Dropbox Files For Its IPO Of Up To $500 Million, Details Available Publicly
Dropbox IPO is officially here and it's quite a milestone for the company. While being one of the most anticipated tech IPOs for several years now, it has raised $600 million in funding. The cloud storage based company has been around since 2007 and today, SEC has publicly released its IPO details which include several specific offerings like last years financial statement. So let's dive in to see some more details on the matter.
Dropbox Filed For IPO Of Up To $500 Million, Details Disclosed By SEC
As we have mentioned earlier, Dropbox filed for its IPO of up to $500 million. As per CNBC, the company's $500 million IPO matches precisely with its 500 million users, however, the digit is just a placeholder. Apart from this, Dropbox managed to create $1.11 billion in revenue just last year which gives it a total increase if 31 percent compared to its stats in 2016.
Even though the track records profitability, the company faced a net loss of $111.7 million in the previous year. However, these are significantly improved margins as the company lost almost $210 million in 2016 and $326 million in 2015. If the trend keeps up, the results would further improve. Dropbox's CEO, Drew Houston went through an intense interaction with Steve Jobs in which the late CEO denoted Dropbox as "a feature, not a product." In this regard, Business Insider reads:
And so he started trolling us a little bit, saying we’re a feature, not a product, and telling us a bunch of things like that we don’t control an operating system so we’re going to be disadvantaged, we’re going to have to figure out distribution deals, which are risky, and sort of a bunch of business-plan critiques. But then he was like, ‘Alright, well I guess we’re gonna have to go kill you, basically.’ Maybe not in those words, but pretty close.
However might people see the company, it's not that hard to get that Dropbox has become much more than a feature. The big unanswered question at this stage would be to see if the company would manage to achieve the $10 billion valuations, as it did in the private market. The cloud-based company is looking to build even more third-party partnerships using the funding received from IPO. The end result could potentially lead more paying customers to come out of its hefty user base.
If you're interested in checking out the entire IPO disclosure, you can do so from here. There will be more to the story, so be sure to stay tuned with us for more details.
This is all for now, folks. What are your thoughts on Dropbox filing for IPO of up to $500 million? Share your views with us in the comments.