Dropbox files to go public with over $1.1 billion in annual revenue

Joanna Estrada
February 24, 2018

Web-storage company Dropbox Inc. raised the curtain Friday on its long-awaited initial public offering, which is set to be one of the biggest tech debuts of the past few years. Dropbox had previously filed the documents confidentially.

Dropbox will list on the Nasdaq under the ticker "DBX". It recorded a net loss of $112 million during 2017, but that's a significant improvement upon the $326 million loss it recorded in 2015.

The shares awarded to Houston and Ferdowsi vest if Dropbox's stock price reaches $20 to $60 within 10 years of the close of the offering, the filing said. This compares to $845 million in revenue the year before and $604 million for 2015.

The California-based digital storage firm with 11 million paid users across 180 countries said that about half of its 2017 revenue came from customers outside the United States. The company's last private valuation put it at $10 billion.

Dropbox's expenses have been driven by a swelling R&D budget, but the company became free-cash-flow positive in 2016. Notably, Dropbox's founder, Drew Houston remembers an intense interaction with Steve Jobs when he called Dropbox "a feature, not a product". Goldman Sachs, J.P. Morgan, Deutsche Bank and Allen and Company are among the top underwriters for the IPO.

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