Dropbox aims to raise up to $500 million in an IPO under the ticker “DBX”. The cloud-based file storing and sharing company has traditionally had roots in consumer offers and is now attempting to utilize more business-oriented revenue streams. Dropbox is worth more than $1 billion, but it still isn’t profitable yet. In the IPO filing with the US
Securities and Exchange Commission, Dropbox released information that stated that it had 500 million total registered users in 180 countries. 11 million of those users were paid subscribers with an average revenue of $111.91, meaning that the company brought in $1.1 billion in revenue last year.
However, it still lost $112 million in 2017, which is less than the $210 million lost in 2016. Dropbox has nearly doubled their number of paying users and revenue since 2015 Dropbox anticipates increased expenses and slow revenue growth, which could mean “it may not be able to achieve or maintain profitability”. In order to compete against their strong competition, they have been spending much of their revenue on research and converting non-paying users to paid subscribers.
The company hopes that the IPO will help distinguish them from competitors such as Google,
Microsoft, Amazon, and Box.The $500 million Dropbox plans to raise in its IPO filing is subject to change.
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