SEC documents have been unsealed this week, revealing that Dropbox has filed for an initial public offering to the tune of $500 million. Last month Bloomberg reported that the company had filed a secret IPO, meaning the company's S-1 was bound to drop soon-and here we are today.
Dropbox, which was valued at $10 billion in its 2014 funding round, would be one of the biggest USA enterprise technology companies to list domestically in several years.
Like many recent tech companies to IPO, Dropbox is unprofitable. The company said that in 2016, it was able to shrink it's cost of revenue by $35.1 million as part of its AWS migration, which it refers to as "Infrastructure Optimization".
Dropbox has incurred losses annually since it has been in business, logging net losses of $111.7 million (roughly Rs. 724 crores) and $210.2 million (roughly Rs. 1,370 crores) respectively last year and the year prior.
Stakes rise in Turkish Afrin attack as pro-Assad militia arrive
On Monday, Turkey warned the Syrian government against sending troops into Afrin to back the YPG militia. However, Istanbul has denied that pro-Assad forces in Afrin are working in coordination with Damascus.
Unlike the profitable Emoji Movie ($US86 million, or $108 million, domestic gross), Dropbox continues to lose money after 10 years in operation, though the company is showing impressive growth of late. What are your thoughts on Dropbox filing for IPO of up to $500 million? Their shares will vest if Dropbox's stock achieves a series of price hurdles ranging from US$20 to US$60 within a decade of the offering's close, the filing said. The company will trade on Nasdaq under the symbol "DBX".
Dropbox's revenue was $1.11 billion in 2017, a 31 percent increase from the year prior.
The group said it had 500m registered users, of which 100m had signed up since the start of 2017, and that it was generating around $112 in average revenue per paid user.
Meg Whitman, the former CEO of Hewlett Packard Enterprise Co. who joined Dropbox's board in September, received stock worth $908,800. Still, the company details some of its financial ties to HPE in the filing that haven't been previously disclosed and were likely related to Dropbox's migration from AWS, which HPE helped out with.