Box, Inc. (BOX) Earnings Call Transcript & Summary

Welcome, everybody, to the afternoon of Day 2 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 the past quarter, and then we'll kick it off from there.

Yes. 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 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 effectively been the business for the past kind of 1.5 decades, 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 had this 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 has some information in it, or you have to go and read [indiscernible] something or you have to share it with a client. But what if there was really 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 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 a nut on this idea of what 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, 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 you 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 and on-premise 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, a great intro. We do want to make this interactive. So if there are questions in the room, we will make sure to get to those. But before doing that, I do want to ask a little bit about the macro. I guess maybe what was different this quarter? I think you had pretty good strong execution. RPO growth was solid. 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?

Yes. So on the macro front, I would largely kind of say that things are more kind of pretty consistent with the past kind of 1 to 2 quarters. So nothing kind of dramatically improved, but also nothing that's sort of worse. We're still seeing some pressure in our SMB in 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 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 -- which is distinct from being dramatically improved, but stable at the kind of rates that we've seen in the past couple of quarters. And so a lot of just, I think, very strong execution in the quarter. A lot of excitement and energy around Box AI, which is only -- which you can only get access to an Enterprise Plus, so that's our highest tier kind of enterprise addition that has all of our functionality in it. So we've seen a lot of customers that maybe we had already tried to upsell to Enterprise Plus in the past with Box Shield, or advance e-sign functionality and maybe, 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, we have about a little over 40% of our revenue base is not in an Enterprise Plus or kind of a multiproduct suite tier. And so with this incredible base of 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 is 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?

Yes. So we made a very key decision early on in our AI evolution, which was we're going to 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 teach 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 -- at the time it was 2023. But if we were to start a Box in 2024 now, like if we were like going through Y Combinator and we were starting the company, we would not be like, okay, there's 2 versions of Box. There's like the basic version of Box and 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 moves you a little bit to step back and say, 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, maybe each category was 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 to 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 maybe -- this is not kind of 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 or 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 in Enterprise Plus and it will 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 going to 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 1 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 so we have some features that are going to 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 going to be paying for value propositions, just as they always have in software. And so the value propositions that we can monetize are going to be ones that can be labor augmentation or save customers time and money. And those will be the things that you see us monetize over time. Metadata extraction is 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 we're -- 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 the workflows, kind of what's the customer feedback been for Box' ability to execute on that versus maybe what people were doing before?

So I guess I would more start like most people -- we're in an interesting category, where, if I had to -- if you kind of stack ring 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 going to look at all software categories, and we just have like a category map of technology and you have like ERP and you had CRM and you had HRIS and you had ITSM, and you had all these categories, I would argue very 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, 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 want to take that information and you want to structure it, you're going to have a human go and do that. They're going to read through the document, they're going to pull out the data. Maybe some very sophisticated companies bought RPA systems or IDP technology to go do that, but for the most part, those technologies are underpenetrated relative to 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. So if I think about all those categories, which category transforms the most because of AI or, again, which categories transform the most? Content would be one of those top categories, right? Like you're not going to fundamentally change the data that comes in or out of an ERP system as a result of AI. Things will get better for sure. But like it doesn't completely transform how we think about closing the books at the end of the 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 can I use content to deliver better products to the market. These are the 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.

So with this in mind, to your point, there are a lot of on-prem ECM systems out there. Are customers at the point where they are more willing to put their content and move that to the cloud? Or maybe where are we kind of on that journey to SaaS?

Yes. 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-premise document management system or a network file share system or storage technology, we want to help accelerate that move to the cloud. You're going to get better security, you're going to get better workflow, you're going to get a better user experience. It's going to plug into all of your software. And now with AI, you're going to be able to bring the full power of AI to all of the data. And that's just something that on-prem vendors, 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 like pipeline builds at this point? Like are you seeing...

We're seeing in deals that are closed. We're 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 kind of traditional ECM systems moving to the cloud.

Great to hear. I do want to 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 want to ask on, since you have been investing so much in AI, like what does the future road map look like? What is the next kind of Box experience look like for the common customer 2 years from now?

Yes. 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 and 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 can create effectively an agent to go and do that work for you. So I have a legal review process where a document -- a contract comes in. And every single time you need to figure out what are the riskiest clauses that violate our -- the things that we can sign up for. So what if that contract comes in and instantly it spits out an answer to hear all of the things that you can't sign up for in this contract, or hear are all the conditions that don't meet your normal -- your standard master services 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 sort of find those issues in your documents coming in. So the future is being able to have AI agents that can -- either you can basically tell to do work for you, 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 that said -- 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 that particular example, you would be able to literally create -- we don't have all of the things announced yet, but you'd be able to in our future state, create an agent that does that in probably 5 minutes. And so in 5 minutes, you could create an autonomous agent that could go do 3 hours of work 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 10 seconds. So that's the kind of compression that we're seeing. And it's the kind of interesting -- just brand new ideas that are coming out of the woodwork from customers. Here in New York, I met a number of our financial services clients yesterday and at our customer dinner as well that we brought them all together. And the conversation was 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 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. 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 these 2 documents together. And this is 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 have AI agents that you can kind of teach what that workflow is and then put that workflow in a -- put that particular execution in a broader workflow, and we are building the kinds of tools to enable that.

Okay. And so the future vision you're thinking about for Box, like -- it seems pretty exciting and pretty interesting. I guess what do you think of Box' right to win for capturing that kind of a use case versus some of the other AI solutions or platforms that are out there?

Yes. I think right to win is a really interesting way to think about in this environment right now, because you have a lot of companies trying different -- 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 life. So anything where you are like, I mean, I have like these a million documents and we add another 10,000 every week, client statements, loan processes contracts, we're like -- we're just a natural platform for. 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, 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 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 18 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 18 years of infrastructure that lets them do document-centric use cases. 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 experience as an agents lining 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 is the 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, sort of we just saw it happen. At the ServiceNow Knowledge Conference in May, maybe time frame, they did a demo on stage where Now Assist, which is their AI agent, pulls a document from Box to answer your 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' 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.

It's a prediction, I think we can fulfill it, yes.

Awesome. Great. Because you are doing, 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 or try to partner on that?

Yes. 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 kind of core machine learning infrastructure and distributed systems infrastructure, and connecting to external systems because our prior AI endeavors involves 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, then go out and do an acquisition. So we built the core kind of foundational infrastructure using our team. And so that's an example of a net new kind of relatively disruptive innovation, but where our team is 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 to $2 billion called Intelligent Document Processing or IDP. And there's probably 30 companies in this space in different kind of configurations. And 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, because you need to have a queue of all the documents you're working through, you need to have air handling, you 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 we can go and study the space really deeply, but we'd be like moving teams over. Nobody has 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 were built out of Poland, where we already have a large engineering effort. And so we found this company. It was like exactly down the -- straight down the middle of our target zone of exactly how we would want to build this product. And we said, well, it would dramatically derisk our ability to go build this feature if this team was just -- they were just Box employees and all we ask them to do is just go build exactly what you just built, but now within the Box 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, new skill set where we can accelerate our product road map in a meaningful way, we're very -- we will always lean into acquisition in that sense and -- in those areas. And so that's kind of hovered at maybe 2 to 3 a year for the past kind of 3 or 4 years.

All right. All that makes sense. I'm going to pause here. I want to touch a little bit on go-to-market, but I want to see if there's any questions in the room before doing that. All right. So maybe going to -- I think we've already talked a little bit about the Suite strategy and how well that's moving. I think it's around 60-ish percent of revenue today is on Suites customers.

57%, 58%, yes.

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?

Yes. I always forget what like Dylan will say to this. So if we're in -- if you separate us, we may have different numbers. But I think what we've called out is somewhere between the kind of 80% to 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 what does the first 57% to 58% look like versus the total base, and we think there's at least another 20% to 30% to go of customers that could buy into Enterprise Plus. So the drivers of that now, obviously, AI is the newest catalyst. We're only, shoot, 4 months, 5 months into it being even GA. So it's already kind of providing a little bit of a tailwind on the ePlus 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, for the most part, the Enterprise Plus cohort will be, by default, probably the most natural is upgrading 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 eventual tailwind as we have another product plan out there that would be one of these multiproduct plans.

Okay. I think we've been talking about, I guess, for lack of a better term, Enterprise Plus, plus now 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, it has been over a year. I guess what's kind of been the roadblocks to actually driving that over the finish line?

Yes. I do want to be very precise, and Cynthia can help me if I'm wrong, but I think that Wall Street has been talking about for over a year. I don't believe that we have -- what was the first thing 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? Yes, but like we didn't like introduce the concept. Did we? I doubt we did.

You can [indiscernible].

Okay. Okay, fine. Well, what was happening was we started getting questions of, well, are you going to tap out of Enterprise Plus eventually? And we said, obviously, at some point, Enterprise Plus we'll tap out, but we -- just like look at our history, we will probably have another plan. And then that spun into what was in the other plan. So we tried to then give some color. So we are -- the only reason we've been talking about it as long is because the question has been happening as long. So it's -- we're not off our time line, is all I'd say. So -- and I only say that because if we have been -- we don't like to usually provide that much visibility 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 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 probably AI is certainly tied to that. We acquired a company called Cruise early this year. What cruise basically built out was, if you're a Box customer and you store your files in Box, the way you find those files, by and large, as 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 Cruise 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, most often, metadata, but tied to a particular sort of 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. So Cruise 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. And so it doesn't look like a file anymore, it looks like a full contract and all the information around that. So Cruise was an independent company that built this only for Box customers. So they were built on our APIs. And they basically prove 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 Cruise, 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 Cruise technology previously.

Okay. No that makes sense. Maybe shifting gears, I think on the last earnings call, I think you talked a little bit more around partners and global SIs, and kind of leveraging that community. And so, yes, I guess, why is now the right time to kind of lean into that motion?

So actually, it's perfectly correlated to the last question. So if you think about -- like if we just imagine that there was a sort of pre-intelligent content management, post-intelligent content management version of Box. The pre-intelligent content management version of Box, a lot of our deployments are enabling employees to share and collaborate around files securely, embed in the 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. Clearly, there are some, because we do bigger deals, and those are more transformational. But there's a lot that are just -- it'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 big SI projects. As we go into this new 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 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. Box -- our employees are going to 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 going to see us increasingly talk about our partnerships with SIs, eventually building out even practice areas in many of these bigger SIs, that's a core focus of ours. And then they'll be a joint go-to-market partner as we kind of 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, I want to make sure we can get to those. I want to shift gears on the financial side right now. I think you laid out at the Analyst Day earlier this year, Box becoming a 10% to 15% grower again from, 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 to be able to make that happen?

Yes. So I think -- so first of all, I think there's a few different ways 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 we are underpenetrated in Europe. 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 kind of 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 were underpenetrated 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 -- incredible amount of upside in state and local. You have life sciences and health care, 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 for 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 -- 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're going to pay more on a volume basis for us. So Box AI and our APIs metadata extraction, our core APIs just for content experiences and then kind of to be announced capabilities. So if you have a good volume business there. And then finally, you have seat expansion, which is just driven by -- 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 makes sense based on the audience you share the hub with, so it's very much like the anti-personal kind of way of working with content. It's all about dissemination of content of your HR documents or your R&D specifications or your product marketing materials or your sales assets. So by definition, one person creates a hub or 5 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 geos, we have industries, we have a pricing mix through platform volume, more seats and higher-tier plans. And I think you need to -- certainly we need 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 out of time here. Just BoxWorks coming up in a couple of months. I guess what should we expect here?

Yes. I think it would be some compressed version of this conversation on some of the future products. So think about you're going to come to BoxWorks as a customer and you're going to be left completely rethinking what you're doing with your content. And just hopefully, your mind is wondering on -- I did not realize all of the value that was trapped inside of this data and all of the things that I now can transform from a business process standpoint. And so in our best customer conversations and our executive briefings, customers are left just saying, "Okay, I'd like to automate this. I can go kind of transform this process. I can go get data from this." Well, that's what the conference is all about and the product announcements to go and enable that for customers.

Perfect. I think we'll -- i think it's a good place to leave it. So Aaron, thank you so much for being here. And thank you, everybody, in the room.

Thank you. Yes, thanks for having me. Appreciate it.

Awesome.

Awesome. Take care.