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This statistic highlights the BOX’s Retention Rate Worldwide starting from the Q1 of 2016.
Box Inc. is a cloud management and file sharing service for businesses. The company uses a Software- as- a -Service (SaaS) cloud passed platform where users can collaborate on content both internally and with other external parties, applications, implement data protection, etc. Box Inc. is an American company founded in 2005 and based in California. Users can determine how their content is shared with others. They offer three types of accounts: Enterprise, Business, and Personal. A mobile version of the service is also available.
The platform allows users to view, share, and collaborate on content, across various file formats and media types. They also offer a free basic version for users to experience their platform and some of their services. Box simplifies work for leading organizations globally like AstraZeneca, General Electric, Morgan Stanley, etc. The main competitors of Box Inc. are Dropbox, AWS. Atlassian, Sharefile, Sugar Sync, etc.
Retention rate is the number of customers retained to the number of customers on the brink of leaving. The retention rate for Box Inc. has been reducing over the years.
In early 2016 the retention rate was at 123% but had reduced to about 117% by the end of the year and has been declining ever since then quarter on quarter.
The retention rate in the first quarter of 2017 was 116% which then dropped to 115% in the second quarter and then remained steady at 115% for the remaining quarters of 2017.
The retention rate dropped to 114% in the first quarter of 2018 and then continued to fall and went down to 113% in the second quarter, 112% in the third quarter and 110% in the fourth quarter.
This decline continued into 2019 and the rate fell down to 109% in the first quarter and 108% in the second quarter after which it stabilized at 108% for the remaining two quarters of 2019. The retention rate started to fall again in 2020 to 107% in the first quarter and is expected to go down to 106% in the second quarter and 105% by the third quarter of 2020.
The declining retention rate is a cause of major worry for Box Inc. The retention rate has fallen by almost 18% in the last five years. The company needs to find a solution to retain its customers. With innovative products and sustained marketing Box Inc. can hope to improve these numbers in the coming years.
Despite the falling retention rate Box Inc’s revenue has been increasing over the years. Their revenue in 2019 was $608.52 million which was a 20% increase from the previous year’s revenue of about $504.19 million. The revenue is expected to further increase in 2020 to around $700 million. The growth in revenue can offset the decline in retention rate, but the company needs to make sure that the decline in growth rate is less than the growth in revenue. Hopefully, Box is able to improve the rate in the coming years if not immediately as the company still has a lot of potentials to grow.
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