In a filing with the Securities and Exchange Commission on Friday, Dropbox said it planned to raise up to $500 million in the offering, and meant to use the money for a variety of purposes, including potential acquisitions. On Feb. 23, Dropbox announced its plans to raise $500 million through an IPO on Nasdaq (pdf) under the ticker "DBX". Its model of attracting paying consumer users through a pair of premium plans alongside business sales has generated a ton of revenue, as well as potential up-sell opportunities going forward.
It raised almost $2 billion in venture capital and reportedly hit a $10 billion valuation on the private market in 2014.
"We estimate that approximately 300 million of our registered users have characteristics - including specific email domains, devices, and geographies - that make them more likely than other registered users to pay over time", the company said in the filing.
It's official - Dropbox has finally filed for an initial public offering (IPO) after years of rumors and speculation. First Data Corp. went public at a market value of about $14 billion in 2015 - the biggest such IPO in the past five years. "This is the world we want to live in". The company's revenue increased more 30 percent previous year to $1.1 billion from $845 million in 2016. It lost $112 million in 2017, down from $210 million in 2016.
Goldman Sachs Group Inc., JPMorgan Chase & Co., Deutsche Bank AG and Allen & Co. are leading the offering.
Dropbox, which was founded by MIT students Drew Houston and Arash Ferdowsi, promises to be one of the most prominent technology initial public offerings of the past few years. It doubled that in two years, to 11 million.
The three earn base salaries of $400,000 and have cash bonuses with annual targets of $260,000.
"Our market opportunity has grown as we've expanded from keeping files in sync to keeping teams in sync", the company said in the filing.
The company made public its filing on Friday, but noted that it submitted documents previous year in a confidential filing with the SEC under rules for "emerging" growth companies. Chief Strategy Officer Imran Khan got a grant of stock worth about $100 million.