Dropbox files to go public 10 years after launch

Phillip Cunningham
February 25, 2018

Dropbox filed for an initial public offering, seeking to raise an estimated $500 million for the Silicon Valley cloud computing storage startup. The filing does reveal a number of details about the company's userbase and growth, however, including that the service has 500 million registered users and that there's been a steady revenue increase over the last three years, despite seeing an overall loss. More than 11 million of those users pay for a premium plan. Houston, the CEO, owns about 25 percent of the company, according to the documents, and Sequoia Capital owns about another 25 percent.

In the company's registration for the IPO, it said it granted about $190 million in stock awards to three top executives past year.

There's no word yet on when Dropbox stock will be available on the market, but it plans to trade on Nasdaq with the "DBX" symbol.

Dropbox biggest competitor in the market is Box who has same file syncing business but Box deals with Government and enterprise customers which means higher-level security for the files while Dropbox only deals with individual customers that's why the company has followed simplicity in its application. Dropbox said publicly February 23 that it has filed for an initial public offering after threatening to do so for more than five years. The service brought in $1.1 billion in revenue previous year, the company said.

The company's prospectus warns it has "a history of net losses"; anticipates increasing expenses and slowing revenue growth; and notes that it "may not be able to achieve or maintain profitability". The company has been around since 2007 and has raised over $600 million in funding.

About $576 million of Dropbox's 2017 revenue came from the USA, with $531 million coming from other countries.

Of course, Dropbox is quite a different business.

Meanwhile, Dropbox's net loss was $210.2 million a year ago which decreased and now its $111.7 million in 2017, so according to this chart company is doing a pretty good job but they made a decision to take their company towards a higher level. Therefore, the company didn't need to hire a lot of sales and marketing staff. Dropbox is entering a potentially volatile market, because stock prices in all sectors have been on a roller-coaster ride in the first two months of the calendar year.

Other reports by

Discuss This Article