Welcome, everybody, to the afternoon of day two at the Citi Technology Conference. I'm Steve Enders, part of the software research team here at Citi. With us now we have Box, Aaron Levie. Super happy to have you here.
Thanks for having me.
Maybe we can just start off on, I think most people probably know Box at this point, but maybe just kind of walk through high-level takeaways, what's been happening with the business, what happened in this past quarter, and then we'll kick it off from there.
Yeah. So, in terms of the general state of the business, we are going through a pretty exciting period as a company, and we've talked about this a little bit around this idea of entering, you know, almost a new chapter as a business. We are driving this idea of having Intelligent Content Management in the enterprise. When we started the company, the core idea was make it easy to access and share files from anywhere.
As we grew within enterprises, we then really sort of focused on: How do we help scale up managing content, securing it, governing it, reaching really any kind of scale within an organization? And that's, you know, effectively been the business for the past kind of decade and a half, is help companies manage their documents and their content, help them secure it, help automate some degree of workflows, connect into other software that they're using. That's been the whole sort of push on this idea of having a content platform in the cloud.
But we've always sort of, you know, had this, you know, kind of big idea, which is, well, what if we could actually, like, turn all of this content into real enterprise value? So not just a document that you look at, that you want to read, and it has some information in it, or you have to go and redline something, or you have to share it with a client, but what if there was really, you know, sort of deep value inside of all this content? And when you think about sort of the role of content in an enterprise, content is sort of the movie script that turns into a blockbuster film.
It's the design files that turn into a breakthrough product. It's the marketing asset that turns into a new campaign. So content has all of this, you know, tremendous amount of value inside of an organization, but it's only valuable when people kind of open it up and look at it or watch it or read it or listen to it. And so with GenAI, we have sort of finally, I think, cracked the nut on this idea of what if we could turn this into real business value inside of your organization.
What if we could actually sort of flip this equation on its head, where, you know, traditionally, the more unstructured data you have, the harder it is to find what you're looking for, the harder it is to get value from your information. What if we could flip that, and actually, for the first time, actually, you give us any amount of information, and we can effectively create more intelligence in your enterprise, or we can help you automate more business processes, or we can help you better secure your data?
And so that's what AI is unlocking for us. So the days of sort of managing all of your documents in storage infrastructure, in on-premises systems, with lots of kind of archaic technology that you have to kind of cobble together to make it all work, those days are over. And we're really now entering this period of Intelligent Content Management, and we're building the leading platform to power all of these use cases for customers.
Okay. No, that's great to hear, great intro. We do want to make this interactive, so if there are questions in the room, we'll make sure to get to those. But before doing that, I do want to ask a little bit about the macro.
Yep.
I guess maybe what was different this quarter? I think you had pretty good, strong execution, RPO growth was solid. Billings, billings came in better than expected, but maybe what's different in the deal environment this quarter versus what you've seen in the past, and maybe what drove the outperformance that we saw?
Yeah, so on the macro front, I would largely, you know, kind of say that things are more, you know, kind of, you know, pretty consistent with the past kind of one to two quarters, so nothing, you know, kind of dramatically improved, but also nothing that's sort of worse. We're still seeing some pressure in our SMB and kind of commercial business.
We clearly made up for that in other areas, seeing strong performance in U.S. enterprise, in some cases, public sector, especially in the U.S. Japan has continued to be a strong, you know, business for us, so we're compensating for some areas where we're still not at the level that we'd like to be, so let's say macro, kind of somewhat stable, again, not; w hich is distinct from being dramatically improved, but stable at the kind of, you know, rates that we've seen in the past couple of quarters.
A nd so a lot of just, I think, very strong execution in the quarter. A lot of excitement and energy around Box AI, which you can only get access to in Enterprise Plus, so that's our highest tier, kind of enterprise edition that has all of our functionality in it. So we've seen a lot of customers that, you know, maybe we had already tried to upsell to Enterprise Plus in the past with Box Shield, or advanced eSign functionality, and maybe, you know, for whatever reason, it didn't kind of register or click. AI has been another catalyst to kind of get that upgrade cycle going.
And so when you think about it right now, you know, we have about a little over 40% of our revenue base is not in an Enterprise Plus or kind of multi-product suite tier. And so we have this incredible base of, you know, a meaningful portion of our total account value that we can still move into the Enterprise Plus plan. And so that's been a lot of the momentum across the business, is how do we get our customers to upgrade into this higher-tier plan? Q2 is a great example of that playing out in our execution.
Okay. No, great to hear. I know you mentioned AI in there as helping maybe be another pillar or another way to push people to get to that Enterprise Plus plan. But, I guess how would you kind of define where the market is today for AI in terms of how customers are considering what they want to leverage AI for, and how do you kind of view the impact AI is having on customer budgets and decision-making at this point?
Yeah, so, so, you know, we made a very key decision early on in our AI evolution, which was we're gonna bake AI into our overall platform story, as opposed to treating it as a side, kind of, separate product that we've seen from other players. And I think to each their own on different strategies, but our strategy was very, was extremely sort of well thought out for one particular reason, which was we asked ourselves, if we were to start Box in 2020, you know, at the time it was 2023, but you know, if we were to start our Box in 2024 now, like, if we were like going through Y Combinator and we were starting the company, you know, we would not be like, "Okay, there's two versions of Box. There's, like, the basic version of Box, and then there's, like, the intelligent version of Box."
That's just not how you would do it. So at these kind of major moments of platform shifts, it sort of behooves you a little bit to step back and say, you know, "What would your company be doing? What would the right strategy be if you started your company from scratch in this particular area?" And it's, like, very obvious that you just would not build AI as a totally separate capability. You'd actually have intelligence baked into the core of the platform, and that got us to really be energized by this idea of once intelligence is built into the core of software.
Y ou know, maybe each category will be slightly different, but in our category, that truly then kind of creates an Intelligent Content Management platform, and you don't want to then have AI as this sort of separate add-on. So, for us, AI is something that we bake into the core of the platform. We will have different ways of monetizing the usage of AI, depending on the use case. So this is not kind of, you know, sort of holistic, but in general, you can think about it as if you just want to ask questions of your documents, so you take a document, you wanna summarize it, or we have a new feature called Box Hubs that lets you ask questions of any amount of documents.
So if you want that capability, we have said that's going to be an Enterprise Plus, and it'll be unlimited. So anybody who's just saying, "Hey, I want to be able to have a quick portal that lets me have knowledge management that people can ask questions of," we're gonna make that unlimited, and that's included in our Enterprise Plus tier. That's separate from other ways of monetizing. So, for instance, we just acquired a company called Alphamoon. Alphamoon does intelligent document processing.
So if a customer comes to us and says, "Okay, I have a million contracts that I want to go pull out the metadata from those contracts, so I can automate a workflow," we have not said that that's unlimited and included in a plan, and we anticipate that you'll pay kind of by volume for that type of use case. And we have some features that are gonna be fully included in our highest-tier plans. We have other features that will monetize through consumption or through other mechanisms, so we still think there's a lot of upside on the table. But our general philosophy is that in the future, people will not sort of think about paying for AI. They're gonna be paying for value propositions...
Mm-hmm.
... just as they always have in software, and so the value propositions that we can monetize are gonna be ones that can, you know, be labor augmentation or save customers time and money, and those will be the things that you see us monetize over time. Metadata extraction's a perfect one of those. Advanced data security could be one. In a future where you have AI agents that run around and operate processes for you, that could be another. But you know, we will monetize in a way that is kind of correlated to the value that we're commanding.
Okay. So when you think about kind of the core use cases that Box is now able to support with AI and kind of how that changes some of these workflows, kind of, what's the customer feedback been for Box's ability to execute on that versus maybe what people were doing before?
We're in an interesting category where, you know, if I had to, if you kind of stack ranked all software categories by the level that AI changes what you do in that software category, I know it's a little bit of an unusual way to kind of think about the problem, but if you're gonna look at all software categories and we just had like a you know category map of technology, and you had like ERP, and you had CRM, and you had HRIS, and you had ITSM, and you had all these categories-
Yeah.
I would argue very, very, you know, forcefully that content would be in the upper decile, upper quartile of categories that is most benefited by AI. Because to your point on what you did before, if I have a bunch of documents that are contracts inside of an on-premises document management system, you know, by and large, other than a few exceptions, if you want to take the data from that contract, like the renewal date and the key party names and the key clauses, if you wanna take that information and you wanna structure it, you're gonna have a human go and do that.
They're gonna read through the document, and they're gonna pull out the data. You know, maybe some very sophisticated companies bought RPA systems or IDP technology to go do that, but for the most part, those technologies are under-penetrated relative to, you know, the entire universe of contracts. So do that for contracts. Do that for digital assets. Do that for invoices. That's how we have been managing our data in these legacy systems. You really can't find what you're looking for. You can't really automate any process. You don't really have insights into what's in this information. AI is the big unlock.
Mm-hmm.
So if I think about all those categories, which category transforms the most because of AI? Or again, you know, which categories transform the most? Content would be one of those top categories, right? Like, you're not gonna fundamentally change the data that comes in or out of an ERP system as a result of AI. Things will get better for sure.
Mm-hmm.
B ut, like, it doesn't completely transform how we think about closing the books at the end of a quarter. AI transforms how we think about our content. It turns the information that you have inside of your PDF into just knowledge that somebody can go and ask questions of. So you're no longer interacting with a document anymore, you're asking questions of a set of information.
So that means that by extension, for enterprises, you're going to be rethinking, how are you using your content? How strategic is your content? How could I use my content to make better decisions? How could I use my content to better onboard clients? How could I use content to deliver better products to the market? Those are the kind of conversations we're now having with customers, and you would never have been able to do these things with on-prem systems or any legacy way of managing this information.
With this in mind, you know, to your point, there are a lot of on-prem ECM systems out there. Are customers at the point where they're more willing to put their content and move that to the cloud? Or maybe where are we kind of on...
Yeah.
... that journey to SaaS?
Yeah, so I think it's accelerating. I think AI is becoming a bigger accelerant to it. And what's great, and again, even our pricing strategy sort of tried to anticipate this. We want to use AI as just again another catalyst to moving customers to the cloud from these on-prem systems. So if you have an on-premises document management system or a network file share system or storage technology, we want to help accelerate that move to the cloud.
You're gonna get better security. You're gonna get better workflow. You're gonna get a better user experience. It's gonna plug into all of your software, and now with AI, you're gonna be able to bring the full power of AI to all of the data. That's just something that on-prem vendors, you know, by and large, cannot promise or really deliver on in any meaningful way.
Okay. I mean, are you beginning to show it or are you beginning to see it show up in...
Yeah.
... like pipeline builds at this point? Like, are you seeing-
We're seeing it in deals that are closed. We're you know very regularly taking out legacy ECM systems and moving those customers to the cloud. We do see it in our pipeline, and as you see us lean more into this idea of Intelligent Content Management, you will also see us accelerate the messaging around you know kind of traditional ECM systems moving to the cloud.
No, great to hear. I do wanna pause and see if there's any questions in the room real quick before we maybe shift gears and talk a little bit more on the product strategy side. Okay, so I do wanna ask on, since you have been investing so much in AI, like, what does the future roadmap look like? What does the next kind of Box experience look like...
Yeah.
... for the common customer two years from now?
Yeah, so I think the highest altitude way to think about this is, and what AI is now capable of is basically imagine all of the work that we do as humans on content.
Mm-hmm.
Imagine a scenario where you could describe to an AI system, what work you're doing or what work you want to be done to your content, and you could create, effectively, an agent to go and do that work for you. So, I, you know, have a legal review process where a document, a contract comes in, and I, every single time, need to figure out what are the riskiest clauses that violate our, the things that we can sign up for.
So what if, you know, that contract comes in, and instantly it spits out an answer to, "Here are all of the things that you can't sign up for, you know, in this contract." Or, "Here are all the conditions that don't meet your normal, you know, your standard, you know, master service agreement with a customer."? And you can describe to an AI agent, what is it that you need it to look for, and then how to basically, you know, sort of find those issues in your documents coming in. So the future is being able to have AI agents that can, you know, you can basically tell to do work for you.
Mm-hmm.
Review an invoice and route it to the right person, review a contract and call out the riskiest clauses. We had a customer, fascinating idea. We had a customer in Hollywood that said, "I want to take a movie script, and I want to get a proposal for all of the best locations to film this movie that have the best tax deductions for filming in that particular city or state." And so this marriage between external knowledge and data that you have that's proprietary and, you know, that particular example, you would be able to literally create.
We don't have, you know, all the things announced yet, but you'd be able to, in our future state, create an agent that does that in probably, you know, five minutes. And so, i n five minutes, you could create an autonomous agent that could go do, you know, three hours of work, you know, that a human would have to do by reading the script, taking notes, going, correlating everything, and this AI agent will be able to do that in, you know, ten seconds. So that's the kind of compression that we're seeing, and it's the kind of interesting, you know, just brand-new ideas that are coming out of the woodwork from customers.
You know, here in New York, I met a number of our financial services clients just yesterday, and at our customer dinner as well, that we brought them all together, and you know, the conversation's around how do I rapidly onboard clients where we have to review 10 or 15 different documents from them to make sure they're all in good standing? And a human right now is doing that, and that's creating a you know, multi-day bottleneck in our ability to process a trade or a loan or some other kind of product for that client. Well, AI is like, can just read those documents...
Mm-hmm.
... and you can just tell the AI, "Make sure the bank statement is up to date. Make sure this is a real address. Make sure that you can correlate, you know, these two documents together." And this was all human time previously, that you had to go and spend on these types of initiatives. So none of this is possible without the ability to, you know, have AI agents that you can kind of teach what that workflow is, and then put that particular execution in a broader workflow. And we are building the kinds of tools to enable that.
Okay. And so the, the future vision you're thinking about for Box, like, it seems pretty, pretty exciting and pretty interesting. Because what do you think of, you know, Box's right to win for capturing that kind of a use case versus, you know, some of the other AI solutions or, or platforms that are out there?
Yeah, I think, I think right to win is a really interesting way to think about this environment right now, because you have a lot of companies trying different, you know, sort of trying to figure out where are the boundaries of each of our software categories, and which spaces can we enter because of AI? Which spaces can competitors enter? I think everything I just described is so content-centric that we have a very strong right to play.
So anything where you are like, "Oh, man, I have, like, these, you know, million documents, and we add another ten thousand every week," you know, client statements, loan processes, contracts. We're just the natural platform for that. Because to manage all that data, you need security permissions, you need storage, you need data governance, you need a workflow engine, you need a user experience to let you just work on the content.
You need to do really just, like, kind of relatively boring things we get excited about, but most people don't, which is we convert every single file type, you know, with a couple of exceptions, but essentially every file type that we all work on, we convert into a browser-readable format, so you can look at your documents. Like, there's just, like, not a lot of AI products and companies that want to take a PowerPoint file and turn that into a web-readable document type that you can look at.
So you just take the hundreds of things that we've been building for eighteen years to help companies manage all of their content in the cloud securely. AI gets layered on top of that. That's how we then get into these workflows. Versus a lot of other companies would not be able to conversely build the eighteen years of infrastructure that lets them do document-centric use cases.
Sure.
Now, there's one interesting thing that's happening as an industry that I'll just allude to, and you'll see announcements over the coming months from us and others around this. We are all trying to figure out, what does a multi-agent future look like? Because there's a scenario where you're in Salesforce, and you're interacting with an agent within the Salesforce environment, and that AI agent needs to pull a document from Box.
So we're all trying to figure out, how do our AI kind of experiences and agents line up and work together? That's an ongoing conversation. We're having it with ChatGPT, we're having it with Copilot, we're having it with Perplexity. We're all trying to figure out, what does this sort of multi-agent interoperability future look like? Because we know we're not going to be the only place where you're doing AI. We actually are totally fine with that, so we want to plug into all the other places where you're going to be having these experiences get executed.
In fact, one great example, we didn't even kind of push for this, as sort of. We just saw it happen. At the ServiceNow Knowledge Conference in May, maybe timeframe, they did a demo on stage where Now Assist, which is their AI agent, pulls a document from Box to answer a question, and that's exactly how we see the future working out, which is you might be interacting with AI in any other platform, and we need to make sure that your data from Box is available to those systems in an AI-ready way.
Makes sense. I'm sure we'll hear a lot more about that at BoxWorks later this year.
That's a prediction I think we can fulfill, yes.
Awesome, great. Because you are doing, you know, it seems like so much kind of in this content space right now, how do you think about, like, what Box focuses on organically to build out versus maybe where it makes sense to go acquire something...
Yeah.
... or try to partner on that?
Yeah. You know, I think it's always a mix. There are some areas where we have a natural talent group or architecture pattern already in the business that we can expand out from. So in a new area. So when AI emerged with GenAI, we already had a team working on, you know, kind of core machine learning infrastructure and distributed systems infrastructure and connecting to external systems because our prior AI endeavors involved, you know, connecting to external AI systems. So in that case, it was actually faster for us to have that team go and build the abstraction layer that is now called Box AI than, you know, go out and do an acquisition.
Mm.
So we built the core kind of foundational infrastructure using our team, and so that's an example of a net new, you know, kind of relatively disruptive innovation, but where our team was better suited to go after the problem. Conversely, and now just to kind of continue the thread, we've wanted to get into this idea of document kind of metadata extraction and document processing, and there's a full category, it's about $1 billion-$2 billion, called intelligent document processing or IDP.
And there's, you know, probably 30 companies in this space in different kind of configurations. We said: Okay, we're really good at connecting content to AI, but there is some sort of processing that you tend to do to make sure that the document is in as ready of a format as possible for the best sort of metadata extraction. And there's a set of interface components you need to manage that process. 'Cause you need to have a queue of all the documents you're working through, you need to have error handling, you need to be able to have, like, a test environment for the customer to go and review that.
And that's a bunch of stuff which is like, you know, we could go and study the space really deeply, but we'd be like, you know, moving teams over. Nobody's really been working on that previously. And so we said, "Okay, well, maybe there's talent out there or technology or IP out there that has already solved this problem, that would dramatically accelerate our time to market by a year or more, and we should go and see if there's anything like that." We ran into this company, Alphamoon, very, very conveniently, not even necessarily intentionally.
They're built out of Poland, where we already have a large engineering effort, and so we found this company. It was, like, exactly straight down the middle of our target zone of exactly how we would want to build this product. And we said, "Well, you know, it would dramatically de-risk our ability to go build this feature if this team was just they were just Box employees, and all we asked them to do is just go build exactly what you just built, but now within the Box, you know, kind of umbrella."
And that's sort of how we are executing on this. So if there's a step function change in new talent, new DNA, you know, new skill set, where we can accelerate our product roadmap in a meaningful way, we're very we will always lean into acquisition in that sense and in those areas. And so that's, you know, kind of hovered at maybe two to three a year for the past kind of three or four years.
Right. All that makes sense. I'm going to pause here. I'm going to touch a little bit on go-to-market, but I'm going to see if there's any questions in the room before doing that. All right, so maybe going to, you know, I think we've already talked a little bit about the Suite strategy...
Yep.
... and how well that's moving. I think it's around 60-ish% of our revenue today is on Suites customers.
Fifty-seven, fifty-eight, yeah.
Okay, I guess, how do you view where that number could go over time, and kind of what are the future drivers of that opportunity?
Yeah. I always forget what, like, Dylan will say to this. So if we're in, you know, if you separate us, we might have different numbers. But I think what we've called out is somewhere between the kind of 80%-90% range is I think our directional view of the potential. So maybe there'll be roadblocks in the way there, but when we look at, you know, what does the first 57%-58% look like versus the total base, and we think there's at least another 20%-30% to go of customers that could buy into Enterprise Plus. So the drivers of that now, obviously, AI is the newest catalyst. You know, we're only four months, five months into it being even GA.
Mm-hmm.
It's already kind of providing a little bit of a tailwind on the E Plus upgrade motion, so I think that will have plenty of runway for the foreseeable future. That will continue to get more mature. Our Hubs product, which is our multi-document kind of Q&A feature, will get more mature, and that will cause people to upgrade as well because of the AI capabilities. And so that's the Enterprise Plus motion.
Then, we've kind of called out that we anticipate another plan on top of Enterprise Plus, that you know, for the most part, the Enterprise Plus cohort will be you know, by default, probably the most natural to upgrade into that. But you'll get a lot of non-Enterprise Plus customers leapfrogging Enterprise Plus to go into that higher tier plan if they have advanced workflows, or business processes that we can solve. So we have another, you know, eventual tailwind as we have another product plan out there, that would be one of these multi-product plans.
Okay. I think we've been talking about, I guess, for lack of a better term, Enterprise Plus Plus now for...
Yeah.
... for over a year now. I guess maybe firstly, how does it kind of augment, or like what are the different use cases that it kind of brings on? And I guess secondarily, you know, it has been over a year, I guess what's kind of been the roadblocks to...
Yeah.
... to actually driving that over the finish line?
Yeah, I do want to be very precise, and Cynthia can yell at me if I'm wrong, but I think that Wall Street has been talking about it for over a year. I don't believe that we have; w hat was the first time that we acknowledged? I think what happened, what started happening was somewhere last year, people said, "Is there going to be a plan above this?" Yeah, but, like, we didn't, like, introduce the concept. Did we? I doubt we did.
You can, you can blame me for it.
Okay, okay, fine.
Yeah.
Well, what was happening was, we started getting questions of: Well, well, you know, are you going to tap out of Enterprise Plus eventually? And we said, "You know, obviously, at some point, Enterprise Plus will tap out, but we, like, just like look at our history, we will probably have another plan." And then that spun into, "Well, what's in the other plan?" So we tried to then, you know, give some color. So, we're the only reason we've been talking about it as long as because the question's been happening as long.
So, so, we're not, you know, we're not off our timeline, is all I'd say, so and I only say that because, you know, if we had been, you know, we don't like to usually provide that much visibility, you know, multiple years out into something. But in this case, we were just responding to questions, and then we tried to better kind of capture the sort of explanation of it in a more tangible way, so continuing on that theme, what you could anticipate is Enterprise Plus has our most advanced security. It has, you know, the basics of our AI. It has our data governance and so on.
We can imagine another set of use cases on top of what we solve today that go deeper in business process automation, that, you know, probably AI is certainly tied to that. We acquired a company called Crooze earlier this year. What Crooze basically built out was, you know, if you're a Box customer and you store your files in Box, the way you find those files, by and large, is you go into a folder, you find the right folder, you click the folder, you see your files, or you can search and get to the same place.
What Crooze figured out was that there's a lot of use cases that don't make sense in sort of a folder paradigm. They make sense in finding your information based on, you know, most often metadata, but tied to a particular sort of, you know, part like business process. So when you look at contracts, you just as likely want to find all of your contracts that are up for renewal next month, as you do want to go to a folder called Contracts and then go and find the contracts by hand.
Mm-hmm.
Crooze built this technology that says, "Here's a dashboard that shows all of your contracts by status," and when you click it, it shows you all those contracts, and you see the actual information next to the contract name that is that metadata on the contract renewable date and the amount that the contract is. It doesn't look like a file anymore. It looks like a full contract and all the information around that. Crooze was an independent company that built this only for Box customers, so they were built on our APIs, and they basically proved that there's this massive white space of opportunity we were not getting into, which were these higher-end business processes for more kind of these automation workflows.
So, with Crooze, with the Alphamoon technology, which is kind of metadata extraction with more advanced AI capabilities, what I'll just kind of paint the picture of is that there's a next generation of business processes that we believe Box can go solve for customers, and we don't want to necessarily just pack all of that into Enterprise Plus because we think there's a high degree of value in that functionality, and it's already been proven by the customers that have bought into the Crooze technology previously.
Okay. No, that makes, that makes sense. Maybe shifting gears, I think on the last earnings call, I think we talked a little bit more around partners and global SIs...
Yeah.
... and kind of leveraging that community, and so, yeah, I guess why is now the right time to kind of...
Yeah.
... lean into that motion?
Actually, it's perfectly correlated to the last question. If you think about like, if we just imagine that there was a sort of, you know, pre-Intelligent Content Management, post-Intelligent Content Management version of Box, the pre-Intelligent Content Management version of Box, you know, a lot of our deployments are enabling employees to share and collaborate around files securely, you know, embed into Salesforce or Slack or other kind of end-user productivity tools.
That was the kind of common pattern, and unfortunately, there's not enough depth for SIs to go in for a lot of those kinds of deployments. You know, clearly there are some, because we do bigger deals, and those are more transformational, but there's a lot that are just; i t's easy enough for the Box Consulting team to deploy it, to do the change management, to roll it out for customers, and so it hasn't left as many dollars available for, you know, big SI projects.
As we go into this new, you know, era that we're in with Intelligent Content Management, and you really think about what are the business processes that a customer is trying to reinvent, their contracts process, their invoice process, their digital asset management, you know, process, their loan agreement process, their client onboarding process. It's a mix of AI and metadata and a workflow and a set of user interfaces around that plugged into an ERP system and a CRM system. You know, Box, our employees are gonna do very little of that change management and implementation.
There's a lot of systems integration work there. There's a lot of data migration work there. There's a lot of kind of plugging into different technologies, and that's what, obviously, SIs are very good at, and so you're gonna see us increasingly talk about our partnerships with SIs, you know, eventually building out even practice areas in many of these bigger SIs. That's a core focus of ours, and then they'll, you know, be a joint go-to-market partner as we kinda scale up with this.
Okay, that makes complete sense. We only have about a few minutes left, so if there are any last questions in the room, want to make sure we can get to those. I want to shift gears on the financial...
Sure.
... side right now. I think you laid out at the analyst day earlier this year, Box becoming a 10%-15% grower again, from, you know, I guess, mid-single digits today. I guess, what needs to happen in the market for Box to be able to accelerate back to that level? And, how should we think about the contributors to growth...
Yeah.
... to be able to make that happen?
Yeah, so I think first of all, I think there's a few different ways to, as a composite, to get there. So the good news is that we actually have multiple plays to run, but I'll give you a couple of the big macro kind of factors. You have one. You have a geo component, which is, you know, we're under-penetrated in Europe.
Mm-hmm.
We see a lot of opportunity in our European business, and a lot of upside there, as well as some kind of emerging, kind of, not in the classic, you know, kind of e-economy sense, but emerging markets for Box, the Australias and Canadas of the world. So you have some international markets that are mature from an IT standpoint, that we're under-penetrated relative to total account value. So you've got a good kind of geo mix with some upside there. Industries, we have a pretty good set of industries where there's a tremendous amount of upside.
Public sector, which breaks out between some of the work we're expanding in Fed, and some of the new work that has just an incredible amount of upside in state and local. You have life sciences and healthcare, both of which are industries where we do well, but we are smaller than we could be in terms of the impact. And then financial services, I think, is another kind of space with that story. So you have really strong industries in the U.S. and globally that we have just a ton of upside in relative to all of the business we could be doing.
And then from a pricing and product mix, you have a tailwind, you know, as obviously, assuming our execution plays out, of another tier of plan on top of Enterprise Plus. You have a platform and consumption model that we are continuing to invest much more deeply in, which is high volume use cases. You know, you're gonna pay more of a on a volume basis for. So, Box AI in our APIs, metadata extraction, our core APIs just for content experiences, and then kinda to-be-announced capabilities. So you have a good, you know, you have good volume business there.
And then finally, you have seat expansion, which is just driven by, you know, we need some stabilization, continued stabilization in the macro, but seat expansion coming from, I just need more of my employees to have access to Box. Things like Box Hubs really helps with that because Box Hubs only make sense based on the audience you share the hub with. So it's very much like the anti-personal, you know, kind of way of working with content. It's all about dissemination of content, you know, of your HR documents or your R&D, you know, specifications, or your product marketing materials, or your sales assets.
So by definition, one person creates a hub, or five people create a hub, but not, like, 100. But they have to then share that content out to could be thousands of people, so those would all be Box licenses. So I think we've got, you know, geos, we have industries, we have a pricing mix through platform volume, more seats, and higher-tier plans. And, you know, I think you need, you know, certainly need, you know, multiple of those to fire. But I think you don't need every single one of those to work to get to double-digit growth.
Okay, just last question. I think we're running up against time here. Just BoxWorks coming up in a couple months.
Yeah.
I guess what should we expect here?
Yeah, I think it would be, you know, some compressed version of this conversation on some of the future products.
Mm-hmm.
So think about, you know, you're gonna come to BoxWorks as a customer, and you're going to be left completely rethinking what you're doing with your content. And and just hopefully your mind is wandering on, "I didn't, I did not realize all of the value that was trapped inside of this data, and all of the things I can now transform from a business process standpoint." And so you know, in our best customer conversations and our executive briefings, customers are left just saying, "Okay, I'd like to automate this. I can go you know, kind of transform this process. I can go get data from this." That's what the conference is all about, and the product announcements to go enable that for customers.
Perfect. I think it's a good place to leave it. So, Aaron, thank you so much for being here...
Thank you. Yeah, thanks for having me.
... Thanks for being in the room.
Appreciate it.
Awesome.
Awesome. Take care.