Box, Inc. (BOX)

Analyst Day 2017

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Oct 12, 2017

Hi, good afternoon. Thank you so much for joining us here today. My name is Stephanie Wakefield, as hopefully many of you know, and together with Alice Lopatto, we run Investor Relations here at Box. And I guess I should be using the big mic. So first, wanted to start off with the Safe Harbor statement for today's comments. During the course of today's presentation, we will be making forward looking statements, including statements regarding our expected financial performance and future products and services. These statements reflect our best judgment based on factors currently known to us and actual events and results may differ materially. Please refer to the risk factors and documents we share with the SEC, including our most recent quarterly report on Form 10 Q for information and risks and uncertainties that may cause actual results to differ materially from those set forth in the forward looking statements we make today. These forward looking statements are being made as of today, October 12, 2017, and we disclaim any obligation to update or revise them. In addition, during today's presentation, we will discuss non GAAP financial measures. These are non GAAP measures should be considered in addition to, but not as a substitute for or in isolation from our GAAP results. When we post today's presentation in the IR section of our website, they include disclosures regarding these non GAAP measures, including reconciliations with comparable GAAP results. With that out of the way, I just wanted to take one minute to set some context for today's presentation. As many of you know, I started consulting at Box just about 2 years ago. And I've been now full time for about a year. And be fair to say, when I started consulting, I was a little skeptical. And as I got a chance to get to know the company, I started to get really excited because it seemed like there were components that made for a really great opportunity and a really great company. And some of those things were products. So at the time, it was single product, but it was starting to add more products. The customer loyalty is reflected in the churn rate and customer references, but a very happy install base. The leadership team, which may be younger than most is incredibly knowledgeable and passionate and eager to add experience to the team and take counsel from that experience. The partner ecosystem, which was strong at the time, and has been building even further. And the corporate culture and that's something I think doesn't get mentioned nearly enough as a critical factor success. The culture here, not just working with Alice and with Dylan, but the entire team working together, it's a really great collegial environment to work with to really focus on achieving our goals. So I've been here for a year now and it's just exciting to see all of those components really come together. The partner ecosystem with a number of announcements we've made over the past year has gotten a lot stronger. Customers continue to be very happy. The product announcements we're going to go through today, I think are really exciting. And the other element of this is that I've become a constant box user. I live the future of work every day, collaborating on our technology and not just being able to see a file, but being able to collaborate on it, not e mail and answer back. Not having to worry about version control for an event like this because we're all collaborating in one document in real time, makes my life so much easier and it's hard to place a value on that and the security of that environment. So I think it's a really exciting time for the company, the opportunity, the technology, I'm excited to share that with you today. And we're going to go through I did the Safe Harbor. We're going to go through, Aaron and Jeetu and Neil kind of setting up opportunity with Steph, Carrillo and Dylan talking about the actions that we're taking. And then we'll have a Q and A at the very end for everyone to ask questions. So with that, I would like to turn it over to Aaron, ready with his coffee. Thank you, Stephanie. How are you doing? If it makes you feel better, I was never skeptical about you coming aboard. So we do not share that, but thank you. Stephanie has done an unbelievable job helping us build a deeper relationship with all of you. And it's really been great to work with you over the past little over a year or so. Thank you so much Stephanie. We are at a pretty, I think exciting inflection point as an organization and it's, I guess, not so coincidental that the structure of today's conversation actually represents that inflection point. So what Jeetu and I are going to talk about is what we're doing from a product standpoint to transform our platform and build a leading content management platform that changes how people can work with their information. And then Stephanie, in particular, is going to talk about what we're doing from a go to market standpoint to really turbocharge our ability to get the technology in the hands of customers all around the world. So this summer has been operationally a very exciting summer within the company because we have both our product and platform organizations now being led by G2 and we've gone through a transition where Stephanie coming on board with 25 years of experience at IBM, Apple, Cisco, Telstra, serving large enterprises and really helping us bring together and integrate our global go to market functions. She's really very quickly ramped up faster than I think we even anticipated. And so I think she's going to share some of the ways that that's coming together. So big inflection point on product and big inflection point on go to market all coming together. And then our job as an executive team is to make sure that this all works together harmoniously with a culture that we can be really proud of and that continues to let us innovate and stay ahead of the competition. So our mission at Box is we want to power how the world works together. Is what we get really excited about is all of this opportunity to change how people work, share, collaborate and access their information from anywhere. And we started 12 years ago with a similar idea, which was we wanted to be able to as end users be able to access files from anywhere. And so being able to bring this into the enterprise at the scale that we have is very exciting. We now have over 70 6,000 customers on the platform, 65% of the Fortune 500 is now using Box and we have over 100,000 developers that are using the Box platform. And actually, I don't know how many of you were able to attend G2's keynote just a few minutes ago, but it was incredible to see the kinds of customers on stage sharing their experiences of what they've been doing with Box to transform their organizations. We had Walmart come share how they're driving their digital learning technologies and platform using the Box platform for the content engine as well as some of the great partners that we're working with. We have Medidata, one of the leading life sciences software companies in research platforms that are building on top of box share their experience, in front of all of our customers as well. So really, really great healthy ecosystem of that intersection of developers building amazing applications, and customers really taking our technology and using it for all new use cases and in all new ways. And what's, I think so unique about Box and so unique about our product space in particular is that we work with companies that are 3 or 5 or 10 employees all the way up to some of the world's largest enterprises. So again, Walmart being on stage sharing how they're leveraging our platform for 100 of thousands of employees being trained within their academy experience. But yesterday, we had Brian Chesky from Airbnb talk about their cultural transformation. They're an exciting customer that uses Box at scale for collaboration and so many other organizations with amazing missions. We've had some great success recently in the government space due to our FedRAMP compliance. So organizations like NASA, like FDA, FCC, the Department of Justice and so many others are now leveraging Box for their content management collaboration. In the digital arena, as I just mentioned with Airbnb, but also companies like Spotify and other organizations that are leveraging our technology to scale. So it's not just the world's largest organizations. And we're working with obviously a lot of big industrial or Fortune 500 companies. We had Jeff Immelt speak at our CIO event on Tuesday and share how he helped drive the transformation and how his executive team helped drive the transformation of GE. We were really, really fortunate to be one of the partners that they chose to help drive that effort within General Electric. So one of our really kind of transformational customers that we have, but we're able to work with companies like Procter Gamble and Toyota and Eli Lilly and Pfizer and AstraZeneca and so very large sort of Fortune 500 companies that are going through this transformation. And what all of these companies have in common and why companies come so fortunate to be able to spend time with them is, these are organizations that are are so fortunate to be able to spend time with them is these are organizations that are embracing the digital age. And I think we hear a lot about the digital age and digital transformation. Every tech conference obviously has to have slides and content on digital disruption. And what tends to be the focus of digital is how do I build have we can have real time services, how we can have personalized applications, how we can have better relationships with our clients. That's what most of the ecosystem thinks about when they think about digital transformation. But for us, we think that digital transformation means something way bigger. We think that it means that it's a completely and fundamentally different way to operate inside of this landscape. We see that markets are changing faster than ever. So there's no company that has an incumbent or leadership position in their market just as a given anymore. Obviously startups are emerging in every single category of product and service. So we're not confined to the tech industry. That is always top of mind for our Fortune 500 customers is what is the next thing that might disrupt me? What market am I potentially missing out on because I don't have the right team in place? We also know that partner ecosystems are in flux. And this is another kind of fascinating trend which is if my organization as an enterprise is in constant change then that means my partner's organizations are in constant change, which means that I have to find a way to organize and work within that ecosystem with a lot of variability, lot more variability than ever before. And then we're dealing with all new threats and regulations. So it used to be if you go back 5 or 10 or 15 years, I think most of the enterprise world thought that the biggest cybersecurity threat was in banking or any maybe credit card numbers would be stolen and that was sort of the primary digital asset that might be taken advantage of. But now we're seeing digital threats and cyber threats in every single category, every single country. So we've seen it in the government. We've seen it in media. We've seen it in life sciences. We've seen it in health care. And so everybody's data is potentially vulnerable, which is putting a lot of pressure on IT organizations and businesses. And then we're dealing with a lot of new regulations. So literally, if you just take any sort of snapshot of a monthly time frame, there's all new sort of privacy requirements, compliance requirements for every industry. And what we find so fascinating is that even if one of our customers is not directly regulated, if their customers are in a regulated industry, they're likely impacted by those regulations. So you take GDPR as an example, which basically any either multinational company or company doing work with customers who are multinational, they're going to be dealing with a lot of privacy and data management requirements that companies like Box are going to be able to help them with. And so we're dealing with all new threats and regulations. So this is sort of business in the digital age. I think we always think about sort of how does the company compete with an Uber or an Airbnb or a Lyft or a Spotify and we think about the customer or consumer experience. But when you go behind the scenes, these are the bigger challenges that we have to go and tackle. And so we know that every company has to become a digital business. We know that digital companies operate in fundamentally different ways. If you look at sort of how a General Electric was run or it operated 10 or 15 or 20 years ago, it would look a little bit more like the list of things on the left side. So work was more asynchronous, a lot about vertical integration. We need to own the assets and resources internally, a lot of sort of guesswork and intuition to make decisions, a lot of manual driven processes. Now, if we look at how work needs to be done in the digital age, we see that it's real time. Fundamentally, it's about working with the extended enterprise. So how do you get scale by leveraging partners and companies all around you and contractors all around you and how do you actually begin to share and transact and work with those entities. It's about using data and making sure data is available to every decision maker in the organization to be able to make decisions. So data is not just available to the people at the top of the organization. And as we shared with a lot of updates yesterday and today, it's about bringing intelligent experiences to your enterprise. So whether that's back office workflows or the front office or customer facing experiences, how do we make them more intelligent? And then when you kind of wrap all of up and then you think about, okay, well, all of this is going to be information based, which means that information is going to be flowing over the Internet. It's going to be flowing in mobile devices, it's going to be flowing to customers. We have to now think about protecting the virtual world in a fundamentally different way, which means that the sort of traditional sort of firewall based four walls of the organization architecture just doesn't work in the enterprise. And so this is kind of throwing up most of the traditional IT architecture that most companies have that they're dealing with. And so we think this is what the future of work looks like. So if you're ever kind of wondering why is it that a General Electric or Pfizer or Walmart is spending time with Box? What are they thinking about? What are we talking about? It's because they're going through this transformation and they're dealing with all of the aspects of working on the right side of that graph and how do they get there and who are their partners going to be to help them get there. Because what we know is that how we collaborate, how we share, how we manage, how we secure, how we govern, how we create value from our information is at the very heart of the digital age. Digital equals information and vice versa. And so outdated information technology and business processes are in many cases holding our customers back or prospective customers back. And when you look at our category in particular, there's been about 25 years if you look at the past 25 years, there's been about 4 eras of technology that customers have used to try and manage their data and make sense of it and work with it. In the early 90s, it was network file shares. So this was just your classic storage infrastructure. Then you had the need to kind of control it and manage it and govern it and build workflows around it. That's where you needed ECM systems and document management systems. Then all of a sudden people brought in their own mobile devices into the enterprise. They want to be able to share externally. They want to be able to access data on the road so that you had file sharing tools. And then finally, we had to deliver digital experiences for our customers, which meant that customers were beginning to build applications on all new sorts of platforms. And so each of these architectures made complete sense in the time that they sort of emerged. They made complete sense at the time that they were created. And what's funny is we'll show this graph to some of our bigger customers and they'll be like, I wish that is I had. But I have 50 times that. I actually have 7 more vendors in each of those columns in my IT organization, which means I'm paying maintenance or having to manage or I'm having to secure or I'm having to upgrade systems across 4 different eras of architecture from basically innumerable numerous different vendors that I have to go work with. I finally found a word that is a real word. So that was what that's what we're intending to see from customers. So you zoom out and while each of those technologies made sense in the time that they were put together, you zoom out and it ends up kind of creating an entire mess for our customers. So this means our work is fundamentally fragmented. At the end user level, it means I can't find the things that I'm looking for. So what ends up happening is people just bring in their own tools because I don't know where that file is stored. I don't know where that research document exists. I don't know where that marketing asset is. If you look at it, our business processes then get disconnected. The one of the biggest challenges about each of these areas of technology is we still have only some set of information that needs to flow through all of those technologies. And so if you look at a marketing team in a Fortune 500 company, they might have files stored in their network file share. They then need to be able to put it into a digital asset management system. Then they need to share it with a client or a customer or an outside agency and then they just go and email the file. So they spent on the infrastructure for their storage, probably the security around that. They spent on the software for their digital asset management or enterprise content management. And then they're just going and duplicating the file and sending it over the Internet via e mail and they've lost all of the protection, all of the reporting, all of the analytics, all of the security as soon as they send that email. And so that means our business processes are fundamentally disconnected and people are not able to get to the information they need. And so if our business processes are disconnected, we're working in lots of platforms. We have all these data silos. It means that it's really, really hard to secure our information. It's impossible to know exactly where the sensitive IP is in my company because it could be in 50 systems. And I have no way of understanding where the sensitive information goes because the user is certainly not going to tag it. The user is not going to say this is sensitive because the user doesn't have time. So we don't actually know how to secure enterprise information in this architecture. And so we said last year at Boxworks, what if there was one platform that helped companies work in the digital age? It would need 4 things. It would have to be able to enable collaboration and business process across the around the world. It would have to be able to integrate with apps that customers already work in. So whether you're using Facebook Workplace, Slack, Office 3 65, Salesforce, NetSuite, you don't want to have multiple information or content repositories in all of those platforms. You want be able to work across any application and have one source of truth for that content. And then finally, it would have to be designed for all of us. So that would be open and interoperable with everything I'm using and developers would have to be able to build have to be open and interoperable with everything I'm using and developers would have to be able to build on it. And that's really, really hard to find the sort of intersection of technology and product that can those 3 different constituents. And so this is what cloud content management is. It's not a place to store files and share files or access files. It's not just a place to do workflow around content or to government. It's one platform that can solve all 4 of these sets of use cases and customer needs. And what we've been building at Boxes is the leading cloud content management platform. It starts with content, but then you layer in things like metadata, so I can understand more context around that content. We add collaboration, so I can share that information. We do lightweight workflow and now with Relay much more extended and advanced workflow and that lets me work with my information. But that's only the center of what we do because as you know and as you've been seeing over the past couple of years and what Stephanie mentioned is we become a multi product company. So we take the core of that content. That's what most of our customers are using the basics for. And then you want to layer on additional services and capabilities. And I think everyone in this room knows a bunch of these already, but things like Box Key Safe, so I can control the encryption keys for my content. Box zones, so I can do multi data residency, protection policies, which is really included in the core administration experience. Now have over 1,000 customers that have purchased Box Governance. So now I can do data retention and document policies, and then compliance, which we'll get into a second, but obviously critically important for our customer base. And then ultimately we want to give you unbelievable analytics and visibility into what's happening with your business information. So we want to give you all new insights into your content. That is cloud content management from Box. And we're incredibly excited that within this space and within the competitive landscape, we've been able to continue to stay ahead of our competition when we think about how end users and how businesses are going to share, manage and work with their information in the cloud. So we're really happy about the leadership position over the past decade that we've been able to develop. And over the past, we've been extending our enterprise capabilities even further. So that was just a snapshot of this past. But what this conference is all about and what obviously yesterday and today are all about is how do we take this technology even further. So what we've updated customers on is a little bit on the enterprise side and what we want to do to help make sure enterprises can manage, secure and govern their information in the can manage, secure and govern their information in the best way within the box environment. We are going to be updating all new administration console, which just helps customers keep track of the information and users within their business. So that way they have way better kind of controls and mechanisms. We a new end user feature for administrators called Box Insights that we'll be rolling out with that early next year. This is about giving you sort of an analytics dashboard of just again unprecedented visibility into your information. We still want to give all of our reporting and event logs into any system that the customer chooses. So if they want that data to into Splunk or some other environment, that's totally fine. But we also want to make sure that they have a really powerful view of how information is being used within their enterprise that's tuned for collaboration and content management use cases. As I mentioned with Box Governance, this product has been incredible up, as soon as you have a couple of lawyers within the organization and you need to be able to manage that data, you have a couple of lawyers within the organization and you need to be able to manage that data, we think governance is going to be highly applicable for the archival, for retention policies and we have some upcoming functionality coming out that we're really excited about as well that customers have been asking for. So, metadata base retention and then we're thinking about how do we bring machine learning and other intelligent features to let you do things like smart archiving in the future. So, box governing product strategy and something that I think Stephanie will also talk about is how do we make sure on the go to market side, we're able to build out and sell these new capabilities as seamless as possible. And we also want to make sure that we can help our customers do business in any region around the world. And this is obviously doing global business or has a customer base that is doing business globally. So that's our binding corporate rules and we're also preparing for GDPR certification. So all our customers will be protected in that environment by May of next year. We have HIPAA compliance for healthcare, FINRA for financial services, PCI for retail, FedRAMP for the federal government. We continue to ratchet up the level of FedRAMP support that we have. And then one that we're really excited about that has been driven by customer demand is GXP that we're working on in beta right now and will be introduced to customers in Q4. So we believe in fiscal Q4, we will be able to sell GXP to customers. So that's very exciting because right now we're in Pfizer and Amgen and Eli Lilly, AstraZeneca, many other life sciences leaders, but it's really been for the end user content, sales materials, collaboration data. We want to be able to help customers store more and more of their regulated content in the cloud and then integrate with the rest of the ecosystem. So you saw again on stage Medidata and Box together sharing that future story. So it's not about Box sort of controlling everything, but definitely handling the content management within the life sciences space. So this is just a snapshot of some of the compliance efforts that we've driven. There is not an a snapshot of some of the compliance efforts that we've driven. There is not an industry, there's not a market, there's not a geo that we're not thinking about, that we're not trying to pay attention to in terms of compliance efforts that we can help support. And then of course you need multi data residency to help customers. And this is a great example of architecture driving strategy and strategy driving architecture. We made a decision about 4 years ago, maybe 5 now, which said as we go international, as we go global more and more customers are going to need us to store their data in the region of their choice. We have one of 2 options. We either build out a lot of data centers ourselves or we work with the public cloud and key partners to help do that. And so we built a fabric that basically abstracts away the software that we build at Box from the hardware and from the infrastructure. And that to customers is called Box Zones. And what that is, is letting customers store their data in IBM Amazon Cloud and then as we announced a big partnership with Microsoft back in June and then we had Scott Guthrie on stage just yesterday talking about what this looks like. And so we can store data and we can house information in the aggregate of all of the locations where our public cloud partners are located. These are the regions that we customer demand is and that's what sort of drives our roadmap. So Box Zones is all about making sure that customers can store the data that they have in the location that they need. And one cool feature that's going to be rolling out next year is the ability to have multi zone support within a single enterprise instance. So if I'm a GE and I'm doing business in 30, 50 countries around the world, I'm going to want to have multiple zones within one enterprise as opposed to having to replicate enterprise instances to manage that. And then speaking of Microsoft and IBM and other partners, we obviously can't deliver our value if we don't have an incredible partner ecosystem. Neil is going to talk a little about what that looks like in the cloud era. What does architecting a platform driven company look like? These are some of the enterprise partners that we're really excited about. Again, we had Scott Guthrie on stage yesterday talking about really the future of the Box and Microsoft platform partnership. This is something that has been a complete change I think for both of our organizations. If you go back 4 or 5 years ago, we were mostly competitive with Microsoft. Then we started doing integrations with Office 365. Then we started going deeper with Windows. And now we're going to be going deep with Azure and give customers a choice of being able to have Box run with Azure, which is creating a co selling relationship and opportunity for both Box and Microsoft together. So we're really, really excited about that. So those are some of the enterprise updates. So we think about Box as serving 3 key audiences I mentioned in that earlier slide. We want to serve IT and we think about IT as security compliance really all of the enterprise oriented professionals in the organization. We want to serve end users and we want to serve developers. So these are a lot of enterprise innovation that we've been driven that we've been driving. But we're just getting started and at Boxworks, it's all about how do we continue to take our technology and evolve it so we can solve the future workflows, the future use cases that companies have around working with their information. And so I'd like to bring up Jeetu Patel, our Chief Product Officer to share a little bit about probably more tilted toward the end user as well as some of the workflow side and what customers are going to able to do with our platform. And this will encompass the 2 sets of announcements of today and yesterday that we made to the market. So really excited. Jeetu, come on up. Thanks, Aaron. And so for those of you who don't know, I've actually spent about 25 or so years in content management, so it's a long time. And I have to say that the next 5 years will look completely different from what the past 25 have looked because there's a confluence of different factors that are starting to come together that really help us get compound the value of information. So I'll walk you through some of the announcements we've made, some of the innovations we've had and it's super exciting to see how the possibilities are almost limitless. And the way that people are starting to think about us is much more as a platform where a lot of the ideations actually starting to originate from the customers. So if you saw today's keynote, all of those different variances of how people use the platform, those all originated from the customer and then we're just going out and making sure that those the initial spark and then it takes off in very, very creative directions. So what we've announced is a couple of different kind of big categories where there was meaningful amounts of innovation that was made. So on the work smarter side, which is how do we go out and help organizations just be a much more kind of efficient, effective, productive organization. We had 3 major kind of categories of announcements. 1 was kind of making collaboration much more productive in Box. And what we want to do over there was make Box a place where when people are going out and collaborating and using content that they don't have to keep leaving Box to do it. They can be in Box and actually have a very collaborative environment. So we had a bunch of announcements, some on the web application side. So this is where if you start seeing these might seem like we're kind of constant improvements, which is the goal where every single time a customer comes in the box, they're just starting to get delighted about the fact that there's constant improvements and they can do things in a much better way. We announced things like real time commenting, so now you can have threaded conversations and comments around a document. We also announced the capability that is going to be on visual version history. So you can go back and forth between different versions in a much more kind of seamless manner and kind of much, much more on that one dimension. We also have a very strategic product called Box Notes. And what Box Notes allows us to do is provide secure notes in real time that teams can go out and collaborate with. And it allows them to kind of fundamentally change kind of the culture of how meetings are run, how organizations collaborate with one another, how action items attract within the organization, so on and so forth. And so over here, we've actually made a tremendous amount of announcements around this whole notion of working in real time where there might be a group of people that are working in real time and kind of collaborating with one another. So capabilities like presence detection, so you know exactly who the other people are that are currently working on this node with you. You might also have like surfacing up whenever there is something that someone changed in a node, those nodes start to crop up in the beginning so that you actually have an easier way of navigating. And what these things do is they might seem like small changes, but they meaningfully change engagement dynamics within the product. And you actually start to see that more and more people have a viral effect in keeping on coming back into the product, which is a huge kind of advancement. And then the 3rd area that we saw, the huge amount of uptick from customers were asking us for is, you know, the sole notion of differences. But I have a note that's a pretty long note. In fact, some of our customers like GE and IBM are starting to use pretty heavy way internally within their organization. And what they were asking for is it's nice to see a note that sometimes there's someone who comes in and just changes a few things in the note. So what do we do and how do we know that do I have to keep rereading the note every single time, especially if it's real time. And so now what you have is this whole feature called differences, where you can actually see just the highlighted differences in a note rather than having to go out and see kind of read the entire note all over again. You can just pinpoint the differences where there were edits that were made and that makes it much more kind of productive to work with teams. So that was the first kind of area of innovation. The second big area that we've gone out and innovated in is this area around workflow. And I think this might be one of the first in the industry where 2 companies have collaborated and I just can't think of anyone in this particular market that's done this before. 2 companies with 2 separate engineering teams and product management and design teams have collaborated, come together, built a joint product and taken it to market. And it's actually fascinating to see how elegant the product is from a design perspective, but also has all the domain expertise that IBM had that actually got captured in there. And so Box Relay is the product we're talking about, which essentially the goal of this product was let's go out and take away routine mundane repeatable tasks that people do on a regular basis and make sure that you can take out the friction from those tasks. And so everything from legal contract approvals to HR onboarding to going out and doing kind of marketing content reviews, things that we do on a daily basis that we either have a very archaic process for or use email, things kind of constantly get to be pretty inefficient, how can you make sure that you can streamline those processes in a very lightweight tool rather than having very heavyweight tools. And so the way that we've actually seen workflow in the enterprise thus far is it tends to be pretty overly complicated. You need a PhD to go out and even create a workflow then let alone go out and execute it. And it's just overall pretty inefficient from a task management perspective and routine tasks don't really get eliminated. So what we've done with Relay is fundamentally kind of automated differentiators that you can start seeing that there's a white space in the market where there's no one going out and attacking those differentiators. 1 is the workflows that we build can be built by anyone in the organization, not just the administrators or the technical people that are building out the workflow. So anyone who you and I as working together, we want to go out and just make a process more automated, you can start building out a workflow. So that was the first kind of differentiator. The second one is, which is a huge differentiator for our company and I don't think it's very easy to replicate because of the level of kind of changes you'd have to make in your entire business model to have this is the notion of including the extended enterprise. Because the extended enterprise is not just about a few capabilities that you can go out and have for sharing content with someone on the outside of the enterprise. It fundamentally requires a different business model. You have to think about your commercial terms differently, you have to think about your pricing differently, you have to think about how you engage customers and deploy customers to a very large scale in a very different manner. And what we've done is we've taken that benefit that you get with Box on being an extended enterprise and moved it over also to the workflow side. And then the 3rd area that's super kind of valuable is all the security compliance benefits, all the content that's in Box. You now actually have this capability for workflow that's built on Box itself. And in our thinking about what thinking about what the traction is we've gotten, we've got about 250 customers in beta. So this was one of those products where we wanted to be very deliberate because we were kind of charting new territory here. We're working with a partner and making sure that we're building a product with the partner. And we wanted to make sure that we actually baked it enough so that there was no surprises or kind of minimize the amount of surprises as you take the product and bring it to market. And I have to say remarkable feedback we've gotten back from our customer base as they're start to use these products. So 250 customers in beta, great input that they've given us over the course of the past year. And delighted to say that it's slated to be available November 13. So we'll actually have workflow that's going to be available in the market for lightweight repeatable tasks that can be done in a pretty structured way. And if you saw the keynote yesterday, you would have seen Jennica show kind of a spectrum of different kind of use cases from 2 step processes all the way to kind of some pretty complicated and sophisticated processes that were all being addressed with Box Relay. So that's the second set of innovations that we made was around workflow. So make sure that the workspace for collaboration and how people work inbox gets more and more kind of immersive in experience, make sure that you can go out and work with people and have the fluidity in the way the work gets done. And then the third area is where I feel that there's going to be a tremendous amount of innovation in the market. And I think we are charting the way over there. And this is probably one of the most gratifying areas of feedback I've gotten in the past couple of days over here as well because all of a sudden what this announcement on the intelligence side has done is the light bulb has gone off and people saying, oh, this now makes a lot of sense, a lot of sense, not just from a defensive perspective to put my content in box, but now from an offensive perspective. If I want to go out and do something completely different in my content, my first step is I have to move the content of the cloud and into Box. And once I do that, I'm going to start creating value at a very different pace than what I could do otherwise. So over here, what we've seen is there's a the core problem that we're trying to solve over here is that the volume of content is actually increasing. And as the volume of content in fact, we are actually fortunate in the sense that more and more people are putting more content in the box and now we are starting to see that our volume kind of double every year. But as that kind of volume increases, traditionally in most systems what ends up happening is the more information you have, the harder it gets to go out and do things with the information. And so what we have seen as complaints sometimes is that you might see in the industry is a marketing professional might say, I don't really know how to go out and find the professional might say, I don't really know how to go out and find the exact image that I want to use for a campaign from the 10,000 images that I have or a legal department might actually have very expensive lawyers and paralegals updating metadata manually or you might have someone in the customer service call center area that really has to go out and listen to a lot of recordings to really assess how they're going out and serving their customers. There's a fair amount of area that we saw as a huge opportunity for us to go out and add value. And so we feel like machine learning is what's going to go out and completely change this at scale because what ends up happening if you have a few pieces of content and you want to go out and extract value, it's pretty easy to do by manually entering metadata and enriching the content, so you have more context around the content. And so for that, you can build a good metadata system and you're in good shape. But the challenge happens is when you actually start working at scale, when you've got billions of files and hundreds of thousands of users and there's petabytes and petabytes of data, you start finding this to be a very difficult problem to solve. And you can't really solve it with just having people manually on data entry floors. You just so what's ended up happening in this industry, in the content management industry with my previous employers is you tend to have very spotty kind of treatment of intelligence and metadata that's been put in the files. And what we actually seen is there's so much innovation that's happened over the past couple of years, specifically in the area of machine learning, where some of the kind of capabilities of machine learning have matured to a point where you might be able to actually use these in some very creative ways. So for example, automatically translating a document from one language to the other or automatically detecting objects within an image or making sure that you can transcribe a document from voice to text. Those areas have actually started exceeding the human thresholds of accuracy. And so what you're starting to see is you've got a ton of you've got 1,000,000,000 of dollars being invested in these AI algorithms. And those algorithms now are starting to get more and more sophisticated, where the accuracy is getting greater. But the challenge has been that as all of this innovation has happened, there's no easy way to bring that back to your content. So there's innovations happening in the content repository. And imagine if you had to go out and say I'm going to bring the artificial intelligence you. You might have to go out and do a security review on those AI algorithms. You might need to then make sure that you figure out whether there's interoperability between that AI algorithm and your system and how is that going to work. So there's a fair amount of algorithm and your system and how is that going to work. So there's a fair amount of complexity that most large organizations aren't able to take on. And so what ends happening is you just have this very unproductive strategic asset within your organization, which is content that doesn't get used. And so what we've tried to do over here is and I think it would be very hard for a company to do this unless they were very kind of ecosystem centric. And because we've had such a partnership, now what we can start to see is there's a big change and a big shift in how you can go out and add value to content. So we introduced, as many of you might have seen in the past couple of keynotes, this whole kind of concept of box skills, where you could take machine learning and intelligence from kind of the different providers in the market and build skills that can then be applied to your content. You're bringing intelligence to your content to make sure that your content gets more and more kind of potent and you can extract more and more value from it. So the way that we've actually thought about this is you want to make sure that the velocity of innovation that's happening in the area of machine learning in general, which is probably an area that there's more investment dollars being put than any other kind of sector in tech. Can we use that a tailwind for us, right? So all different technologies that you see from Azure to IBM Watson to Google that are doing some pretty sophisticated stuff. I can go out and detect a sentiment based on tone of voice or what they've said. I can go out and make sure that I identify what an image is and how you want to classify the image. All of those kind of algorithms, we've taken those and we've bridged the gap between that and how that can be applied to content by building this thing called the skills framework. So the skills framework allows us to take those machine learning algorithms and apply it to the content in Box where the goal over here is that every content was outside of Box. And what that does is, creates a content was outside of box. And what that does is, creates an incentive for us to go out and continue to create more value, but creates an incentive for customers to say, let me put more content in Docs because more I put my content in Docs, more value I can extract from it. And so what we wanted to do was identify a few ways that we can have people start imagining what they can do with their content. And so we are providing 3 skills as part of this announcement, which are the entire experience. So for those of you that have missed the keynote, what we show over here is kind of a remarkable thing where there's a marketing department, let's say, that's got tens of thousands of images of marketing assets for digital asset management use case of some sort. And what of marketing assets for digital asset management use case of some sort. And what you'll be able to do is on the left hand side, what you see is that's not someone who's manually tagged all of that data and said this is about tennis and it's about shoes and it does have New Balance shoes in the image. What we've done is we've identified specific objects in the image and the context of that image through a machine learning algorithm and that got automatically tagged. And then what we also did over here in this particular example is took the text that was in the image and extracted the text and also populated the metadata. So what you're starting to see over here is that your metadata is automatically at scale going to get populated through these machine learning algorithms. And now the possibilities to be limitless because you could literally go out and say show me all images in my marketing repository, which have a green background that are talking about tennis, the sport, which have a New Balance kind of shoe that's actually placed over there, pull all those up and from the 10,000, I might have 35 of them that I can pick from and then go out and run a campaign against it. So it fundamentally changes how you can go out and surface up content in very different ways. And we started with our content our content repository where image, audio and video is constituting a large percentage of growth. And then the second area is there's a huge amount of kind of progress that's made with these machine learning algorithms and the accuracy levels for these particular type of domains. So the second example is video, where this is one of my favorite examples and how people will fundamentally change the way they interact with certain types of content, because you've taken a very linear motion of how you would consume content, which is the way that people can consume video today as you start at the beginning and then you watch the video all the way to the end. And if you're impatient like me, you might actually like me, you might actually randomly fast forward. But what you don't see is things where it's done in a very intelligent way. So what we've done over here is we've identified the tags for the video and these might be tags like there's a student or there's someone who's there's all the tags about the topics of the video will be identified. We then have algorithms that are going out and doing facial recognition frame by frame on every video, right? So you can identify which people appeared in what frames of the video. And these are interactive. So you can then go out and click on something and say, I want to see John in this video and I can just click on the area where John is going to appear and you'll actually be able to see John in the video. And then down at the bottom, you see a transcript that's automatically done. None of this was manually done. That's the magic in this thing is it's all automatically being processed through these AI algorithms. And what you've done is you've taken something that was extremely complex and made sure that you've made it a very intelligent document where it's no longer a black box, but it's become this intelligent piece of content that you can consume. And so our examples to start with, but most of the innovation is going to happen with custom skills, where we want to go out and provide to our customers an ability to build new skills that they might think about that they want to apply to their content. And so what we wanted to do was provide them with an SDK and we call that the Skill Skip. So you can take Skill Skip and build out your own custom skills from any ML provider. So the goal over here is whoever you think is a great ML provider that might be able to apply value to your content, you can take that ML provider, you can go out and use our skills kit and then start applying that capability to your content, You take out all the friction from there. So this is an example where we took an audio file and chained a bunch of skills together. So you might say, I want to go out and use Microsoft for the transcription of the audio to text, but I'm going to use IBM for the sentiment analysis and I'm going to use Google for the translation. And you could literally chain 3 skills together and make sure that's possibilities truly get limitless, but if you start thinking about what this would hold in the future with as natural language processing gets more effective is that the way that we interact with content will start to get very, very different, right. And so in this particular use case, what happened was a call center customer service rep rather than just listening to a recording of one of their employees and how the call might have gone. You can listen to all of the calls that are there from a machine and you can figure out like at what points in time did a customer service or support rep say certain things that created different sentiments for our users. So it might be that these points in time when you said this, the customers got happy in general or when you said this, the customer was frustrated. And you can then use that for also training your entire kind of teams. And these are all kind of things that you can do in a custom way. So one last one that we've actually gotten a lot of kind of interest from the market is this whole notion of as we display CCM systems, how do you go out and make sure that text and OCR recognition happens in a proper way so that you can kind of classify content that's text documents. And so this was an example of a partner, Effesoft, that built a skill where you could literally take a mutual NDA document. And this NDA document has been tagged as a mutual kind of mutual nondisclosure document by the skill. But what you also have is it detected that there was a wet signature at the bottom of the document. And based on that, it actually flipped the flag to say that this contract is now executed because there's a wet signature in the document. So your content just becomes more and more intelligent as you go. And then it's also extracted who signed the content and what the address of the actual piece was. So this literally if you would have thought about this before the cloud, you just wouldn't be able to bring all these technologies together. And the pace at which we can go out and build these skills is actually very scalable because you'll have all these different algorithms that are continuing to evolve, but the algorithms only as good as the data set that they can be applied to. We've got one of the world's largest kind of private data sets that our customers own that we want to make sure that we keep applying to it. So and then our one of the things that's pretty important is the guiding principles that we use for skills. So the way that we think about this is, there's a lot of concern around how can machine learning be applied where it doesn't go out and hamper my privacy or security. So I feel like with the Box brand of being very secure, very compliant, we can actually have a level of rest that a level of assurance that our customers have feeling that they can actually they don't have to worry about their data being misused. So one of the key guiding principles that we make very public is that any skill that you build or that we've built in the product is going to have an explicit opt in kind of component to it. So the customer has to explicitly opt in saying for this set of content, I want to apply this skill. It won't be turned on by default. We will make sure that the customer explicitly opts into it for maintaining their privacy and security. We also want to make sure that all the benefits of security and compliance that you have in our content are automatically just because it is in the box repository and you're bringing the intelligence automatically just because it is in the box repository and you're bringing the intelligence to the content, it becomes super valuable to kind of gets built out where you have more and more skills and people will want to make sure that there is a place gets built out where you have more and more skills and people will want to make sure that there is a place that you can go to for the skills. So the level of friction gets taken away from the market. So that was on the skills way. How do you go out and get the most amount of value from the files? That was one part of our intelligence launches that we did. The second area that we're actually innovating a fair amount on is this whole notion of how can you also get more insights of what's happening around the file. And for that we made we've actually got this set of relationships that can be leveraged where we actually have a lot of data around relationships, the relationship between 2 pieces of content, a relationship between a content and a person or a person and person. There's a fair amount of relationships that are there within Box. And what we've done is we've actually created the ability to say how do those relationships get interpreted and what the how are the interactions going to get continuously updated within our system. So we want to continually make sure that we are enhancing and using inputs from the outside to enhance these interactions that either content and people are having with one another. So for example, you could even go out and say, I had an input of a document, I had a document that was uploaded to Box from Slack or I had a document that got edited in Office 365 and those become inputs into this kind of what we've also built is this kind of we've developed a scorekeeper service, what we've also built is this kind of we've developed a scorekeeper service that then also does our has our own machine learning algorithm that says what's the weighting that you place on different relationships based on the way that the work gets done. And that entire technology is what we call Box Graph. And what you'll have is this whole notion of Box Graph will start powering a bunch of experiences in different domains for our customers. So one of the things that we launched yesterday was this whole notion of in productivity, what can we do with it? And the way that people have historically worked with content is you either browse through content or then you search for content or you might actually but then that's where you kind of stop. That's when you got to a certain level where you couldn't browse through content, you searched for content. Wouldn't it be nice if you could actually recommend content based on certain kind of preferences or contextualization or kind of predictive behavior that you can go out and assess. And so that's an area where we announced a product called Box Feed, where you'll be able to use the graph and power experiences for saying, oh, I just had a customer meeting and chances are that Aaron is probably interested in the notes from the customer meeting. So automatically, the graph knows that Aaron and I work closely together, so that customer meeting notes will actually just surface up in Aaron's speed. Or we might have something like I've actually been at mentioned in a document, Wouldn't it be nice if I that document when someone else updates it that also starts surfacing up in my feed. So I know this was something that I had edited or I had commented on, but it's been 7 days and now someone else edited it. So let me just have that show up in my feed. So the system just gets more and more intelligent. And we see that this kind of possibility is not just feed as the first application. So we announced feed we'll actually be launching it next year, but there will also be a bunch of other applications in areas of security, for example, where detecting anomalies for anomaly detection use cases or threat prevention would be a great area where this graph could be utilized. In fact, we had Palo Alto Networks today in my keynote earlier that's talking about building a skill for going out and making sure that that can be applied to content. Workflow, how do you automatically kind of surface up some tasks. And then lastly, insights from administrators, so that administrators know the pattern of the way that work happens internally and what value they're extracting from the system. Because one of the things we want to do with administrators is equip them with enough data to make them our champions so that they can continue to keep justifying Box for their senior management as they go forward. Now you've got this way to go out and surface those insights to them as well. So super exciting on all kind of different dimensions. And all of these kind of the beauty about this is all of these innovations are on our platform. So the moment you actually use our platform in any different area and put content into the system, you automatically are a beneficiary now that you can go out and leverage all of these other capabilities because you've put content through any of channels into the platform. And the way that we've built out our platform is we've got some a core set of content services and then a core set of enterprise services, so that every single time people think about going out and using content, they don't have to rebuild their platform. They can rely on the fact that we've already figured out how encryption works, we've already figured out how permissioning works, so how collaboration works. And that will be something that they can just rely on us and then focus on what they do best and then rely on us for the infrastructure for content and the APIs APIs in our platform are being used by our customers. Because when we started thinking about this, we had a few ways that we thought the APIs would get used, but we've been pleasantly surprised with the breadth of ways that APIs are being used by our customers. And what we showed in today's keynote for those of you that made it is in every single one of these different ways that APIs got used, we actually had someone that came up and talked about it. And there were customers like Walmart and Standard and Poor's and all of those that came up. So there are different ways that the APIs are being used. 1 is through our first party apps. 2nd is by 3rd party app integrations. We've got 1,000 of integrations now where the point over there is regardless of the application you're working in, you should be able to work with content in Box. The third area is security services integrations, where Palo Alto Networks is up there. Facebook was there showing the 3rd party app integration with Workplace. We've also got this automated of automations and scripting for an administrator. So we had Indiana University come up over there and talk about how they've got 115,000 users that are using our APIs and automating the de provisioning because in the education sector, you actually see lot of students leave the university when they graduate, new ones come on. So they have to automate all of the provisioning and de provisioning. Back office line of business systems integrations and retiring certain systems and moving them over. S and P Global came up on stage and talked how they retired Documentum, Simplicity, Microsoft OneDrive and moved all of the data to Box. They had over a 6000% increase in the content that's happened in Box and they've actually got over 11 point terabytes of content and so now that's in box. And now what they're really excited about is how can we leverage this with all the machine learning capability to extract even more value. Walmart came, they showed an example of an application for learning management system, Learning Academy that they have with quarter of a 1000000 users. And it was actually great. I didn't even know she was going to say that, but they were thinking of continuing to expand the footprint over there. So they're and what for serving up content actually powered by Box. And so 250,000 users over there. And then external apps where you start seeing a bunch of financial services companies, bunch of healthcare companies and across a multitude of industries that are going through a digital transformation. We had one of our largest kind of commercial deals with Freedom Financial that came up on stage and their CEO was up on stage and talked about what they're planning on doing with Box. And then lastly, just machine learning kind of services with the skills framework. So this is kind of this range or spectrum of ways that people are using our platform and what happens is from any of these ways that you use the platform, you put content into the system, it goes in the same place where policies are managed in a singular kind of manner and in a consistent manner, so that regardless of what you where you put the content in from, you now have this kind of very rich single place where your content is kept and then it integrates with everything that you might want to work with. So with that, use cases that you're starting to see where whether from it'd be from RIP and replacing ECM systems like what Standard and Poor's talked about to competitive wins against ECM. We had Metropolitan Police where we actually they were using SharePoint and now they're going to be using us, storage replacement where they actually retire storage. And then lastly, expansion from EFSS to multiple different workloads. You're starting to see a huge amount of momentum. So we think this is about a $45,000,000,000 market and we'd like to make sure that we take our fair share in the market. And the nice part about it is there's been so much friction in this $45,000,000,000 in the way that it's been served that we feel like there's someone probably one thing I'll end with is the uniqueness with of the level of desire that customers have in us succeeding. I've never seen at any other company in the past. They just want us to succeed because they've been so fatigued with how poor the innovation velocity has been in the past. So hopefully that gives you a little bit of an velocity has been in the past. So hopefully that gives you a little bit of an idea on the product side. And then with that, I'll actually have Neil talk a little bit more about the partner side of the house and the ecosystem, which central to our success as we move forward. So hopefully that was valuable. Great. Thank you. Thank you. Thank you. Thank you, John. All of our ecosystem. We've been doing a lot of interesting things. You might have seen some announcements with some of the big players, Microsoft, Google, Amazon. And I wanted to just zoom back for a second and give you some context on why this is happening right now and why it's good for us, good for our customers and also just to give you a brief update on how those are going. So again, this is nothing that you don't already know. But if you think about the first wave of movement to the cloud, it's a lot of it is about refactoring. It's moving licenses. It's like Office 3 65 replacing Office on prem. It's the Oracle ERP stack or Fin apps moving into the managed hosted environment that is in the Oracle Cloud. And that's really where the most of the spend today is and most of the initial wave of movement into the cloud is going. But it's not really true SaaS, it's not leveraging the full power of what you can do with the cloud model. So right now, we're seeing an interesting trend where customers traditionally would go into the vertically integrated stacks. But now they're like, okay, there's single purpose SaaS applications that get the job done like Workday and HCM, Box and Cloud Content Management. And HCM, Box and Cloud Content Management. And so this is like the current state. So a lot of these applications are moving into these single purpose SaaS applications. It's a big market. It's a $1,000,000,000,000 market. We all know it. It's growing very, very fast. But what's interesting is Box is in a very unique position right now. On the right hand side, you can see the top 5 deployed and used SaaS applications in the interesting is of the 4 others, they don't particularly like each other, right? They when it comes to sharing ML services, for instance, a lot of these companies view what they're doing as very, very specific to their own workloads. And what we're actually focused on is we're agnostic to all of these. So we have partnered with all of these companies and many others on this list where we can actually bring the capabilities of the ML services or the advanced analytics services of some of these other companies into our system in a way that some of these others cannot. And so we're in the unique position because we've large amounts of very, very valuable data. Interesting thing So we can see the intersection as Jeetu talked about between people and the workflows and what the transformation is going on with different data sets. I'd like to just give you a I was at EIC last night with 1 of the top 3 oil and gas exploration companies in the world. And they're a deep in fact, they're one of the top Microsoft customers globally. And traditionally, it's the conversations have been, hey, how are you going to take cost out because we got OneDrive or we got SharePoint. So why would we use Box? And what was interesting was they said, well, one of our biggest pain points is that we have decades of research and to replace cost, we put it into SharePoint. But the problem is that the researchers can't get access to that or they want to be able to use the ML services that actually might not come for the Microsoft stack against that research so they can innovate faster. And so there is like we're seeing time and time again these customers who may have invested in other technologies, but they're like, okay, now I can see the productivity improvements that I get, so you completely change the dialogue that you have. And we're just seeing that beginning with some of the announcements with skills. So what's fascinating though is all of these big companies, they understand that. And so this is interesting arms race going on where they not only want to power the storage layer, the compute layer, the network architectures, but they also want to use their advanced services on top of these single purpose SaaS applications. And again, because of Box's scale now, we are deeply relevant in a way that we were not before. So we've decided to push as much of our infrastructure as we can into the public cloud. And that's actually there are other companies in our business who actually gone in the opposite direction and time will tell to see what happens. But from a it's a win win win for all of us from a customer from these companies and certainly for Box. So from a customer perspective, because we can leverage the innovation that is going on by these other companies, we can accelerate our how we can transform our customers' journey into digital. We have the flexibility to deploy our mix and match the best of breed SaaS or ML and AI capabilities in a way that many of these other companies cannot do. I can't like emphasize enough how difficult it is for a customer themselves who actually go and to set up the technology to develop relationships, the partnerships to consume the different ML services from each of these intelligence, but to drive outcomes because intelligence is irrelevant. Get the intelligence, but to drive outcomes because intelligence is irrelevant if metadata is just sitting in a system that has not been used. So if we saw what we did with workflow, this enables us to drive actions based upon the intelligence within a data set. So it's also by working in public cloud, we've been able to accelerate our international expansion and growth because now we can actually leverage the capabilities of the different players for different regulated industries or specific countries in ways that we have not been able to do before. So working with all 4, we now have the ability to just very quickly move into a new market or even have like different zones within country in a faster way. And finally, our performance is getting way better because we're just riding the wave of the infrastructure investments that these other companies are making. So I think about this, I run BD here, so I think about what is the benefit for the companies themselves. And it's actually, there's some interesting going on. First of all, it's super important for these companies to actually be serving multi services for on prem into single tenant for their customers in managed service environments. And when it comes to actually serving 100 of 1000 of customers at scale and entrusting their data, there's a whole bunch of innovation that is going on behind the scenes, not just on the technology, but even just the regulations, the legal contracts, the way you structure these things. And so we're just helping some of these companies really harden their ability to serve to sell the differentiated and advanced offerings so of these companies. So they're building like Google, Microsoft, Amazon, they're building these incredibly sophisticated algorithms. However, it's to actually figure out how best to get this into hands of customers who drive some transformation. And that's actually working with us to ease of use and the core tenants of what Box does. We're actually helping them accelerate that. And of course, for us, I mean, we have seen deepening relationship with all these companies. So what we get out of this is that we can tap into the go to market reach of these companies as they're serving and I'll share some examples of this in a moment. But these companies have got deep decades long relationships, some of them cool we're the new, we're the innovative, we're actually helping these companies provide some value to these and that, of course, is beneficial for us. We also are able to, I talked about this, rapidly differentiate box services because we're able to mix and match best of breed technologies over the top from these other companies. And of course, it gives us greater economies of scale and efficiency. When you're receiving infrastructure from multiple players, you can negotiate better rates. We've certainly seen some improvements and Dylan will talk about that when we get into the financial section. So how is it going? I'll just share a couple of perspectives. I'll talk about IBM and Microsoft. So we see these strategic alliances in 2 categories. One of them is go to market reach and the other is joint innovation. And so IBM, we've been doing this for slightly over 2 years. They're jointly selling, they're reselling Box to their customers around the world. So that means that there's thousands of sales reps who are heavily incented for Box's success with their clients. And that's actually just an amazing position over $ over $100,000 and we're just at the beginning of this. It's a long term relationship. But we didn't do this just for go to market reach. IBM, for instance, are the leader in traditional on prem ECM with the FIMAT business. And they have just deep decades long capabilities and customer relationships. So Box Relay, we talked about earlier, is a joint a joint development between both companies where we're bringing the capabilities and the depth of knowledge of the workflow legacy of IBM with the design and the ease of use characteristics of what you would expect from a company like Box. And so we're GA ing next month and we're seeing a lot of interest from all over the world from every customers in every industry on this and this is going to be really interesting, especially when you're marrying it to the intelligence box in skills. So we also now skills. So we also announced that we're using Watson as one of the core tenants of what is behind box skills. And of course, we've been very busy over the last year and you'll see a lot more happening to turn up new zones in lots of different markets. But one of the real benefits of this is that we've been able to sell into Europe, for instance, or in the UK of like working on top of IBM Cloud. Microsoft has been more recent. Aaron mentioned this earlier. This summer, we dramatically improved the relationship that we have. So now that so we have joined selling motions with Microsoft. A Microsoft sales rep will get paid when Box is deployed to their customer. I mean, just think about that for a second. And this is credit to Microsoft. We're actually getting that to it's very important for them to power a company like Box and with Azure underneath and all of these advanced Cortana services on top. So even though we will continue to have some overlap on OneDrive, SharePoint, in totality, we have a very deep and building and improving go to market relationship and product relationship with Microsoft. And we're just seeing the beginning of the pipeline. In fact, we just turned up this week some of these systems to actually enable the lead sharing, which it will be fine and see how that goes. And on the innovation side, I mean, this is something we've been working on for years with Office 365, recently with Microsoft Teams, with Flow, Outlook, SharePoint, Azure. There's a lot of integration and you'll see a lot more of that. And then we also announced with Microsoft Skills. So that's going to enable us to bring some of the Azure ML Services into box content. And finally, zones, I mean, Microsoft actually are one of the more robust public cloud infrastructure players with breadth of reach around the world because they're serving the hybrid use cases of a lot of customers. But because of that, they have got a very sophisticated set of compliance standards. In fact, they would argue it's the best in the world and we're actually very encouraged with what they're doing there. With Google and Amazon, we're also doing a lot of deeper integrations. Last year, we announced and we're actually now seeing in beta and we're working with customers to actually put Box in underneath Google Apps or G Suite, which is something that a lot of our customers are asking. They want to have the ability to have flexibility to use Box, whether they're using the full Google shop or maybe they're a mixture of different productivity tools. And that's actually progressing quite well. We also announced and we're now in beta with ML side. And last but not least, Amazon. I mean, we've been working with Amazon for over a decade and we've done a lot of joint innovation. We've scaled with Amazon and we continue to work deeply with them. But we partnered deeply to do Keysafe, which is one of the first innovations of its kind in the industry. We're deploying multiple zones. And we would amplify our differentiation and to accelerate growth. So with that, I'm going to hand it back to Steph, who's going to talk about how the partner ecosystem is integral to our overall go to market motions. Thank you. Good afternoon, everyone. Lovely to be here. I'm going to put my glasses on so I don't get blind. Lovely to see everyone. It's great to have an opportunity to spend a little bit time giving you an overview of what we're doing from a go to market perspective. So let me jump in and tell you a little bit about myself. I'm sure you've all seen the is etcetera, but I thought I'd just share with you a few key points. I've spent my entire life living and breathing information technology. I'm an IT girl at heart, and I've been fortunate enough to work with some of the world's leading players, in what I would call pretty classic go to market functions. So I've led everything from sales and marketing to operations to product teams, a really nice span of go to market operations, business. So a really nice span of go to market operations. With all companies of all sizes and shapes and across all industries, I've led a couple of industry teams over the years, spent a lot of time working in state and federal government, both in Asia Pac and across the globe and have held a number of global positions as well. And with that comes, I think, 25 years of a lot of experience in terms of dollars So the gamut, I call it. And I see this tremendous opportunity here at Box. And I look forward to sharing with you a few of the highlights over, I guess, the last 60 days. So it's just over 2 months now of being here and I've had an opportunity to hit the road, meet a lot of our customers, our partners, spend time with our teams both here domestically and internationally. And for me, three things really stood out. 1st and of deep domain expertise across all of the functions, which I think has allowed us to build this incredible culture, very passionate, everyone's clear on their North Star and the vision. And it's really put an incredible business foundation in place. I walked in the front door and I was very clear to both Aaron and Dylan, we have the foundation and the building blocks to do well and truly beyond $1,000,000,000 This is an incredible opportunity for us. And we have 76,000 customers which most people I think would kill for. We have many more who are keen to become our customers, and I've been meeting with them throughout this week here at Boxworks. And they recognize that there's something very unique. You heard from G2. You probably heard it a little bit over the last couple of days as well. There's something about this technology and innovation that is very, very unique. And that's why they're coming to VOX. And so with a 40 $5,000,000,000 addressable market, there is a tonne of opportunity for us to continue to grow, to grow our current installed base and to continue to drive the acquisition of new customers across the globe. And so with that, I really want to share a little bit about our go to market strategy. I'll tell you a couple of interesting anecdotal stories. I spent the last 48 hours probably meeting with about 80 C suite executives from different industries, from federal government. And it was really clear, we were reminiscing for those of us who are old enough, we've been chasm. And so now they're but there is no doubt that everyone has crossed that chasm. And so now they're trying to figure out what does that mean for my organization, for my people, for the extended enterprise, my customers, my suppliers. And they're anchoring themselves on a couple of really important things. The most important thing that comes out in every conversation I've had over the last 2 months is security and compliance. It is critical to every part of their organization. And in light of what's happening right now with the numerous breaches we've seen over the last couple of years across all industries, it's really top of mind. And so when they do the assessments and the analysis internally, when they look at external consultants to do this for them, we are unmatched in this area. And we'll talk a little bit more about that later. And so they anchor themselves on security and compliance. And then they say, Steph, what we're trying to do is figure out what do we do with all this rich data and content. And so they're trying to find ways to improve their collaboration within their organizations, externally. They're trying to look at their business processes, rethink the way they go externally. They're trying to look at their business processes, rethink the way they go to market. And they don't want to continue to add to the architectural technology that they want to continue to add to the architectural blueprint? And the answer is box. And I truly believe that as well. And I've been hearing it over and over again. And so what does that mean for us here at Box? So I thought about it and there are 2 really clear guiding principles. The first one is we're going to drive top line growth to $1,000,000,000 and beyond and we're going to do it as fast as we possibly can. And Aaron keeps reminding me that that's job. The second one is we're going to do this. We're going to scale the business efficiently. I said earlier, we've got this incredible foundation and building blocks, but the wiring needs a little bit of work to be quite candid with you and that's what we're going to focus on. We've got to weave this through the DNA of not just our organization, but our partners and our customers. And we've got a plan in terms of how we're going to do that. And so I think about 4 really clear business outcomes that are going to drive that growth and efficiency. The first way we're going to do this is we're going to 2x and 3x our annual contract value. And with the breadth of portfolio that we have in terms of the products, and you just heard of all the incredible innovation that's coming and we'll get a little bit further insight with crystal ball this afternoon of what's out there as well as platform, the customers are just trying to understand how can we leverage this altogether and really make an impact in transforming our businesses sort of on this digital journey. So we're going to focus on that. The next thing we're going to do is we're going to continue to drive usage and adoption of the technology. And so we're spending a lot of time inside our customers and you'll hear a little bit about what we're doing with Box Consulting and Services. But we're helping them really get the most out of this technology. There were 4 or 5 great customer case studies on stage this morning with G2 across all industries, financial services, retail, life sciences, government. It's never ending. And so we're going to continue to help our customers get the greatest value they possibly can out of the technology. We're going to acquire new logos. We have over 7,000 people here this week. Many of them are prospects who have heard about us, who are thinking about how do we bring all these pieces together, particularly in light of the ecosystem that we're working within. Our partners are their partners. And so starting to make a lot more sense for them in terms of understanding how they really can take advantage of this cloud content management platform. And then finally, we're going to do all this by keeping our costs down. And so I try to think our best to describe this to you in about 15 minutes. And so I thought I would group these into what I would call pretty logical buckets. And so I'm going to quickly touch on 4 of them and go a little deeper on the others. So me start. So solution selling through Cloud Content Management Product Suites. What we found is we've got this great foundation of thousands and thousands of customers who are using it for what I would consider to be really basic things. So important, but fairly and rudimentary in terms of what we're trying to help them do with transforming their businesses. So we're helping them understand how governance and key service and zones where they need data residency in their multinational operations become really important pieces of their architectural blueprint. And so we've been working with our teams and our partners in really elevating these conversations and getting in there. And you can see by the types of attendees we have this week, we have line of business leaders, we have CISOs, we have CIOs. We have heads of digital transformation. So this is really this is the business that is talking about what's required. And so we are going to continue to have that dialogue. As I mentioned, Box Consulting, we are continuing to invest in this. Our customers are looking for trusted advisers to help them kind of navigate these waters to be quite candid with you. We are one of multiple partners within the infrastructure environments. And one of the things they're asking us to do to really give them the knowledge and the support that they need to actually integrate everything in a very seamless fashion to improve their own user experience as well as the experience of their extended enterprises. ELAs, we're going to continue to do more enterprise license agreements and multiyear contracts and we're seeing this is what our customers are looking for, this commitment to Box moving forward. I'll talk about the new use cases in a moment. I'll just drop down to self-service performance. Our online business continues to be a really important part of our organization. We want customers to be able to use any route to market that they feel makes the most sense for their business. And so we're making the investments there to ensure that they have access to whatever they require in a self-service manner. Our community sites provide tons and tons of support for them as well. And so that's a a part of the business that you'll hear a little bit more about. And then the last 2, I'll go into a little bit more detail. So let me just move right ahead. Okay. So the first one is new use cases. What's really fascinating is when you speak to our customers, they're really all shapes and sizes. They're from every part of the globe and they're from an NGO all the way to heavily regulated industries like financial services and life sciences. And the beauty of Box is that we really address everyone's needs. And one of the nice things that we're able to do is use that horizontal platform essentially as a springboard. And so what we've decided to do is to continue to focus on the industry verticals in a little more sort of a discrete fashion financial services, government and life sciences. Again, if we remember that we anchor ourselves on security, we have FINRA, we have FedRAMP, level 2, Level 4. We have HIPAA. GXP is about to become really available. And you heard Medidata up on stage today as to how important this is in terms of clinical research and what's going on. And so we are looking at ways in which we can help them reinvent their businesses. And so financial services, we're working I met with 2 clients yesterday who were talking about how do they reduce what is currently a 17 step process for someone to get approval on a loan. And so we're spending time with them rethinking those processes and how they box as they work with 3 or 4 other strategic partners to really help them improve that workflow. With government, I think you heard earlier from G2 and there was a lot of press recently about the work that we're doing with Metropolitan Police of London. And that's really a really fascinating use case, digital policing. They were literally spending thousands of men, tens of thousands of man hours driving across London, collecting data on thumb drives. It's crazy. And so we are helping them rethink digital policing and safety and being able to solve for crime much faster. And that's another example where we feel that we've got this unique opportunity to go deeper in some of these verticals that just make sense and play to our sweet spot. The next area is international. I've had an opportunity to visit with half of our international teams thus far. Our EMEA operation continues to go from strength to strength. We recently made further investments in Germany. We hired an incredible SaaS leader on the ground there. He has a great team and we're already getting traction by working with some of our strategic partners like IBM and really having that opportunity to continue to expand the footprint outside of the U. K. Where David, Benjamin and the team continue to do some pretty incredible work is really great news for us and we're going to double down on that this year. Our Japanese business, KAP SUN, does a phenomenal job. It is an entirely nearly indirect business. The Japanese channel strategy is one of the most effective I've ever seen and something that I've been very familiar with over the last 25 years and we'll continue to drive that business. And then we've got our regional operations in both Canada and Australia. And we've chosen to work really closely with some of the strategic partners we have on the ground, IBM, the telcos, Telstra in Australia, Microsoft. And again, this is an opportunity for us to continue to expand our footprint and really enable the domestic clients that have multinational operations to really get the benefit of Box across the globe. Strategic partners. Neil touched on this a little bit, but I just want to give you a little more depth around how we think about partnerships. We were presenting to 400 partners yesterday afternoon and we made it very clear to them that our success is predicated on theirs and vice versa. We cannot get to $1,000,000,000 as fast as we want to even if we attempted to try and hire as many sellers as you could possibly get your hands on. It doesn't work that way. I've been in this business for a really long time. You've got to go wide. So it's about reach, it's about depth and it's about differentiation. So for us, working with strategic partners across the globe allows us to get into new geographies, new markets, new industries and we can do this at scale. So some examples of who we're working with, we have these tremendous relationships with service providers like AT and T and Telstra who essentially cover all aspects and realms of the marketplace and we are able to leverage their tens of sellers in front of the customer and think about how we integrate Box as part of their solutions. The same with our resellers. We have over 1,000 resellers across the world that we're working with again to enable us to get that reach that we're looking for in a fairly accelerated manner. If you think about depth, when I think about this, this is really the integration piece. And if this doesn't sound as compelling as it should be, Box won't exist without the integration piece. For us, one of the reasons why I believe our customers think it is so compelling is they've made investments in technology. They have legacy systems. They're continuing to make investments in new technology. They're continuing to make investments in new new technologies. They want to consolidate and replace a lot of the old legacy stuff that's driving them crazy. And they're looking for an open platform, new something that Box allows them to do. And so we've been really very, very selective about thinking through this piece of the strategy. And as Neil said, it becomes critically important. If I look at our own environment and the use of Okta single sign on, the use of Workday for HR, Salesforce, all of our customers are essentially a mirror image of ourselves. Success moving forward. Everything we heard over the last two days, our AMP box skills, Box Graph, this is all done in conjunction with partnerships. And so really our success is heavily predicated on theirs. And so we'll continue to nurture and develop these relationships moving forward. And then finally, truly transformational ways and something that we're really excited about. I'll give you an interesting example. I was sitting with a Fortune 100 client yesterday right after the keynote and he said we were thinking about Box Graph and I think we've got a perfect use case for it. And I said to him, what is that? And he said, well, think about this. When an employee leaves, they leave these tentacles across an organization. And they touch so many people in an organization, we have no idea what content or what data they had their hands on. With something like Box Graph, we now will get sort this security alert and we'll have an opportunity to figure out very quickly within our organization anything that's highly sensitive whether or not this individual would take it with them or not. And so our customers, as they walked out of these sessions yesterday, were thinking about real use cases that would really transform the way they do business. And so these partners are going to become critical for us as we continue to go deeper in this area. And then finally, it all gets underpinned with go to market enablement and infrastructure. We've made significant investments over the last couple of years in both the Martech stacks and marketing technology as well as investments in sellers and specialists all across the globe. And what I want to make sure we do is that we ground them in what I've always seen to be sort of the 3 key pillars for success when it comes to go to market. So this is skills and training. Are we have the right have the right tools to really get out and speak to the marketplace about the changes that Box will bring to their environment? And then finally, there's a coaching aspect of it, which we'll continue to do. This is something we do not just for our own people, but for our business partners as well, and something that we'll continue to guiding principles, which are our North Star. Our teams are 150% committed. This is a unique opportunity. That there is no one else that can really encapsulate everything that our customers need right now as they go on this journey. It's a complex environment. The CIOs on CIO Day early this week were telling us that they are struggling. They are sitting beside their CEOs and their boards and they're trying to ensure them and give them the level of confidence that they need that there is underlying infrastructure in the organization around their intellectual property and around what they do. And they're looking for partners that can help them achieve that. And VOXX is really the partner of choice. And so I'm really excited to be here. And I look forward to spending more time with you in the future. So with that, right on time, I will hand over to our CFO, Dylan Smith. Thanks, Seth. Awesome. Brethren, I'm 2 minutes early even, even better than on time. Good work. Cool. Thanks, Steph. So a year ago, at Analyst Day, we said that Box was at an inflection point in our cloud content management capabilities and in our financial model. And since then, we've significantly expanded our product portfolio, and we've delivered our first two quarters of positive free cash flow. Today, we've shared how Box is building the blueprint for the future of work by creating the simplest, most secure way to bring people, information and applications together. And for the next 30 minutes, I'm going to talk about how all of this shows up in the numbers and why we're so well positioned to seize the massive opportunity in front of us in cloud content management. So we'll start with the strong foundation that we built to go after this opportunity from our blue chip customer base to the leading CCM technology. Then I'm going to highlight some of the catalysts that we're most excited about on this next phase of growth. Then we'll dive into the compelling customer economics that we're seeing, including a deep dive into customer lifetime value. And then finally, we'll share how we plan to drive continued leverage in our business model as we scale to $1,000,000,000 and beyond. So first, starting with a recap of our first half results. And as a reminder, we have a January 31 fiscal year end. We put up 30 plus percent billings growth in the first half of the year, and our strong top line results are driven largely through larger customers as well as strength in international markets, as Steph's talked about. We've also seen significant bottom line improvements, generating positive cash from operations over the trailing 12 months. And these results demonstrate the strong momentum that we're seeing in the business. So we're seeing particular strength in our largest enterprise customers. So while we serve businesses of all sizes, we're really focused on the enterprise, right? And customers paying more than 10 dollars 1,000 annually now make up 83 percent of Box's revenue. So just to get a sense of momentum, in the first half of this year, we closed twice as many $500,000 plus deals than we did the year prior. And we now have 54 customers who are paying us at least $1,000,000 annually, and that's grown by 150% since we went public 2 and a half years ago. But enterprise is just one of the areas where we're seeing some pretty strong momentum. So we're also changing the slope of our growth curve internationally, as Steph and Neil have talked about. We've grown the contribution of our international markets from 17% a year ago to 21% percent today. And as Steph mentioned, that's being driven by some fantastic results we're seeing in Japan. Then going forward, we're also building out our operation in Germany this year, where we see a pretty compelling opportunity. And as it relates to the industry side of things, we're seeing the most traction either in regulated industries or industries where there's a lot of external collaboration. So the top 3 industries represented in our customer base today are Health Care and Life Sciences, Professional Services and Financial Services. And then there's one opportunity we're particularly excited about is in the public sector, even though that's only about 3% of our revenue today. So now we'll talk about how we're going to continue drive this momentum going forward. So this year, we've been accelerating investments in sales capacity and marketing technology that will set us up for rapid growth and sales efficiency improvements going forward. But many of the key growth catalysts that Steph and others have talked about are already beginning to pay off. So first, on the customer expansion side, we have more than 76,000 paying customers, 64% of the Fortune 500, and we're seeing consistent expansion across all customer cohorts. So on average, our customers are growing by 17% annually in dollar terms, and that's still being and that's still being driven primarily by seats. But increasingly, we're seeing new products as a catalyst in the business, opening up both new use cases as well as allowing us to go deeper or sorry, new markets as well as allowing us to go deeper with CCM use cases. And as Neil mentioned, we're building a world class partner ecosystem. These partners help us expand our product capabilities. They help us scale out our infrastructure, and they also provide go to market distribution and leverage. And many of the benefits we see by working with these customers show up in these international markets. And that's why we have a really, really compelling opportunity to continue growing there going forward. So we can now address most customers' data residency and compliance requirements. And with the new GDPR requirements coming next year, that can be another additional catalyst for growth. So we already have a presence in the markets that we want to be in internationally, so we don't expect to need to make significant investments to really capitalize on this opportunity. So all of these catalysts really help contribute to that land and expand business model that we've talked about in the past, which is the underlying land and expand dynamic is especially powerful in our largest customers. And this land and expand dynamic is especially powerful in our largest customers. So what you're looking at here are those $54,000,000 customers that I mentioned earlier. The blue boxes represent a year in which those customers expanded their contract value with us. And the boxes represent the year that those customers achieved $1,000,000 in annual contract value. So I note a few things here. First of which is that largely due to the momentum that we're seeing with Box Platform, we're increasingly financial services customers show up in this list. Another sort of dynamic that's changing is 3 years ago, we were barely selling $1,000,000 deals out of the gate. But as you can see more recently, that's happening a lot more often, these larger initial deals. And probably the at least in my opinion, most fun fact from kind of these sets of customers is over the past 18 months, all but 5 of these customers have actually grown their contract value with us. And a new addition to the slide this year, looking at these blue stars, those represent the from 25% a year ago, and those trends are accelerating. So a couple of years ago, in FY 'sixteen, we had 5 $1,000,000 customers purchase 1 of our newer products or at least one of our newer products. Last year, 21 customers did so. And already through the first half of this year, we've had 16 of these $1,000,000 customers buy one of those newer products. So we have a huge opportunity to continue growing within our existing customer base, not just by selling more seats, but also by selling additional products over time. And here's what those products look like and how our road map has evolved. As a reminder, when we went public 2.5 years ago, we were a single product company. And since then, we've added 5 revenue generating products to our offering. Some of them allow us to enter new markets like Box zones, Box Governance, and then some of them allow us to go much deeper into cloud content management use cases like Box Relay and Box Skills. And so as we continue to add to our portfolio and make kind of broader CCM solution sales, we expect new products and their contribution to our overall new bookings to more than double by the time we're a $1,000,000,000 business in few years. And you can see on this slide, a lot of the momentum that we're seeing in attach rates across customers who are paying at least $10,000 at least $100,000 per year. And that's a pretty meaningful part of our customer as well. Mentioned that $10,000 plus customers are 83 percent of our revenue, dollars 100,000 plus customers are 57 percent of our revenue. So as we further expand our portfolio and improve these attach rates, these new products can be really meaningful revenue drivers for us. And in past, we've noted the strength we're seeing in large deal counts and that trajectory, but we're also seeing deal sizes within these categories growing as well. So since we went public, the average contract value of our 6 figure customers has grown more than 20%. And when we make these broader CCM solution sales, we also generate greater pricing power. And so typically, we see about a 20% pricing uplift when we sell Box KeySafe and about a 30% pricing uplift when we sell either Box Governance or a 30% pricing uplift when we sell either Box Governance or Box Zones. And we've talked about in the past that price per seat has remained steady for the past several years, but we're actually seeing an increase of late as these newer products are starting to gain more traction. So as a reminder, due to we maintained a price per seat of more than 1 we maintained a price per seat of more than $100 per user per year. So this the innovation around our product capabilities represent not only a major growth catalyst for us, but it also drives a stickier product and stronger customer economics, right? And it's really these compelling customer churn rate of only 3.5%, and that rate is even better in our largest enterprise customers. At the same time, as I mentioned, the the average customer with us is growing by 17% annually. And again, that rate's even stronger when you look at the customers in the enterprise segment. And that results in an overall retention rate of 113% over the past year, which means that we would have grown revenue over the past year by 13% if we hadn't signed up a single new customer, right? So now let's dive into some of the details and what we're seeing in the customer life cycle. So here, we're going to compare what it costs to land, expand and renew a box customer and how ultimately that translates into a highly profitable customer base over time. So just when we look at all these spending figures as well, these are all fully burdened expenses, so include everything from ramping sales reps to allocated rent expenses. And the majority of our sales and marketing expenses continue to be geared toward acquiring new customers, and we recoup our sales and marketing expenses in about 21 months, which is an improvement of where it was a year ago when it was about 24 months, right? But at the same time, there's a lot we're going to continue to improve our go to market efficiencies, which we'll cover in just a bit. So as you'd expect and as was the case in the past, we typically see much more efficient expansion sales relative to landing new customers. And that's because once we've built a relationship with customers, once we've gone through the legal and compliance and security process with them, it's typically a smoother process to make additional sales. And then we also have very strong visibility into how customers are using the product, and that allows us to much more effectively target our expansion efforts. So on this type of sale, we breakeven in a little continue to see highly efficient renewal sales with the cost remaining at about $0.05 of spend for every $1 of renewal revenue. So if you add that to our 70 or combine that with our 75% gross margins, that means that our renewal base of customers has a contribution margin of about 70%. So what that means is that as our customer base continues to expand and mature, that drives a huge amount of leverage naturally in our business model. So putting it all together, every new dollar of annual recurring revenue that we bring in generates more than $9 in contribution margin over a 10 year period with today's economics, and that figure has gone up a bit over the past year as well, right? So we have enormous future value embedded in our revenue base of roughly $500,000,000 today. And as a reminder, about 95% of Box's driven by existing customers where we tend to have much better pipeline visibility. And so when you combine that with our best in class retention rates, Box has one the most predictable models in all of software. And so when we think about Box at $1,000,000,000 scale, we expect that the customers that we already have today are going to contribute more than 75% of that revenue. So those best in class customer economics and the trends we're seeing are the biggest reason that we're so confident in our path to becoming a $1,000,000,000 company. And going forward, we're going to be very focused on both gaining additional leverage by driving sales and marketing productivity primarily and on accelerating cloud content content management use cases. So I know you've seen this slide, Jeju highlighted it, but important to understand kind of how we think about the cloud content management market. So it's a pretty interesting dynamic, and we talk about a lot of these sort of large CCM wins and ECM replacements, would note that in some cases, we are outright going to replace legacy technology, whether it's a network file share or an OpenText So for example, extending the capabilities of FileNet. And then in some cases, we're going after completely new sort of greenfield opportunities, particularly with Box Platform. And that might be digitizing a paper based process, for example, or moving work that would have been done from an internal development team on the box. But in any case, as our product evolves, as we sort of mature a lot of the products that you're seeing and build out the product roadmap, we'd expect to drive disruption across all categories of this CCM market. And then this slide just goes a click deeper into what the enterprise content management market looks like today. This is IDC estimates pegging that market at about $9,000,000,000 and growing or expected to grow at a rate of about 9% annually for the next several years. This doesn't include I mean, this is just a subset of the cloud content management market, and this doesn't include things like collaboration, web content management or home directories, which in and of itself is a $4,000,000,000 market. And if you think about these categories, Box can address about 50 percent of this market already today. And as Jeet just highlighted, again, we're not porting ECM technology to the cloud. We are our growth in the coming years versus what our revenue base looks like today. And while we're going to be investing aggressively in capturing this cloud content management opportunity, we also expect to drive significant leverage in the model. So this is comparing kind of what our sales and marketing spend as a percentage of revenue was in the first half of this year versus what we expected $1,000,000,000 run rate. And we expect that the majority of this improvement is actually just going to come from the natural scaling of our model that we discussed earlier. But over the past year, we've also generated double digit gains in ramped rep productivity, and we're benefiting there both from larger upfront sales as well as from more efficient customer acquisition by leveraging channel partners. So we expect to continue making progress here and achieve some benefit both as our sales force ramps and as we benefit from the investments that we've been making in our marketing infrastructure. We also see our self serve business as another opportunity for leverage. That is our most efficient customer acquisition channel. And while we can use that engine to drive kind of test new markets, drive some growth internationally and then the smallest subset of our customer base, we're also increasingly seeing that as a really efficient way to fulfill business online across companies of all sizes. So we also would expect go to market efficiencies to improve as our partner contribution grows. And we have some pretty exciting partnerships in the work that we works that we've talked about over the past couple of days. And we'll have Fujitsu and Azure coming online and really ramping up as well. And then finally, on the far right, we expect to continue to focus on delivering our service to our free users as efficiently as possible and should drive some improvement there as well. So altogether, by the time we reach a $1,000,000,000 run rate, we'd expect to drive a 16 percentage point improvement in our sales and marketing as a percentage of revenue. But going beyond sales and marketing, we've made significant improvements in spending as a percentage of revenue across all areas of the business, right? So we drove significant leverage last year, and we've seen a more metered rate of improvement this year for the reasons we've discussed in terms of ramping up our sales and marketing investments in particular. And you can expect to see a steadier pace of improvement going forward on our path to $1,000,000,000 And then looking at the chart on the right, you can see the progress we've been making toward generating sustainable positive free cash flow. As a reminder, we're committed to delivering positive free cash flow in both Q3 and Q4 of this year as well as for FY 'eighteen overall. And we are also committed to adopting a a material impact on our financials, although we do expect some short term benefit to operating margin the momentum that we're seeing in the business, we expect to achieve $1,000,000,000 annual run rate by Q3 of FY 'twenty one, which is a quarter earlier than the time line that we shared last year. And if we were to generate 250,000,000 dollars in revenue in Q3 FY 'twenty one, the lead to that $1,000,000,000 run rate, that would represent important milestone for us. And then if you compare our Q1 of non GAAP profitability next year, which is an important milestone for us. And then if you compare the model that we're showing here on the right versus the target model from last year, you'll note that there's been a 2 percentage point shift from sales and marketing into R and D. So we're now more confident in the leverage that we have been driving and we'll be able to drive in sales and marketing. And we definitely want to make sure to invest against the CCM opportunity and continue to build out the leading technology in that area. So as we continue to manage our expenses and as we continue to benefit from scale, we expect this to result in operating margins north of 10% and free cash flow margins north of 15% by the time Box is a $1,000,000,000 business. So as a recap, Box is building the blueprint for the future of work. From everything you've heard about over the past couple of days, from from box skills to box graph to box elements, we're completely reimagining the way that people, information and applications can all come together. And we're really proud of the progress that we've been making across the business, from our product to our partnerships, to the financial model. And Box is now uniquely well positioned to take advantage of and really seize that huge cloud content management opportunity in front of us. And we expect our to $1,000,000,000 and beyond to be a pretty exciting ride. So with that, I would like to call up my friends and colleagues back to the stage with mics for some Q and A. Rob Owens from KeyBanc. Given the success that you've seen in governance thus far, I'm kind of curious, I think you mentioned yesterday you got a 1,000 customers. I guess the base of 76,000 customers, given how long it's been out and then looking at the stat where you showed that most of your customers that actually comes out of regulated industry, why aren't you seeing better penetration there? And is this the model for other kind of incremental opportunities as you begin to roll those out too? Why don't I kick off the answer for 5 seconds and then I'm going to force Stephanie to answer it. So basically, we as we've gone through this journey of becoming a multi product company, it causes us to need to change and evolve how we go to market and how we think about upselling customers because change and evolve how we go to market and how we think about upselling customers because we for literally 10 years running the only upsell conversation we have with a customer was how many more seats do you want and how many more people in your organization are using the product. It was not seats do you want and how many more people in your organization are using the product. It was not necessarily about navigating to different parts of the organization such as the legal team or the compliance side the organization or risk and security. So we were able to do that in the initial part of the sales process, but being able to go back in and present a completely new buyer with a new set of use cases other than just end user seats has been a pretty significant transformation for us. And I think it's we're at that inflection point from a go to market standpoint where now we want to be able to go and scale that up. So that's I think why it's taken longer than we would have liked to be able to see this as growing pretty quickly. But this is one of the biggest priorities of staff on the go to market side is how do we kind of ramp that up in a much more aggressive way because we do know that products like governance have wide applicability. So I don't know if want to talk a little bit about what that looks like. Sure, for sure. And I might even throw in a couple of real stats just to give you an idea of the traction. So we've been spending a lot of time working with our sellers and the partner sellers on helping them to sort of change this dialogue with the client and really going in and understanding how do we help them rethink some of their business challenges. And it's working. We're getting traction. And I was just looking, I hate to get a little nitty gritty, I was looking at pipeline data last night and just to give you some numbers. So of all of our commercial pipeline right now, 76% has governance attached to it. So it's working in terms of just changing this dialogue. It is a conscious motion to be quite candid. I've been through this over the years to move from what is essentially selling deals to solution selling, consultative selling, becoming a trusted advisor. And the conversations that I've had this week alone with the CIOs and the CSOs are telling me that they understand that this is a much different dialogue now. And so my job is to ensure that our people, our sellers and our partners are able to have those conversations because to be quite candid with you, I think they're looking for the solutions and we've got to step up now and we have this opportunity to have that dialogue. So the signs are very promising and we're just going to keep pushing it harder. Phil Winslow, Wells Fargo. A question for Dylan and Stephanie, then a follow-up for Aaron and G2. Dylan, thanks for providing the updated economics on the land and expand. We saw that $2 gone out and $1.75 for the new acquisition and then obviously the upsell stay at $0.90 I mean obviously to improve that ratio you can either call it lower the $1.75 or you can improve the dollar that you get forward so to speak. So call it lower the $1.75 or you can improve the dollar that you get forward so to speak. So what it's actually been improving that over the past year? Has it been sort of the revenue side of the equation where you're getting higher price per seat because they attach or just bigger deal sizes or has it been sales productivity? And as you think about the long term model, Stephanie, you laid out a lot of things that you want to drive there. What are the things you think you can hit, like a hit hit on early versus that will take longer to get that margin ramp and that productivity? Is it if this is still on, can I just talk? Okay, great. Fantastic. So the biggest impact there, I mean, there's as we talked about a of different levers that we're pulling, some on the kind of top line, some on the bottom line of the equation to drive those efficiencies. The biggest impact has been on the top line sort of productivity piece, right? And that's been driven largely kind of showing up in higher average contract values, particularly for that initial sale. And that's in large part being driven by some of the new products and higher price per seat that are showing up. So we continue to drive improvements in things like the free user marketing as a percentage of revenue has gone down pretty significantly. But in terms of the magnitude, the biggest thing driving that is really just rep productivity being driven by higher price per seats, higher average contract values. I'll jump in there. In terms of short term versus long term, so I guess we're doing a number of things. We've increased the engagement with our customers sort of on a very proactive basis to go in and have these dialogues. So what we're doing and I'll give you an example. So I was out on the road for 3 weeks with the team. And essentially, what we are going into existing customers and what we are going into existing customers and reframing the conversation entirely. And we're actually taking them on the journey. We've got some tools that we're leveraging now to show them this is how you're using the technology today. This is where we think you could be using it better and these are the recommendations for getting there. And so we're literally taking them through this both at very top levels all the way down to our admins. And so we've got some very, very focused programs around enabling the admins, getting into line of business, looking at where we've actually got traction going into the CISOs thinking about some of the things that we're doing from a security perspective, adding governance. So it's just a very different conversation. We're taking a fairly approach to be quite candid. I'm a little bit OCD like that. So, and look, sales motions, it's really about engagement. And I can't stress that enough, getting out there and having these dialogues. It's one of the reasons why we're really emphasizing this enablement piece for the extended team, because this conversation is not this is not siloed when you think about customer lifetime and the long lifetime value of the client. What we want to do is not just capture this dialogue in the presale stage. We have an entire organization that talks to customers every single day in customer success. We have a team around online who's and the community side who continue to build those relationships. So we're spending a lot of time thinking about what how do you connect all of these sort of touch points and actually change the conversation within an organization, both an existing customer or a new client and really expand upon that. And we've really program it now. And it's going to become sort of part of the wiring as I call it or the D and A of the organization. And as we do that, we're having this conversation around the breadth of portfolio. This is about multiple products within the product suite. This is not about selling base user licenses. So it's a completely different selling motion for the guys and girls, but we're getting there, which is great. Most of the hiring process for Stephanie was me just testing to see how OCD she was. So left a little dust on the counter and see if she like freaked out. So she's bringing a lot of operational rigor to how we're moving customers to the journey. Through that journey, exactly. And then just a follow-up on the product side for Aaron and G2. Obviously, very exciting with Box Skills here. And my question here with AI ML is how much of this is a framework to enable customers to apply machine learning algorithms to the content versus actually Box maybe being able to apply it to its own products. I mean, I could think how this could be used in Box Relay for contract approvals, 95% get approved, only service the 5% that don't or governance, say, based on what's in this content, this is how you should govern it. And so how do you kind of balancing those 2? I think it's a combination of both actually where you'll in fact, there's a 3 part effect. One is you actually see customers directly using skills and skills get to go out and build interesting skills. There will be a secondary, which is a partner ecosystem of SIs. This will be a huge opportunity for them to start engaging with us over time is what we're hoping. And then our product portfolio, I think there is a tremendous amount of opportunity right now and we just scratched the surface with especially with like in the area of security, in the area of governance. I think there's a lot of predictive intelligent kind of experiences that could be created, which I think you can just expect over time. And this going to be a decade long journey for us as we start thinking about AI and ML like this is not a one and done and we'll be talking about something next year. Like there's going to be a fair of kind of innovation that you'll start to see happen here across all dimensions, including the ones you mentioned. With just to play on that for a second, on Box Graph, so the first thing we announced was something more for just end user productivity, which was feed. But Gigi mentioned that security is a big domain that has a lot of innovation potential. One thing that we see is customers don't really know where their sensitive intellectual property is. And it's because users don't tag the content as sensitive. But when we can begin to correlate different work behaviors and different ways that people are working with information and then layer on anomalous events that happen to that type of content. So all of a sudden somebody from the legal team looks at something that we think is a contract from a device that they've never loaded it from that creates a lot of signal where normally you would just have a bunch of noise of data events going into somebody's SIM logs or security apparatus. And so what we can do is take the graph which is basically a mapping of all the relationships between events and content and people and information and start to say to the security team, hey, we think this is an 80% confidence level event that you might want to pay attention to and here's why. And we have a proprietary understanding of all of the things happening to content in Box. So that gives us a way better ability to give you things that have just way more context than you would get in just a generic kind of log format or environment. And so that's really where we see the graph opportunity and skills and graph just sort of feed each other and you get this really nice virtuous cycle where the more context we have about the content from skills feeds into create way more of a map of how the enterprise is using its information with graph, which causes us to be able to build a bunch of functionality from there. Greg McDowell with JMP Securities. I wanted to ask about Box Relay. You mentioned 250 beta customers already. It's coming to GA in November. I was just hoping you could expand a little bit on how we should think about sort of the product cycle of Box Relay compared to some of your previous SKUs like governance and zones and such? Power cycle from an innovation perspective? Yes. Well, how should we think about the ramp of Relay getting into the customer base compared to the ramp of the other SKUs you have? And then one quick follow-up. You want to take that from a go to market? Yes. From a go to market perspective, to be honest, we've had to kind of keep people at bay somewhat kind of maxed out. So there's been kind of maxed out. So there's been this great anticipation around this product. And because of the practical nature of how these changes workplace within organizations, it's incredibly tangible for them and they immediately can see how they can apply it either in pockets or at scale within their organization. So our teams have been clamoring for it. In all honesty, we've been pushing Jeetu and the guys we've got a backlog out there. And so we're ready to go as soon as the GAs. I think the only other piece of context I would probably add strategically is Relay is the first add on product we've done maybe besides platform where it's not necessarily that every seat within the enterprise is going to utilize it. And so that might be the one thing that's different. So governance you turn on for the entire enterprise, zones you turn on for the entire enterprise, key save you turn on for the entire enterprise. And so this is lesser of a reflection kind of contract value and uplift that we expected more about the use cases are going to be very sort of function specific and so very line of business specific. So marketing team might adopt it or a legal team might adopt it. That we don't know all the implications that will have from a go to market kind of standpoint. So it will not be one to 1 parallel with governance in terms of the universal deployment of the product, even though we think it's universally applicable to have workflow built on top of on top of Box. Yes. Thanks. And then one quick follow-up for G2. I think Box platform has been out for a few years now. And when it was originally released, it had one pricing model. And then about 6 months ago, I think in April, you introduced a new pricing model for Box Platform. So I was just hoping you could sort of give us an update on how that's trending overall? Thanks. Yes. So we don't specifically disclose numbers on kind of breakdown of the platform, but what we do standpoint that what it did was, it took away the concern one of the things we wanted to do was it took away the concern one of the things we wanted to do with the pricing model is not have it be a friction point for people going out and adopting this. And in the platform and developer community, what we found is if you don't provide people what pricing at scale looks like when they do scale up, they tend to be apprehensive to go out and start using it upfront. And so what this pricing model does is actually really unlock that behavior where the concerns went down on how much what the scale pricing is going to look like. So we've actually started seeing some very, very 1,000 of 100 of 1,000 of dollars even though they might be a small company. So you start the behavior over there is, 1, they feel comfortable for price at scale. They're actually starting to see this being a pretty strategic kind of imperative of what they're trying to do internally within the organization. And the new pricing model from a resource standpoint is good because it benefits us. As they scale up, we actually start to make sure that we keep benefiting from the model. So I'm really glad we made the change. We actually learned a lot from the first pricing model to go out and iterate on it. And pricing is always tricky in these kind of scenarios because you don't really know what's going to be the case. But what you're also starting to see is now you're starting to see a lot of customers come to us with, hey, I want to have an ELA, where even though you've got these kind of pricing models by resource, now I have all of these different areas and how can I go out and just do an ELA, which is a really good signal from the standpoint of not just the financial services segment where if you look 5 years ago that was one of the segments that we had not penetrated as well and now all of a sudden you see that as a very, very rich opportunity for penetration? Melissa Franchi from Morgan Stanley. Just have a question on Microsoft Azure relationship. So I'm just wondering, it's great that the sales force can now sell Box, but are they neutral to selling Box versus OneDrive? And is there any reason to believe that this relationship will incentive dollars for sellers at Microsoft is for consumption of Azure, not for licenses of traditional products. And that's a they were just working through that, that they did that June 1, another new fiscal year. So what we're seeing, there are situations where a Microsoft account exec who's agnostic. So imagine that they've already sold and deployed Office 365, but for different reasons, OneDrive or SharePoint Online are not deployed. That AE could stand to make more money if Box is deployed to that customer than if Office 360 sorry, if OneDrive is turned on. And that is by design, because what they want to do is let the customer decide which tools are going to be relevant. And if they lose the battle on a particular tool, their sales reps are equally incented to ensure that Azure consumption is underneath those tools that the customers choose to bring in. And that's not a hypothetical, that's a real Microsoft have been very smart here relative to the other public cloud players, because they get that they have got the purchasing relationships all around the world and pretty much every enterprise that anybody would want to work with. So they have actually changed it. Now we've not yet seen because the product will ship in November. We are now just like I mentioned earlier turned on the system that work. I will add one thing on the competitive side on OneDrive and SharePoint that's pretty important for this room to understand is and we starting to see this a lot from customers who are getting frustrated is OneDrive and SharePoint and SharePoint for external teams are all completely different product stacks. And so and what ends up happening sometimes is you start they actually promote OneDrive as OneDrive as a teams. And so what they recommend, this is not us and collaborate that content with teams. And so what they recommend, this is not us making it up, this is them saying it, you have to actually copy that content from OneDrive to SharePoint. They then put a website page up that says, when you're copying the content, you might have some issues. So here's a troubleshooting page for it. Net team site. Big kind of area where customers are excited about it is that allow actually doesn't allow them to have a single policy engine that applies policies across all pieces of content because you're duplicating content. And one of the big kind of reasons why customers are excited about using the Azure infrastructure, we're using Boxes because you have a single place where content can be kept. And once you apply a policy on content, you don't have to go out and reapply from different places depending on keeping track on when people duplicated the content. And that's a huge difference that I think you're starting to see the market now really pick up on. I think we have time for one more Brian Peterson from Raymond James. So Stephanie, I just wanted to hit on your comment on the ACV potentially doubling to tripling over time. So if we think about a $500,000,000 run rate, you get to $1,000,000,000 just by doing that. So why wouldn't the focus be on I've been e mailing everybody to us. Management via Wall Street. So I'm just curious as we think about upsell versus new sell. And then if you have to kind of reengage those customers at a different level because funny because Jeetu and I were chatting about this earlier. The customers want to have a different conversation. I was sitting with a Fortune 50 yesterday morning, the CSO, and he says to me, Steph, I have to report back to the Board. We have 27 places around the world that are holding incredibly sensitive data and I'm responsible for this. So what am very apparent to them that they're just not driving either the productivity gains or the efficiencies or just meeting the needs of their customers, their own supplies and vendors. So I've had multiple conversations that look like this all week long where they are basically and I'm running out to a bank right after this, they are having this conversation with us. So I don't feel like this is going to slow us down at all. I don't this reengagement is really on our side, it's really making sure that our sellers are ready to have this conversation because the customers are ready. So this is there is no shortage of demand on their side. It's really us taking advantage of this opportunity right now. And it's one of the reasons why I was so attracted to coming to Box to be quite candid with you, because there's this huge opportunity that Aaron wasn't capturing enough. So and in all seriousness, it's there. Look, I spent my entire life in and out of customer sites. That's all I've done all my life. And this is a unique opportunity that we have and they're telling us this. I think it was G2 that said this. And we had Jeff Immelt, our CIO, the other day, and he was really very clear with every executive in that room in terms of you guys are crazy. He essentially said, if you aren't thinking about what Box can bring to the table for you. So from our perspective, it's really our opportunity right here. So I'm not worried about that pace at all. I think thereafter they're really pushing us, and so the onus is on us now to capture that. Great. I think with that, we are out of time for the afternoon. But I wanted to really thank all of you for being here, making the trip to be here or to be on the webcast. And if you have any questions at all, please feel free to reach out to myself or Alice, IR at or to our direct addresses. And we very much look forward to speaking with you. Thank you. Yes. Thank you so much. Really appreciate everybody coming out.

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