Dropbox has announced over $1.1 billion in annual revenue and has made its IPO filing. The cloud storage company has filed to come up with $500 million in a public offering.
Dropbox IPO Filing
Dropbox, the popular cloud storage company, has filed to raise $500 million in a public offering. This provided investors with their first glimpse at the company’s books. The company was once valued at $10 billion, but that was four years ago and many believe its valuation has slipped.
The filing revealed the company’s 2017 revenues, which reached $1.11 billion. This represented a rise of 31 percent over its 2016 revenues. That said, this still represented a net loss of $111.7 million last year. Equally, that figure was a far smaller loss than the $210.2 million lost in 2016.
In 2017, the company paid $111.91 per user, which was more than what it had been the year before, but less than the amount from 2015. Its gross margin was 67 percent. There were 500 million registered users last year, 100 million of which had joined since the start of last year. Among them, over 11 million were paying users.
Dropbox made its official filing at the end of last week. It will be listed on the Nasdaq as “DBX”. The filing was made following a previous one in which the documents were submitted in confidence.
The documents revealed the names of the investors who will benefit the most from the filing. For instance, it showed that Drew Houston, the company’s co-founder and CEO, has a 24.4 percent share of the business. Sequoia Capital, a venture capital company, owns a 24.8 percent share.
The filing also showed that Dropbox’s primary expenses have been associated with a rapidly rising R&D budget. That said, in 2016, the company turned positive in its free cash flow. This broke away from the trend among most cloud companies. They typically lean on enterprise sales teams. However, 90 percent of the revenue brought in by Dropbox was brought in from users purchasing their own individual subscriptions, said the company’s IPO filing documents last week.