Dropbox to go public with $500M IPO filing


Its private-market valuation, based on previous venture capital fund-raising, is estimated at $10 billion.

The smaller question: Which company can we compare it to? The company will list on the Nasdaq as "DBX". The company has been around since 2007 and has raised over $600 million in funding.

"With over a $1 billion in revenues it speaks to Dropbox's success over the past few years and is an impressive number in a fertile space", said Daniel Ives at research firm GBH Insights. If the best point of public-market comparison is Atlassian, which has a revenue multiple of about 15, then Dropbox could be valued at over $16 billion on public markets.

Dropbox's SEC filing can be read here, and the script of The Emoji Movie (2017), where Dropbox is mentioned by name over half a dozen times, can be read here.

Going public is a huge milestone for Dropbox and has been one of the most anticipated tech IPOs for several years now. The unicorns still on the IPO sidelines include ride-hailing company Uber and home-sharing company Airbnb.

The amount of money a company says it plans to raise in its first IPO filing is usually a placeholder.

Dropbox will also be the first IPO for Y Combinator, the accelerator program that has become a hallmark of Silicon Valley promise.

The San Francisco company claimed 500 million users in 180 countries and $1 billion in annual revenues in documents filed with the Securities and Exchange Commission. The company shared it has 500 million registered users, with 100 million users having signed up since the beginning of 2017. Therefore, the company didn't need to hire a lot of sales and marketing staff. More than 11 million of these users pay for the services. Dropbox has incurred losses annually since it has been in business, logging net losses of $111.7 million and $210.2 million respectively last year and the year prior. The company also impressively posted $305 million in free cash flow in 2017 - far better than Box, which had only a positive free cash flow of $6.3 million in its latest quarterly filing at the end of 2017.

Goldman Sachs & Co., JPMorgan and Deutsche Bank Securities are some of the leading underwriters for the IPO.