent now and so varied that we are consolidating, but also allowing to work basically from anywhere, no matter where the content was created.
Moving forward, we're going to basically start with a roadmap that is centered around these key differentiators, where we will start first with the collaboration and workflow section. Our goal at Box is to empower teams with the tools to collaborate securely and efficiently, no matter where they might be in the world. When it comes to how people work around the world, there is now a new normal, and while hybrid work promises great enhancements and extraordinary flexibility to get work done, how and where we're most productive, it also presents a challenge, where we want to make sure that we can engage dispersed teams while limiting the online burnout and also provide ways to innovate and collaborate visually.
Also, managing the complexity and the risks and costs of apps and the app sprawl that basically can range from fragmented technology tools to security and compliance issues. Regardless of an organization's size, it needs to be more flexible, and there are digital ways of working that require this innovation. Enterprises now need a collaboration strategy that puts the right tools into the hands of your people and empowers the team and the way they collaborate seamlessly, so there's innovation around the information that drives the organization. Box is rapidly evolving to be both a catalyst and an enabler for that change.
It's been part of our vision from the beginning, and this year we're focused on delivering modern collaboration experiences that inspire users to get work done however and wherever they want, with new higher- value functionality to help your users complete, and any user complete more workloads directly in Box. This week, we're announcing a flexible set of Box native collaboration tools, Box Canvas, Box Notes, and Content Insights. With these tools, users can push the boundaries of how to easily collaborate on all the amazing things an organization does. They will be able to host interactive workshops, create detailed visual documentation, or curate published content, and they will be able to do that right within Box where the content lives.
To the point that Aaron made earlier about keeping content secure, reducing the points of entry for potential attacks, and optimizing productivity, this integration of collaboration is essential for that as well. Additionally, as they begin to share content internally or externally, they will be able to get insights on how it is performing. The Content Insights of tracking how the content is being used for the sales, for marketing, for training, for all kinds of different purposes, we are extending the platform for tracking and analyzing the performance of the content itself. Of course, with this toolset comes everything associated with Box, security, compliance, workflow, automation, integration, and with the go-to apps and more. Let's dive, you know, into a quick dive now into a few of these new capabilities.
With the all-new Box Notes, we give users a secure, real-time experience for quick and seamless text-based collaboration, where Notes can also help teams tackle more extensive documentation, project management, and development type of tasks. The entire editing and collaboration engine has been updated, and we began rolling this out to customers in mid-August, continuing through mid-October. We're mostly now reaching the 100% rollout of that, you know, product, and the full innovation that we put into Notes. Now, hybrid and remote teams need tools that go beyond traditional communication styles, beyond text and images. We're very, very excited now to announce again and launch Box Canvas, our new visual collaboration and online whiteboarding tool.
Canvas will be rolling out to customers in a public beta in mid-November with the emergence of the hybrid workspace, where there's a lot of digital content being shared and distributed. Box's new Content Insights feature, releasing in the fall, will also allow users to understand the content impact, as I was mentioning earlier, to see how the content is being consumed, how often, how much, which days, by whom, and at the same time of whomever else is consuming the content, where the analytics and insights are right at your fingertips whenever your team needs them, so you can make stronger content decisions based on the insights and not guesswork. Moving over to the workflow and Box Sign products, a critical part to empowering customers to work together from anywhere is the ability to transact digitally.
Last year, and in general, we've been seeing through, the pandemic the adoption of more and more digital means to solve scenarios that used to be on paper. For that reason, basically, we rolled out Box Sign globally to deliver both unlimited electronic signatures in the Content Cloud and e-signature extensibility via APIs and integrations. As you saw in the first half of the year, the Sign team has been on overdrive, delivering several critical features, including batch send and ready Sign links. We're continuing that momentum, focusing on enhancing Box Sign to help address more complex and higher volume use cases, unlocking more content and cost-saving opportunities, also helping you streamline e-Sign workflows by making Sign more extensible, both via third-party integrations as well as APIs.
In addition to that, we are enabling enterprises to reduce complexity to deploy e-Sign and content workflows at scale and in the Content Cloud. Now let's take a look at some of the key features coming soon on Box Sign. With custom branding, we're enabling customers to drive brand awareness and offer their clients, partners, and employees an enhanced on-brand signing experience. With multi-doc packages and signer attachments, we are basically unlocking sophisticated use cases that allow employee and client onboarding contract management applications and more. In parallel, we've been working on extending the ecosystem of Box Sign integrations. In addition to our marquee integration with Salesforce, I'm excited to share that we are announcing Box Sign integrations in several areas, including contract lifecycle management, enterprise resource planning, rob otic process automation, procurement operations, forms, and more.
This includes partner integrations with UiPath, Appian, Cruise, VersaFile, Sora, JotForm, and others. Additionally, we have integrated Box with SIGNiX, a leading online notary vendor that will help our customers supplement e-signatures with online notary services. Finally, e-signature can be just one step of a larger business process where we are accelerating the investment into tighter integrations across the Content Cloud. Integrating Box Sign with Box Shield and governance enables us to deliver differentiated solutions and workflows with built-in security and content retention.
We are continuing to build more and more capabilities into Box Relay that will provide the flexibility to deploy automatic content workflows at scale. Now, if we move to the security and compliance highlights, we tend to see three challenges when it comes to cybersecurity. First, the ensuring of a Zero Trust access model. Second, the preventing of data leakage. Third, the protecting of your organization against threats.
Good news is that Box is uniquely positioned to help companies successfully navigate these challenges. Let's start with Zero Trust. Zero Trust access is becoming ever more important because 61% of breaches last year leveraged credentials. That's why we're focused on providing the most robust identity and access management capabilities. Soon, we'll be adding email-based MFA and backup codes as an authentication option, plus we are going to be bolstering Zero Trust access for Box admins. Enterprises also have the ability to terminate and basically have termination of user sessions with programmatic self-service remediation via the API and leverage Box Shield detection rules to protect against account takeover threats, moving us towards adaptive access. Now, even better, Box is also adding group-based device trust, where we have policies to give us the granular control that our customers have been asking for.
Lastly, we're also extending our security integrations in the Box Trust Partner Program with partners that are in the EDR and IAM space, where our customers will have better protection through real-time sharing and risk signals, dynamically enforcing Zero Trust access. As you know, the average cost for data breaches has reached an all-time high of $4.35 million per case. Preventing data leakage of sensitive content is becoming even more important than ever. I'm excited to announce Ethical Walls, a new feature in the Box Shield portfolio to prevent the exchange of information between different user groups within an organization internally that also could lead to conflicts of interest. This information barrier can be used to safeguard insider information, especially helpful for our financial services customers. That is in beta now, and it's in GA coming very soon.
Now, we'll also be expanding our document watermarking capabilities, which is especially important for the media, retail, and entertainment customers. We're adding support for video files as they are one of the fastest-growing content types on Box, growing about 46% year-over-year to more than a billion videos. Last year, we introduced also Malware Deep Scan in Box Shield, which is based on deep learning malware scanning technology that helps basically security teams identify emerging and unknown malware types. Today, we're excited to announce that we've added coverage for new file types, including Microsoft Office. We also fine-tune our detection model to lower false positives, and we're improving alert event descriptions so SecOps teams can better respond to incidents. All of this is in GA now. Next one is one of my personal favorite topics, ransomware.
As you know, ransomware has been basically, you know, in record highs now, where researchers have recorded 935% year-over-year increase in double extortion ransomware attacks. To help counter that, we are the first going to introduce a self-service content recovery tool for Box admins to augment existing ransomware recovery support for, you know, these processes. Box admins will be able to more easily restore impacted files to a last known good state in a matter of minutes, bringing a recovery operation that normally takes weeks down to 15 minutes. Lastly, we continue to enhance, and continue to invest, and extend our ML-based ransomware detection and impact containment with our Zero Trust security controls. As you know, security is only one of the sides of this equation, content governance and compliance being the other.
Our customers tend to see two key challenges in this area, how to manage content through its lifecycle and how to comply with industry and regulatory compliance. We're experiencing exponential growth of data, especially with hybrid work. That's why these areas are essential in conjunction with security. This is why this year, we made substantial improvements to retention in Box governance. We released modifiable retention to provide customers the flexibility that they asked for, and now they can easily update retention policies as business needs evolve.
Going forward, we'll continue to make enhancements that include making it easier to export content under legal hold, adding trash disposition and actions that accelerate the disposition through using trash, and also lastly giving you basically and our customers the reporting and disposition insights that they were asking for. The second challenge we hear is the growing complexity of the industry and the regulatory landscape. That is why earlier this year we basically released GxP Sandbox. Basically, the GxP Sandbox testing for our life sciences customers is essential, where we expanded our global footprint with a new Box Zone in France. With that, we actually are helping organizations address the data residency needs in basically the need to stay within region for content storage.
For the U.S. public sector, we also have received StateRAMP Moderate authorization, and now we have Box for GovSlack integration. I'm also excited to announce that we have FedRAMP High with the authorization to operate the ATO from the VA. With this authorization, which includes an independent assessment for over 421 security controls, it allows the VA to expand their use of Box for controlled unclassified information. These items are yet another testament to Box's cybersecurity posture. Now let's switch gears a little bit and talk about our admin improvements, where we are going to support Box admins with added controls, reporting, and also insights that they need to use to excel in the orchestration of their environment. We're focused on expanding rich insights to give customers quick and actionable information about their Box account.
With insights into delivering analytics, visualization, and calls to action that give admins transparency into what's going on across their organization, with the ability to easily take action on any abnormal activities or any strange elements that they find in their network. Now moving to the third pillar of the differentiation that I talked about and that Aaron also mentioned at the beginning, we have platforms and integrations. We know how important it is to users to have the choice of technology that they use and what they work with. We're making it easier than ever for customers to seamlessly integrate with over 1,500 integrations. You know, Box, without sacrificing any security or manageability of their content, has been able to integrate with all of these different applications while also adding elements to our portfolio, maintaining the neutrality that Aaron spoke about earlier.
Starting with the new Box App Center, the all-new, you know, fully renovated and released recently, admins can install any application in, you know, for their organization needs, and users can easily see which tools they have available to them, previously approved and selected by their administrators. This empowers users to work how they want with the visibility and access to their network and everything we offer of the ecosystem of partners that we have with these 1,500 integrations. Now, another very important integration we have that is worth highlighting directly is our Box for Salesforce integration that lets customers access and manage their sales content directly of what they have in Box without leaving their CRM. There, users can request signatures with Box Sign without ever leaving Salesforce.
Coming soon, admins will be able to enable a custom folder structure in Box mapped to Salesforce objects and records directly. With that, they will also be able to search Box files across Salesforce altogether. In addition, we have continued advances with our major partnerships as well. Aaron mentioned all the different key participants that we've had. Microsoft, for example, has been a key partner with exciting announcements and major enhancements that deepen how we access Box files within Teams and how our customers can also do co-authoring on Office desktop files with edits auto-saved to Box. Another important partnership is with Zoom, where we have new capabilities to save select Zoom meetings directly, and those Zoom meeting recordings directly put into Box. With Slack, we have the ability to set Box as the custom file store for the Slack instance.
If one of these integrations is quite what your customers need, Box Platform allows them to also take advantage of our APIs and developer tools that can extend Box to meet any scenario. Our concept is you can integrate with any of these or use any of these 1,500 integrations, but if you want to use the APIs, the functionality is available through our SDKs for you or your partnering software developers or other suppliers of software to integrate directly with Box functionality. Our platform is focused on continuing to simplify the developer and admin experience, which basically includes the following UI elements. The UI basically is extended to developers. The Box UI features are all available to basically provide customer applications, and custom applications, and portals directly done by third parties.
The CLI automation library, so admins can automate repeatable tasks like user provisioning and zone assignments for users. The custom app insights, so developers can define and view the key information about the apps. Basically, they get all the apps they create in their enterprise, and they are all basically available from a single place. The sample app that, which is basically sample code, very common for basically simple common applications and use cases for development to take that from that library, an accelerant for development. The enhanced platform reporting that allows for better API usage reporting and higher accuracy to help customers understand the Box Platform usage. All of this is part of this continuous effort for basically going throughout the year to accelerate the time to value with Box Platform. Well, thanks for the time.
I went through many different, you know, components to basically represent the different areas of all the things we're launching this year. We are hyper-focused on building Box to be the most powerful and robust content services platform in the market across collaboration and workflow, security and compliance, and platform and integrations. Now, Aaron and I will be happy to take your questions. Let me now turn the presentation back to Cynthia for Q&A.
Great. Thanks so much, Diego. Before we open it up to Q&A, just a reminder, please limit your questions to our product strategy and announcements. We are not providing any financial updates or commentary on the quarter during this call. To ask a question, please use the Raise Your Hand function in the Reactions icon at the bottom of the Zoom bar. You can also provide your question in the chat function, which will only be viewed by the moderators, or you can email us at ir@box.com. Our first question is coming from Josh Baer at Morgan Stanley. Please unmute, Josh, and go ahead and ask your question.
Great. Thank you. Question for Aaron. As we continue to innovate and roll out all these new features across collaboration, workflow, security, governance, how should we think about the balance between addressing a larger TAM and maybe benefiting from consolidating some of that IT spend in different areas versus running into new or more competitors at play in some of these markets?
Yeah, great question. We spend a lot of our time thinking about that very dynamic of, you know, adjacent categories, starting with content at the center, how far do we want to expand into adjacencies and making sure that we're doing, you know, we're driving innovation in areas where we have a right to play and a right to win in that market, versus areas where actually we'd be better off partnering, driving deeper integration with our partners in those use cases. We spend all of our time thinking about that dynamic as we look at our roadmap.
Everything you saw in the presentation today throughout BoxWorks and from Diego just now, we believe we have a very strong position to win in these markets, whether that's advancing workflow, whether that's a lot of the core use cases around e-signature. Canvas is really just a natural extension of how you collaborate on content in the cloud. In the landscape that you've currently seen, we believe that we can be a very strong player across these use cases for Box customers. We do often, you know, have debates internally, and we decide, you know what? We think a particular space actually makes more sense to partner in, and we'd rather integrate with the leading players in that space.
For the most part, if it has to do with content, whether it's securing that content, automating workflows around that content, collaborating around that content, or at the end of the life cycle, retaining, governing, driving data privacy or discovery on that content, you know, we believe that we should have really, really world-class first-party features in those areas.
Maybe one quick thing to add. One element that sometimes is a big differentiator is that some point solutions that don't have a platform basically present an opportunity for us to help the customer have that result in a platform way. Having electronic signatures stand alone is not as powerful, but having them integrate with the security features that we have, the ability to automate, the ability to be compliant, the ability to basically be close to where the content is, makes it more powerful. The same thing about whiteboard- type of collaboration and so on. Anything that we add tends to have that extra synergy of the integration with the platform that point solutions cannot do. That extends the TAM to things that others cannot perhaps capture.
Great. Thanks.
Thanks.
Thank you, Josh. We have a question from Jason Ader, William Blair, and the question is:
Which of the new product announcements has the potential to be the most impactful?
Thank you. Thank you. This is the hardest question to answer. Which child do you like the most? I would say, the most important aspect of the new elements that we're launching is the integration to that platform that we have. The fact that they are not standalone.
Right.
The fact that they actually work together. We're always focused on the immediate next thing to deliver, but we maintain a significant level of focus on everything we already launched. We're not going to stop innovating and adding features to each one of them because we truly love each one of them. All of these different children that we are basically giving birth to, where we basically have Sign. Sign is not going to stop having new features while we are launching Canvas. We're going to continue to innovate also on our infrastructure as we continue to deploy globally and keep adding zones in different places and the addition to ML and AI to continue to advance the way we operate internally and build the application.
To me, the most magnificent part is that it's actually all in one place, all in one platform, all integrated, all secure and compliant and governable like nobody else does, while maintaining neutrality, which is also quite extraordinary. Meaning other companies go with point solutions or platforms that are closed, and our motto is stay actually connected, work with all of them.
Yeah, I would underscore that it's very hard to pick favorites, because they represent different parts of the value proposition, all with integration being the kinda core ultimate value we offer. Some customers we talk to get super excited about Canvas, and being able to you know, change how they do collaboration and brainstorms with Box. A lot of customers get really excited about our e-sign features because maybe they've been waiting for a couple enhancements, for them to be able to roll it out more broadly. CISO is, you know, very excited for a lot of the innovation we're doing in security. Very hard to pick a favorite. It's really the value of the integration.
I think the only other thing that I would underscore is because of the breadth of innovation you're seeing, you can tell that we're driving a high degree of just innovation velocity, which is super important to our customers.
Great. Thank you. Our next question is coming from Erik Suppiger with JMP. Erik, please unmute.
Thank you for taking the question. Curious, how do you think this positions you relative to Microsoft Teams? Where are you seeing the customers most open to adopting you in place of Microsoft Teams and-
How can you talk a little bit about how you think that road is going to evolve?
Sure. Yeah, I'll maybe just kick it off with our high-level Microsoft philosophy, and Diego can build from here. Overall, you'll see this at BoxWorks directly. We had Kirk, who is the COO of basically all the kind of end- user apps on the Office 365 side at Microsoft. He you know further endorsed, I think, and underscored our partnership. First and foremost, we wanna integrate with Microsoft Teams. Microsoft Teams is used for video collaboration, real-time communication and chat, application development. Those are not spaces that we focus on. We only care about content. We integrate quite nicely and quite complementarily into Microsoft's Teams environment.
Where we differentiate heavily from Microsoft broadly is unlike the Microsoft stack, which has OneDrive, SharePoint, Teams, and a variety of other ways where you can manage or work with data, we provide a single platform that is integrated across the complete life cycle of content. Storage, sharing, security, governance, collaboration, workflow automation, e-signature, that entire life cycle in a single platform. For customers that really, really have mission-critical workflows around content, a bank that has to onboard clients, a life sciences company that has to do clinical drug discovery, a media company that is working with a ton of digital assets and media content, this is the lifeblood of those organizations. To them, they don't wanna fragment their data across the different platforms.
They wanna make sure they have a single platform that's secure, that's compliant, that's protected and integrated across Microsoft Teams, Salesforce, Slack, ServiceNow, maybe in some cases, competing companies, that they wanna make sure they have interoperability with. That's how we end up being very, very differentiated across the Microsoft, but even broader competitive landscape.
Are you-
Yeah, I mean, Go ahead, Erik.
Are you typically deployed alongside with Teams?
In a Microsoft Teams organization, we would be deployed along with Teams, but we also have a lot of customers that use Slack and Zoom instead of Microsoft Teams. I would say Teams is just one of the many applications that our customers are rolling out. It's obviously an incredibly popular and dominant one in the broad collaboration space. Yes, we do jointly deploy with Microsoft Teams in those Microsoft environments for sure.
Yeah. I was going to address exactly that second part of the question that you just brought up. The benefit to Microsoft of collaborating with us, among other things, is that for customers that actually want to have something beyond Microsoft, we are the bridge. If you use Teams and use anything from Salesforce, say Salesforce, the way to keep the content flowing from Salesforce to Teams is through Box. We are the unifying content layer there that neither company can do on their own. Sometimes even within the companies, they cannot do it very well either. If you work with Salesforce and with Slack, we also bridge that gap because they haven't integrated anything natively, and they probably will not because we solved that problem already.
Both companies need us for sometimes internal integration and sometimes cross-company, cross-supplier integration, and our customers need that much. In order to reduce the friction of, "Well, what do we do if we have Microsoft and Salesforce? Maybe we should opt for something else," that the customer may wonder, by having Box and Teams, they solve that problem. It's kind of a good status quo where basically we provide a solution for that interoperability.
Great. Thank you. Thank you, Erik. Our next question is coming from Steve Enders with Citi. Steve, if you can unmute.
Hi. Great. Thanks for taking the question here. I just wanna ask about the FedRAMP high that you achieved with VA. I guess, how should we kinda think about what that kinda means for the broader opportunity within the federal space, and what that also means for the state and local opportunity going forward?
Yeah. FedRAMP is super important to us. All things compliance, security, data privacy is a core focus. VA has been the partner on driving our FedRAMP High initiative and is the first customer to leverage that. It's still going through the full authorization across all FedRAMP, but VA is deploying in that capacity right now. Overall, we see a ton of opportunity across SLED and federal. We're doing great state-level and city-level deals that are increasingly meaningful in size. We've long had a very robust still, you know, kind of increasing in scale, but robust federal business. You know, organizations like NASA, Air Force, and others that we've made announcements around.
We're super excited about the work that we're doing in the federal space, and we see a ton of opportunity because if you think about, you know, the trends that are driving any corporate environment, those trends are, in some cases, even more significant in the public sector. A ton of legacy infrastructure, a ton of legacy enterprise content management systems, and yet extremely mission-critical, very, very security-intensive use cases around content. We think our platform is well set up for those use cases.
Yeah. The digitization that goes together, so you have the compliance world and also the move to digital that the government adopted tremendously because of the pandemic, now basically is becoming a norm. The combination of the two works. In our roadmap, we keep investing in things that are very much basically benefiting the federal space. StateRAMP, as you mentioned quickly, is another one that we recently got certified for the same reason, and it's important for us. We will continue to prioritize it, and we see many customers and a big pipeline for that sector.
Perfect. Thanks for taking the question.
Thanks, Steve.
Thanks, Steve.
We have a question that came in through the chat. Can management tackle the long-term concern that more workflows eliminate file sharing for in-app multi-tenant collaboration? For example, will Adobe users rely less on Box if they embrace Figma?
Yeah, this is a super important topic, you know, philosophically over time, is sort of what's the role of content and files as it moves to the cloud. This is increasingly why you're seeing us invest in a lot of cloud native partnerships and integrations. Our integration with Microsoft Office 365 in the cloud lets you stay completely in the browser and do all of your editing of documents inside the browser. We have a very similar partnership, and Thomas Kurian from Google had a conversation with us on stage at BoxWorks about that same integration that we have, but with Google Workspace, which is Google Docs, Sheets and Slides. We also now have our own entrance into this space with Canvas and Notes. We think the role of the file is changing.
It's moving from being just a desktop- type use case to now being a web-based, yeah, use case, and we're gonna be integrated into all of the major applications that our customers use in the cloud. We think this is only a good thing for the long-term trend to have more collaboration in the cloud, more generation of content, more need to be able to work with those digital assets across a wide variety of applications.
Yeah. I would say the importance that every company, including Adobe, are giving to collaboration and basically solving the digitization, you know, trends further is going to continue to basically prove that our investment on Canvas is reasonable. I don't think there is a problem with workflows in that scenario because basically we can continue to workflow mostly anything that we integrate with as well.
Great. Thank you. Another question that came in over email: To dive a little deeper into Box Sign, can you talk about the strategy here as far as competing against other e-signature vendors such as Adobe or DocuSign, and when you would be, I guess, at feature parity against those particular vendors?
Okay. I can tackle that first.
Yeah.
Our strategy has been to launch and focus on the center of the center of the feature sets that are most essential and gradually move to the corner use cases. It's okay during the first phases of a launch that we don't cover every corner use case, and we intend to solve what our customers are asking. They say, "Hey, please, can you deliver something that will do 90% of the features soon, and then gradually extend to the corner use cases? Because we may buy a few licenses, perhaps of those other point solutions, but we want to do the majority, the vast majority with Box." We are delivering to that premise first.
It doesn't mean that we're not building the most extraordinarily excellent product and that we will not continue to also extend to those corner use cases as time goes by. We are doing those extensions to the corners as customers provide feedback, and we triage. As I mentioned during the first question, we want to make sure that we continue to develop every product that we launch. Sign was launched already, but we will continue to expand. Now, there is no specific date for feature parity because obviously it depends not only on us, but on what others do. There are some areas where we are already ahead. The way we integrate with workflow, the way we integrate with security, and the power of the platform that we were talking about is already ahead of many.
The compliance points that some other vendors, without maybe naming names, but you can, you know, some of those that you mentioned in some areas are not as compliant as we are. It's already a differentiator, even though we launched it not too long ago. We will differentiate and be ahead and leapfrog in some areas, and be patient in others. It's all driven by customer need. Now, you should expect that over time, we not only will be at feature parity but surpass, but we don't intend to claim that we will surpass everywhere or at any given date because that's not what our customers are asking, actually.
Great. Thank you, Diego. Our next question is from George Iwanyc with Oppenheimer.
Aaron, can you expand on the areas where Box is really doubling down on R&D? Also, where can automation be expanded? Tangential to that is, what are nearer term focus points versus longer term strategic objectives with regard to products?
Yeah.
Okay. Workflow that we mentioned in different ways, and especially some types of business workflows, is one of the areas. It's not the only one, but it's one of the areas where we will double down. The integration of Sign and workflow and the addition to basically bring the ability to have templates or initiate processes that actually start a document as faster and easier to go for signature is one area we will continue to invest and accelerate in our portfolio. Of course, security, compliance and governance and enterprise management of assets is essential, too. That pillar will always be essential for Box and will continue to be an investment area, but in particular because of what we see in the market.
All these attacks that are so prevalent are an area of serious concern for every enterprise and of course, for us as well. Protection against malware, internal and external actors, protection against ransomware and all the prevention we can do there is of high value, and we will continue to double down on that. Aaron mentioned the importance of also working with APIs and have everything we do with the ability to have third parties or our customers directly use them, taking our SDKs, is one of the fastest growing areas for Box, and we will continue to invest there. Mostly every one of these three pillars.
Yeah.
that you see are going to continue to get investment.
I think the thing that is super exciting is, we just got done with a couple maybe even two months worth of product strategy sessions that sort of look out 18-36 months in terms of where the product is going. The richness of innovation and the expansiveness of the vision is really incredible. I've never seen anything like it in the history of the company. For us, what we get really excited about is just literally how large this category will become. I think in some cases has been either underdeveloped or hasn't been able to reach its full potential because of the fragmentation, because there hasn't been kinda cloud-first solutions that take a platform-oriented approach.
You're gonna just see a ton of innovation across security, workflow, collaboration, APIs, everything that obviously we've talked about today. There are, you know, significant spaces that we're gonna continue to expand into.
That's great, thank you. I guess this is a good follow-up to that we got via chat, and it will be our last question is, as you approach all these new features and products, Aaron and Diego, are we always going to be including them within a suites package, or will any of these particular products or features be priced individually? What is the strategy there for Box?
We don't intend to nickel and dime our customers. Our customers are very happy with the approach we've taken with suites and the integration of value. In a way, we are taking the monies we get and reinvesting them back and giving them back to our customers. It's working really well both for the growth of Box but also for the growth of our customers. The approach we have is working, and we'll keep it that way.
Yep. I think the exciting thing is being able to have this multiproduct, you know, suite strategy, which of course will continue to expand over time in terms of additional packages on top of the existing ones. The planned, you know, kind of, packaging that we currently have will continue to get more robust in time. We also have consumption-oriented models with APIs that let customers integrate that functionality into their applications, which creates yet another vector of growth over time. As Diego mentioned, the model is working extremely well. It has been largely responsible for a lot of the go-to-market transformation we've been able to drive in the past few years, that is, the simplification of packaging and getting customers to move up our plan tiers.
You're gonna see us continue to double down in this space.
Fantastic. Well, Diego, Aaron, thank you very much. For those watching, all of this presentation will be on our IR website, and all of the other presentations from BoxWorks 2022 will also be available on the box.com website for you to view. With that, we look forward to updating you on our next earnings call and our next Analyst Day, which is gonna be targeted in March of 2023. Thank you.