Dropbox Built an IPO Based on Business Users, but It Cannot Ignore IoT and AI For Long-Term Success

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By Jake Saunders | 1Q 2018 | IN-5076


A Sold-Out IPO


On March 22, 2018, Dropbox had its Initial Public Offering (IPO), raising US$750 million and giving the company an overall valuation of US$9.2 billion. In its prospectus, the company did announce some respectable metrics:

  • Dropbox generated US$1.1 billion in sales in 2017, a 31% increase on the US$844.8 million it achieved in the previous year.
  • Of course, like most hip and trendy “tech unicorns,” the company has not been profitable to date. In 2017, Dropbox lost US$111.7 million, but that is 47% less than the US$305.0 million it lost in 2016.
  • Overall registered users around the world have stayed the same at 500 million, but the company stresses that 11 million of those are paying for additional collaborative and business-friendly features and that its core corporate software product, Dropbox Business, now has 300,000 users up from 150,000 a year ago.

These are fairly positive metrics, and Dropbox has been prudent to focus on the enterprise and business users that have valued the additional features such as collaboration tools, advanced security and …

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