Dropbox filed to propose $500 million in a public offering on Friday, giving investors a first gaze at the books of a coveted unicorn start-up that was earlier valued at $10 billion.
Here’s what the filing said:
Revenue: $1.11 billion in 2017, up 31 percent from the previous year
Net loss: $111.7 million in 2017, conservative than 2016’s loss of $210.2 million
Average income per paid user: $111.91, up from 2016 but falling from 2015
500 million registered users, 100 million signaled up since the beginning of 2017
More than 11 million paying users
Gross margin: 67 percent
Dropbox will prepare on the Nasdaq under the ticker “DBX.” Dropbox’s plans to go public were removed by the SEC on Friday, after previously sharpening the documents confidentially.
The records showed that CEO and co-founder Drew Houston has 24.4 percent of voting power in the corporation, and Sequoia Capital has 24.8 percent.
Dropbox’s investments have been driven by a swelling R&D budget, but the business became free-cash-flow positive in 2016. Unlike many cloud organizations that rely on enterprise sales teams, over 90 percent of Dropbox’s revenue comes from users purchasing their own subscription, the company said.
Still, the loss-making organization has about $1.7 billion in contractual obligations, like leases, outstanding. Dropbox also has a multi-million dollar relationship with Hewlett Packard Enterprise. It has some stiff contestant, as well: Aspects of Dropbox’s business compete with giants like Amazon, Apple, Google, and Microsoft.
Proceeds from the IPO will be used to fund an extension plan of upgrading more users to agreements and expanding integration with third-party software. Goldman Sachs, J.P. Morgan, Deutsche Bank and Allen and Company are among the top underwriters for the IPO.
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