Boxed, Inc. Announces Filing of Super 8-K in Connection with the Completion of Its Business Combination with Seven Oaks Acquisition Corp.

Rhea-AI Summary

Boxed, Inc. (NYSE: BOXD, BOXD WS) announced the completion of its business combination with Seven Oaks Acquisition Corp, as disclosed in its Super 8-K filing. Key financial highlights include a 20% year-over-year increase in net revenue to $49.0 million for Q3 2021, driven by $10.8 million from Software and Services. The gross margin rose to 25.8%, boosted by higher-margin revenue. Additionally, Boxed raised approximately $198 million on December 8, 2021, to support growth initiatives. The recent acquisition of MaxDelivery is set to enhance Boxed's presence in the fast-grocery delivery market.

Positive

• Net revenue increased 20% year-over-year to $49.0 million in Q3 2021.
• Gross margin improved to 25.8%, gaining 890 basis points from Q3 2020.
• Raised approximately $198 million in cash proceeds to invest in growth initiatives.
• Acquisition of MaxDelivery enhances capabilities in fast-grocery delivery and micro fulfillment.

Negative

• Higher gross margin from software services is not expected to sustain at current levels.
• Integration challenges may arise from the acquisition of MaxDelivery.

NEW YORK, Dec. 14, 2021 (GLOBE NEWSWIRE) -- Boxed, Inc. (NYSE: BOXD, BOXD WS) (“Boxed” or the “Company”), an e-commerce grocery platform that sells bulk consumables and licenses its e-commerce software to enterprise retailers, today announced that it has filed with the U.S. Securities and Exchange Commission (the "SEC") its Current Report on Form 8-K (the "Super 8-K"), in connection with the completion of the business combination with Seven Oaks Acquisition Corp. As part of the Super 8-K, Boxed reported its financial results as of and for the nine months ended September 30, 2021. Certain highlights disclosed in the Super 8-K include:

• Net Revenue: Net revenue increased 20% year-over-year, from $40.9 million in the third quarter of 2020 to $49.0 million in the third quarter of 2021, bolstered by $10.8 million of Software and Services revenue.
• Average Order Value (“AOV”): LTM AOV was $117 as of the third quarter of 2021, which is an increase of $13 or 9% over LTM AOV of $104 as of the third quarter of 2020. AOV continues to improve, reflecting Boxed’s investment in technology and personalization improvements and the return of B2B customers as employees return to office.
• Gross margin: The Company reached a gross margin of 25.8% in the third quarter of 2021, an increase of 890 basis points from 16.9% in the third quarter of 2020, bolstered by an increased mix of net revenue from its higher margin Software & Services segment. For the first three quarters of 2021, gross margin was 17.2%, an increase of 340 basis points from 13.8% in the first three quarters of 2020. The increased mix of net revenue from the higher margin Software & Services segment that led to a higher gross margin in the third quarter of 2021 is not expected to continue to the same degree in the near term.
• Proceeds: On December 8, 2021, Boxed raised approximately $198 million in gross cash proceeds via its business combination with Seven Oaks Acquisition Corp. Given the timing of the transaction, Boxed is now poised to expand investments in marketing, sales, and research & development initiatives to help support growth of its B2C, B2B, and Software and Services offerings.
• MaxDelivery: On December 9, 2021, Boxed closed its previously announced acquisition of substantially all the assets and operations of MaxDelivery, LLC, one of New York’s first on-demand grocery delivery services. The acquisition marks Boxed’s entry point into the rapidly growing fast-grocery delivery space and is expected to broaden the Company’s capabilities in micro dark-store fulfillment and fresh grocery supply chain. MaxDelivery will also become a client of Boxed’s Software & Services, adopting its proprietary commerce technology to help enable scalability of its operations, and expansion into additional markets over time.
  

About Boxed
Boxed is an e-commerce retailer and an e-commerce enabler. The Company operates an e-commerce retail service that provides bulk pantry consumables to businesses and household customers, without the requirement of a “big-box” store membership. This service is powered by the Company’s own purpose-built storefront, marketplace, analytics, fulfillment, advertising, and robotics technologies. Boxed further enables e-commerce through its Software & Services business, which offers customers in need of an enterprise-level e-commerce platform access to its end-to-end technology. The Company aspires to make a positive social impact with an emphasis on good Environmental, Social and Governance (“ESG”) practices, and as such, has developed a powerful, unique brand, known for doing right by its customers, employees and society. For more information, please visit investors.boxed.com.

Forward-Looking Statements

Certain statements in this press release may be considered forward-looking statements. Forward-looking statements generally relate to future events or Boxed’s future financial or operating performance. For example, statements regarding the expected benefits of the expanded use of the Google Cloud Platform, the competitive environment in which Boxed operates and the expected future operating and financial performance and market opportunities of Boxed are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "pro forma", "may", "should", "could", "might", "plan", "possible", "project", "strive", "budget", "forecast", "expect", "intend", "will", "estimate", "anticipate", "believe", "predict", "potential" or "continue", or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. 

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Boxed and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (i) the outcome of any legal proceedings that may be instituted against Boxed or others following the announcement of the business combination and any definitive agreements with respect thereto; (ii) the ability to meet stock exchange listing standards following the consummation of the business combination; (iii) the risk that the business combination disrupts current plans and operations of Boxed as a result of the announcement and consummation of the business combination; (iv) the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of Boxed to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (v) costs related to the business combination and being a public company; (vi) changes in applicable laws or regulations; (vii) the possibility that Boxed may be adversely affected by other economic, business, regulatory, and/or competitive factors; (viii) Boxed's estimates of expenses and profitability; (ix) the evolution of the markets in which Boxed competes; (x) the ability of Boxed to implement its strategic initiatives and continue to innovate its existing offerings; (xi) the ability of Boxed to defend its intellectual property; (xii) the ability of Boxed to satisfy regulatory requirements; (xiii) the impact of the COVID-19 pandemic on Boxed's business; and (xiv) other risks and uncertainties set forth in the section entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the Company’s Super 8-K and in other reports the Company files with or furnishes to the SEC.

Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Boxed does not undertake any duty to update these forward-looking statements. 

Investor Contacts
Chris Mandeville
ICR
BoxedIR@icrinc.com  

Media Contacts
David Taft
Boxed
dave@boxed.com 

FAQ

What were the financial results of Boxed for Q3 2021?

Boxed reported a net revenue of $49.0 million for Q3 2021, a 20% increase year-over-year.

What is the significance of Boxed's acquisition of MaxDelivery?

The acquisition allows Boxed to enter the fast-grocery delivery market and enhances its micro dark-store fulfillment capabilities.

How much capital did Boxed raise from its business combination?

Boxed raised approximately $198 million in gross cash proceeds from its business combination with Seven Oaks.

What challenges might Boxed face after acquiring MaxDelivery?

Boxed may face integration challenges post-acquisition of MaxDelivery, affecting operational efficiency.

How did Boxed's gross margin perform in Q3 2021?

Boxed's gross margin reached 25.8% in Q3 2021, an increase of 890 basis points compared to Q3 2020.