Box, Inc. (BOX) Earnings Call Transcript

[Audio Gap] This meeting is being recorded. Comprehensive product strategy briefing that we provided at our Financial Analyst Day in March, our product leadership and product innovation -- pace of innovation has continued. We're excited to have our CEO and Co-Founder, Aaron Levie, and our Chief Product Officer, Diego Dugatkin, here to provide an overview of today's exciting product announcements and take your questions. Please note, this presentation may contain forward-looking statements that involve risks, uncertainties and assumptions. Further information on these risks can be found in the documents that we file with the U.S. Securities and Exchange Commission. With that, I'd like to turn this call over to Aaron Levie, Box's CEO and Co-Founder.

Thanks, Cynthia, and thank you all for joining us today. We have had an incredible BoxWorks thus far, and it's just getting started. This is a 2-day virtual event, and we have thousands of customers from all around the world attending and tens of thousands of folks viewing all the various content. So we're really excited about the event. At Box, our mission is to power how the world works together. And at BoxWorks, we're going to be making a series of announcements around what the future looks like with our platform. In just a few moments, we're going to have Diego, as Cynthia mentioned, our Chief Product Officer, talk about some of the announcements that we made just this morning to all of our customers, but we have a ton more in store throughout the rest of the conference. So we started Box in 2005 with a simple mission. We wanted to make it easy to access and share and collaborate on any information from anywhere at any time. And we evolved that mission to really being about how the world works together and being able to power that for all of our customers. And during the pandemic in the past couple of years, this mission has become even more important to all of our customers globally and really ultimately drives the opportunity that we have going forward. Today, Box works with over 100,000 customers and across 67% of the Fortune 500. We're incredibly proud to be able to work with everything from fast-growing technology startups like Spotify or Airbnb all the way to some of the world's largest organizations like General Electric or IBM, AstraZeneca and many more that have adopted Box broadly throughout their organizations. What all of these companies have in common, whether in life sciences or the tech industry or manufacturing or consumer products is fundamentally work is changing in their organizations. And again, in the past couple of years, we've seen this change rapidly accelerate. The pandemic changed everything about what work looks like and where work is going to be going in the future. When we just compare and contrast how work used to happen with how it works today, almost everything is different. We're working from anywhere. So every enterprise we talk to wants to be able to access information from any time, anywhere, any location. They're no longer just working within the 4 walls of a single office building, but instead teams are distributed and dispersed across a variety of locations and geographies. That means that companies need to be able to get access to their most important information from anywhere. We're also no longer just working with a few people that surround us inside of our office building and a local team, but instead working as a network across boundaries to be able to move any business process and project forward. So we are working in a much more distributed fashion. Digital is now at the center of how we work. It used to be that a lot of our work was analog and then we digitized that work after the business process was accomplished. Well, today, that doesn't work anymore because as we've gone remote and as we've gotten distributed, digital is the way that we bind all of our distributed work together. So it's at the center of fundamentally of how we work. And you'll see this tie into a number of our product announcements that we made at BoxWorks today for all of our customers, where we're changing the way they work when digital is at the center of how they're doing everything. And as work has gone digital, it means we have more data than ever before. There's a massive abundance of information being created across any kind of device, any location. We have more content generated than ever before that companies have to be able to work with. And with all of this data, we need automation. We simply cannot throw humans just at these problems. We have to be able to scale our workflows, our business processes by leveraging automation. So you're going to see automation as a major theme both in our strategy today, but also in what we're going to be doubling down on going forward. And then finally, as we have more data, we're working in more locations, we're working across a broad network. We can no longer protect our information just by securing the perimeter of our organization. It doesn't work just to throw a firewall at this problem and assume that we're going to be able to protect our most valuable information. We now need to secure the flow of information as it's being accessed from anywhere in any location and in particular, as it's being shared and collaborated on by people outside of our enterprise. So when we think about how much work has changed from 3 years ago and before to today and going forward, everything is different. And at the center of this work is our content. It's our most important intellectual property and business information that we work with. Every single business runs on content, whether it's marketing agencies, or media companies that are producing critical intellectual property or consumer product companies that are designing a brand-new product and bringing that to life through CAD designs and prototype files and brainstorms, or if it's through life sciences organizations that have to do mission-critical research and development and be able to collaborate across a variety of partners all around the world. Content is at the center and heart of how we work. And every single line of business runs on content. Again, we talked about product development being in CAD designs, finance teams run on contracts and invoices and financial records and data and models that they have to be able to build out. Operations team need supply chain data and be able to work across a global ecosystem of partners. Sales teams are working with critical digital assets and contracts that they have to work with customers on or sales presentations to be able to close the next big deal. HR teams are dealing with realms of data when it comes to HR records, contracts and other employee information. And marketing teams are generating a wealth of digital asset content that needs to be secured, protected and collaborated around. So in every vertical and in every line of business, businesses today are running on content. And yet, when we go to a lot of organizations, when we first start our conversation with an enterprise, oftentimes, they're not managing that content securely or strategically. They have content fragmented across a wide variety of technologies and systems. There's content in legacy document management or enterprise content management technologies. There's content inside of network file shares or behind the firewall. There's content in shadow IT tools that have been brought in by end user employees or there's content that's fragmented across workflow and point solutions that end users or lines of business have brought in. The challenge with this content fragmentation is that it means that we have massive security risks and compliance risks. Our content is now in too many different silos, so we can't manage it or centralize it or understand who has access to what that creates major risks around security, especially in an age where we're seeing increased ransomware attacks and internal and external threats. This fragmentation also leads to slower productivity. If an employee or a team or department doesn't know what content to work on because they don't know what system is the source of truth or what's the authoritative copy of a marketing asset or a project plan that slows down productivity massively. And finally, it means that enterprises are dealing with an increase of cost and complexity by managing so many other legacy systems. They have to have all of the technology that gets implemented and then integrated and then the human and operational time that goes into working with those systems. And especially in this economic environment, it is untenable to have content fragmented across all of these redundant silos that costs a tremendous amount of money to maintain and operate. And so our vision is to really end this problem. We are building out the singular Content Cloud to power the full life cycle of content in a single cloud platform. And as we've talked about in the past and we've been showing off to our customers, that platform is all about powering the full end-to-end life cycle. Everything from the moment that content gets ingested into the cloud to when that data needs to be secured and protected from ransomware attacks or other threats, to being able to classify that content, so you know what you're working with to collaborating in real time on nearly every file type in the cloud as well as new file types that didn't exist just a couple of years ago, as you'll see with products like Box Canvas and Box Notes or being able to drive automated workflows. So anything from an invoice process to a contract life cycle process, getting an e-signature at the end of a workflow that deals with mission-critical contracts, being able to publish content in teams and departments and throughout the enterprise or get rich insights in analytics so you know exactly what's happening to your content, who it's being shared with, who's accessed it, how popular is certain content so you can make key business decisions from that data. And then finally, being able to retain that content at the very end of the process. That is the full life cycle of content that our customers are dealing with, and we are building out the leading platform to have an integrated solution with all of these capabilities. So customers don't have to go out and buy separate technologies from separate vendors and integrate these tools themselves. They get a single platform that powers that full life cycle. And most importantly, that platform then extends into every other application that our customers are working with. One thing that I'm incredibly proud of is the openness and interoperability of the Box Platform and one great way of identifying and highlighting how significant this is for our strategy. Throughout BoxWorks in CIOWorks, we had Thomas Kurian, the CEO of Google Cloud; Arvind from IBM; Eric from Zoom; Yamini from HubSpot; Jeetu who runs Webex at Cisco and many other partners, Kirk from Microsoft showing how well Box is integrated across all of the technology that they are managing and running for their customers. So you can see that we live and breathe openness and operability and interoperability across the entire stack of technology that our customers are working with. What you're going to see from us going forward is both a continued doubling down in that full life cycle that extends the full value of content in an enterprise as well as ensuring we've got a powerful open platform that integrates into our customers' most important software, whether that's Microsoft Teams, Microsoft Office or other applications they've chosen like Slack or Salesforce or ServiceNow, Webex, Zoom, IBM technology, Google Workspace and many other applications. And increasingly, importantly, for our customers, the ability to take the value from our Box Platform and extend it into their own applications. So being able to develop custom apps built on our APIs as well has become increasingly important. So at BoxWorks, we are super excited to unveil a whole bunch of new innovation that our customers have both been asking for as well as things that are going to continue to leapfrog the rest of the market. And I'm excited to introduce Diego, who's going to walk through some of the updates and announcements that we made earlier today to our customers. Diego, over to you.

Hello, everyone. We are just making an adjustment to some audio settles. I'll be with you in a moment.

Apologies, we're having a few microphone issues. We should be back shortly. Thank you.

Okay. Can you hear me okay? All right. Well, sorry, everyone, I think there was a microphone problem, but I want to kind of start from the top so thanking Aaron for his very good introduction on our business. And now I'm super excited to now move to describe all the product road map that we want to share with our customers and for you to basically see what's expected in the near term. So we are going to cover all the aspects of the Content Cloud where enterprises get frictionless security and compliance across all their content, seamless collaboration and workflow. And basically across remote hybrid and in-person teams, as Aaron described earlier, so we can work from anywhere and in any of the scenarios and also the integrations with all the different apps that are so prevalent now. And so [indiscernible] that we are consolidating but also allowing to work basically from anywhere no matter where the content was created. So moving forward, we're going to basically start with a road map that is centered around these key differentiators where we will start first with the collaboration and workflow section. So our goal at Box is to empower teams with the tools to collaborate securely and efficiently, no matter where they might be in the world. When it comes to how people work around the world, there is now a new normal. And while hybrid work promises great enhancements and extraordinary flexibility to get work done, how and we're most productive. It also presents a challenge where we want to make sure that we can engage dispersed teams while limiting the online burnout and also provide ways to innovate and collaborate visually. Also managing the complexity and the risks and cost of apps and the AppsPro that basically can read from fragmented technology tools to security and compliance issues. So regardless of an organization size, it needs to be more flexible and there are digital ways of working that require this innovation. So enterprises now need a collaboration strategy that puts the right tools into the hands of your people and empowers [ the team ] and the way they collaborate seamlessly. So there's innovation around the information that drives the organization. So Box is rapidly evolving to be both a catalyst and an enabler for that change. It's been part of our vision from the beginning, and this year, we are focused on delivering modern collaboration experiences that inspire users to get work done however and wherever they want with new higher value functionality to help your users complete and any user complete more workloads directly in Box. So this week, we're announcing a flexible set of Box native collaboration tools, Box Canvas, Box Notes and Content Insights. With these tools, users can push the boundaries of how to easily collaborate on all the amazing things an organization does. They will be able to host interactive workshops, create detailed visual documentation or curate published content, and they will be able to do that right within Box where the content lives. So to the point that Aaron made earlier about keeping content secure, reducing the point of entry for potential attacks and optimizing productivity. This integration of collaboration is essential for that as well. Additionally, as they begin to share content internally or externally, you will be able to get insights on how it is performing. So the Content Insights of tracking how the content is being used for the sales, for marketing, for training, for all kinds of different purposes. We are extending the platform for tracking the -- and analyzing the performance of the content itself. And of course, with this tool set comes everything associated with Box, security, compliance, workload automation, integration and with the GoTo apps and more. So let's drive into a quick dive now into a few of these new capabilities. So with all new Box Notes, we give users a secure real-time experience for quick and seamless text-based collaboration where Notes can also help teams tackle more extensive documentation, project management and development type of tasks. The entire editing and collaboration engine has been updated, and we began rolling this out to customers in mid-August, continued through mid-October. So we're mostly now reaching the 100% rollout of that product and the full innovation that we put into Notes. Now hybrid and remote teams need tools that go beyond traditional communication styles, beyond text and images. So we're very, very excited now to announce again and launch Box Canvas, our new visual collaboration and online whiteboarding tool. Canvas will be rolling out to customers in a public beta in mid-November with the emergence of the hybrid workspace, where there's a lot of digital content being shared and distributed. Box's new Content Insights feature releasing in the fall will also allow users to understand the content impact, as I was mentioning earlier, to see how the content is being consumed, how often, how much, which days, by whom and at the same time of whomever else is consuming the content where the analytics and insights are right at your fingertips whenever your team needs them so you can make stronger content decisions based on the insights and not guesswork. So moving over to the workflow and Box Sign products, a critical part to empowering customers to work together from anywhere is the ability to transact digitally. So last year, and in general, we've been seeing through the pandemic, the adoption of more and more digital means to solve scenarios that used to be on paper. For that reason, basically, we rolled out Box Sign globally to deliver both unlimited electronic signatures in the Content Cloud and e-signature extensibility via APIs and integrations. As you saw in the first half of the year, the Sign team has been on overdrive delivering several critical features, including batch send and ready sign links. We're continuing that momentum, focusing on enhancing Box Sign to help address more complex and higher volume use cases unlocking more content and cost-saving opportunities also helping you streamline e-sign workloads by making sign more extensible both via third-party integrations as well as APIs. And in addition to that, we are enabling enterprises to reduce complexity to deploy e-sign and content workloads at scale and in the content cloud. So now let's take a look at some of the key features coming soon on Box Sign. With custom branding, we're enabling customers to drive brand awareness and offer their clients partners and employees an enhanced on-brand signing experience. With multi-doc packages and signor attachments, we are basically unlocking sophisticated use cases that allow employee and client onboarding, contract management applications and more. In parallel, we've been working on extending the ecosystem of Box Sign integrations. In addition to our market integration with Salesforce I'm excited to share that we are announcing Box Sign integrations in several areas, including contract life cycle management, enterprise resource planning, robotic process automation, procurement operations, forms and more. This includes partner integrations with UiPath, Appian, Crooze, VersaFile, Certa, [ Jotform ] and others. Additionally, we have integrated Box with Signix, a leading in eNotary vendor that will help our customers supplement e-signatures with eNotary services. And finally, e-signature can be just a one step of a larger business process where we are accelerating the investment into tighter integrations across the Content Cloud. Integrating Sign with Shield and Governance enables us to deliver differentiated solutions and workloads with built-in security and content retention. And we are continuing to build more and more capabilities into Box Relay that will provide the flexibility to deploy automated content workflows at scale. So now if we move to the security and compliance highlights, we essentially see 3 challenges when it comes to cybersecurity. First, the ensuring of a zero-trust access model; second, the preventing of data leakage; and third, the protecting of the organization against threats. Good news is that Box is uniquely positioned to help companies successfully navigate these challenges. So let's start with zero-trust. Zero-trust access is becoming ever more important because 61% of breaches last year leveraged credentials. That's why we're focused on providing the most robust identity and access management capabilities. Soon will be adding e-mail-based MFA and backup codes as an authentication option that we are going to be bolstering zero-trust access for Box admins. Enterprises also have the ability to terminate and basically have termination of user sessions with programmatic self-service remediation via the API and leverage Box Shield detection rules to protect against account takeover, threats, moving us towards adaptive access. And now even better, Box is also adding group-based Device Trust, where we have policies to give us the granular control that our customers have been asking for. Lastly, we're also extending our security integrations in the Box Trust Partner Program with partners that are in the EDR and IAM space, where our customers will have better protection through real-time sharing and [ with signals ] dynamically enforcing zero-trust access. As you know, the average cost for data breaches has reached an all-time high of [ $4.35 ] million per case, preventing data leakage of sensitive content becoming even more important than ever. So I'm excited to announce ethical walls, a new feature in the Box Shield portfolio to prevent the exchange of information between different user groups within an organization internally that also could lead to conflicts of interest. So this information barrier can be used to safeguarding certain information, especially helpful for our financial services customers. That is in beta now and is in GA coming very soon. Now we'll also be expanding our document watermarking capabilities, which is especially important for the media, retail and entertainment customers. We're adding support for video files as they are one of the fastest-growing content types on box, growing about 46% year-over-year to more than 1 billion videos. Last year, we introduced also Malware Deep Scan in Box Shield, which is based on deep learning malware scanning technology that helps basically security teams identify emerging and unknown malware types. And today, we're excited to announce that we've added coverage for new file types, including Microsoft Office. We also fine-tuned our detection model to lower false positives and we are improving alert event descriptions. So SecOps teams can better respond to incidents. All of this is in GA now. So next one is one of my personal favorite topics, Ransomware. So as you know, Ransomware has been basically in record highs now where researchers have recorded 935% year-over-year increase in double extortion Ransomware attacks. To help counter that, we are the first and -- basically first going to introduce a self-service content recovery tool for Box admins to augment existing Ransomware recovery support for these processes. Box admins will be able to modestly restore impacted files to a less known good state in a matter of minutes, bringing a recovery operation that normally takes weeks down to 15 minutes. And lastly, we'll continue to enhance and continue to invest and extend our ML-based ransomware detection and impact containment with our zero-trust security controls. As you know, security is only one of the sides of this equation, content governance and compliance being the other. Our customers tend to see 2 key challenges in this area. How do you manage content through its life cycle and how to comply with industry and regulatory compliance. We're experiencing exponential growth of data, especially with hybrid work. So that's why these areas are essential in conjunction with security. So this is why this year, we made substantial improvements to retention in Box Governance. We released modifiable retention to provide customers the flexibility that they ask for and now they can easily update retention policies as business needs evolve. So going forward, we'll continue to make enhancements that include making it easier to export content under legal hold, adding disposition and actions that accelerated disposition through using trash and also having lastly, giving you basically and our customers, the reporting and disposition insights that you were asking for. The second challenge we hear is the growing complexity of the industry and the regulatory landscape. That is why earlier this year, we basically released GxP Sandbox. Basically, the GxP Sandbox testing for our life sciences customers is essential where we expanded our global footprint with a new Box Zone in France. With that, we actually are helping organizations address the data residency needs and basically in-region for content storage. And for the U.S. public sector, we also have received StateRAMP Moderate Authorization and now we have Box for GovSack integration. I'm also excited to announce that we have FedRAMP High with authorization to operate the ATO from the VA. And with this authorization, which includes an independent assessment for over 421 security controls. It allows the VA to expand the use of Box for controlled and classified information. These items are yet another testament to Box's cybersecurity posture. So let me switch gears a little bit and talk about our admin improvements, where we are going to support Box admins with added controls, reporting and also insights that they need to use to excel in the orchestration of their environment. We're focused on expanding rich insights to give customers quick and actionable information about their Box account. Rich insights with delivering analytics, visualization and calls-to-action that give admins transparency into what's going on across their organization with the ability to easily take action on any abnormal activities or any strange elements that they find in their network. So now moving to the third pillar of the differentiation that I talked about and that Aaron also mentioned at the beginning, we have platforms and integrations. We know how important it is to users to have the choice of technology that they use and what they work with. So we're making it easier than ever for customers to seamlessly integrate with over 1,500 integrations. Box without sacrificing any security or manageability of their content has been able to integrate with all of these different applications while also adding elements to our portfolio, maintaining the neutrality that Aaron spoke about earlier. Starting with the new Box App Center. The all new fully renovated and released recently, admins can install any application for their organization needs and users can easily see which tools they have available to them previously approved and selected by the administrators. So this empowers users to work how they want with the visibility and access to their network and everything we offer of the ecosystem of partners that we have with this 1,500 integrations. Now another very important integration we have that is worth highlighting directly is our Box for Salesforce integration that helps customers access and manage their sales content directly of what they have in Box without leaving their CRM. Their users can request e-signatures with Box Sign without our leading Salesforce. And coming soon, admins would be able to enable a custom folder structure in Box mapped to Salesforce objects and records directly. With that, they will also be able to search Box files across Salesforce altogether. So in addition, we have continued advances with our major partnerships as well. So I mentioned all the different key participants that we had. Microsoft, for example, has been a key partner with exciting announcements and major enhancements that depend how we access Box files within teams and how our customers can also do co-authoring on office desktop files with edit, AutoSave to Box. Another important partnership is with Zoom, where we have new capabilities to save -- select meetings directly and those Zooming recordings directly put into Box. With Slack, we have the ability to set Box as the custom file store for Slack instance. So if one of these integrations is quite what your customers need, Box Platform allows them to also take advantage of our APIs and developer tools that can extend Box to meet any scenario. So our concept is you can integrate with any of these -- and use any of these 1,500 integrations. But if you want to use the APIs, the functionality is available through our SDKs for you or your partnering software developers or other suppliers of software to integrate directly with box functionality. So our platform is focused on continuing to simplify the developer and admin experience, which basically includes the following. UI elements. So the UI basically is extended to developers. So the Box UI features are all available to basically provide customer applications and custom applications and portals directly done by third parties, the CLI automation library. So admins can automate repeatable tasks like user provisioning and zone assignments for users, then the custom app insights so developers can define and view the key information about the apps. So basically, they -- all the apps they create in their enterprise, and they are all basically available from a single place. Then there is [ SampleApp ] that -- which basically is sample code, very common for basically simple common applications and use cases for development to take that from that library an accelerant for development. And then the enhanced platform reporting that allows for better API usage reporting and higher accuracy to help customers understand the Box platform usage. So all of this is part of this continuous effort for basically going throughout the year to accelerate the time to value with Box Platform. Well, thanks for the time I went through many different components to basically represent the different areas of all the things we're launching this year. So we are hyper-focused on building Box to be the most powerful and robust content services platform in the market across collaboration and workflow, security and compliance and platform and integrations. So now Aaron and I will be happy to take your questions. So let me now turn the presentation back to Cynthia for Q&A.

Great. Thanks so much, Diego. Before we open it up to Q&A, just a reminder, please limit your questions to our product strategy and announcements. We are not providing any financial updates or commentary on the quarter during this call. [Operator Instructions] Our first question is coming from Josh Baer at Morgan Stanley. Please unmute Josh, and go ahead and ask your question.

Great. Question for Aaron. As you continue to innovate and roll out all these new features across collaboration, workflow, security, governance, how should we think about the balance between addressing a larger TAM and maybe benefiting from consolidating some of that IT spend in different areas versus running into new or more competitors that play in some of these markets?

Yes, great question. We spend a lot of our time thinking about that very dynamic of adjacent categories, starting with content at the center, how far do we want to expand into adjacencies and making sure that we're doing -- we're driving innovation in areas where we have a right to play and a right to win in that market. Versus areas where actually we'd be better off partnering, driving deeper integration with our partners in those use cases. So we spend all of our time thinking about that dynamic as we look at our road map. Everything you saw in the presentation today throughout BoxWorks and from Diego just now, we believe we have a very strong position to win in these markets. Whether that's advancing workflow, whether that's a lot of the core use cases around e-signature. Canvas is really just a natural extension of how you collaborate on content in the cloud. So in the landscape that you've currently seen, we believe that we can be a very strong player across these use cases for Box customers. But we do often have debates internally and we decide, you know what, we think a particular space actually makes more sense to partner in, and we'd rather integrate with the leading players in that space. But for the most part, if it has to do with content, whether it's securing that content, automating workflows around that content, collaborating around that content or at the end of the life cycle, retaining, governing, driving data privacy or discovery on that content, we believe that we should have really, really world-class first-party features in those areas.

Maybe one quick thing to add. One element that sometimes is a big differentiator is that some point solutions that don't have a platform basically present an opportunity for us to help the customer have that result in a platform way. So having electronic signature stand-alone is not as powerful, but having them integrate with the security features that we have, the ability to automate, the ability to be compliant and the ability to basically be close to where the content is, it makes it more powerful. And the same thing about whiteboard type of collaboration and so on. So anything that we add tends to have that extra synergy of the integration with the platform that [indiscernible] solutions cannot do. That extends the TAM to things that others cannot perhaps capture.

Great. Thanks. Thank you Josh. We have a question from Jason Ader, William Blair. And the question is, which of the new product announcements has the potential to be the most impactful?

This is the hardest question to answer, which child you like the most. I would say the most important aspect of the new elements that we're launching is the integration to that platform that we have. The fact that they are not stand-alone, the fact that they actually work together. So we're always focused on the immediate next thing to deliver, but we maintain a significant level of focus on everything we already launched. We're not going to stop innovating and adding features to each one of them because we truly love each one of them. So all of these different children that we are basically giving birth to where we basically have Sign. Sign is now still having new features while we are launching Canvas. And we're going to continue to innovate also on our infrastructure as we continue to deploy globally and keep having zones in different places and the addition to ML and AI to continue to advance the way we operate internally and build the applications. So to me, the most magnificent part is that it's actually all in one place, all in one platform, all integrated, all secured and compliant and governable like nobody else does, while maintaining neutrality, which is also quite extraordinary, meaning other companies go with point solutions or platforms that are closed and our motto is stay actually connected, work with all of them.

Yes. And I would just -- I would underscore that it's very hard to pick favorites because they represent different parts of the value proposition, all with integration being the kind of core ultimate value we offer. So some customers we talk to get super excited about Canvas and being able to change how they do collaboration and brainstorms with Box. A lot of customers get really excited about our e-sign features because maybe they've been waiting for a couple of enhancements for them to be able to roll out more broadly. CISO is very excited for a lot of the innovation we're doing in security. So very hard to pick a favorite. It's really the value of the integration. I think the only other thing that I would underscore is because of the breadth of innovation you're seeing, you can tell that we're driving a high degree of just innovation velocity, which is super important to our customers.

Our next question is coming from Erik Suppiger with JMP. Erik, please unmute.

Curious, how do you think this positions you relative to Microsoft Teams, where are you seeing the customers most open to adopting you in place of Microsoft teams and how -- can you talk a little bit about how you think that road is going to evolve?

Sure. Yes, I'll maybe just kick it off with our high-level Microsoft Philosophy and Diego can build from here. But overall, and you'll see this at BoxWorks directly. We had Kirk who is the COO of basically all of the kind of end-user apps on the Office 365 side at Microsoft. And he further endorsed, I think, and underscored our partnership. So first and foremost, we want to integrate with Microsoft Teams. Microsoft Teams is used for video collaboration, real-time communication and chat application development, those are not spaces that we focus on. We only care about content. So we integrate quite nicely and quite complementarily into the Microsoft Teams environment. Where we differentiate heavily from Microsoft broadly is unlike the Microsoft stack, which has OneDrive, SharePoint teams and a variety of other ways where you can manage or work with data. We provide a single platform that is integrated across the complete life cycle of content. So storage, sharing, security, governance, collaboration, workflow automation, e-signature, that entire life cycle in a single platform. So for customers that really, really have mission-critical workflows around content, a bank that has to onboard clients, a life sciences company that has to do clinical drug discovery, a media company that is working with a ton of digital assets and media content. This is the lifeblood of those organizations. So to them, they don't want to fragment their data across the different platforms. They want to make sure they have a single platform that's secure, that's compliant, that's protected and integrated across Microsoft Teams, Salesforce, Slack, ServiceNow, maybe in some cases, competing companies that they want to make sure they have interoperability with. That's how we end up being very, very differentiated across the Microsoft but even broader competitive landscape.

Are you typically deployed alongside with Teams?

Yes. So in a Microsoft Team's organization, we would be deployed along with teams, but we also have a lot of customers that use Slack and Zoom instead of Microsoft Teams. So I would say Teams is just one of the many applications that our customers are rolling out. It's obviously an incredibly popular and dominant one in the broad collaboration space, and yes, we do jointly deploy with Microsoft Teams in those Microsoft environments for sure.