International Finance

Dropbox offers an IPO to raise $500 million

Its shares will be traded on the Nasdaq as 'DBX'

Dropbox, a file transferring service provider has filed to go public with an initial public offering (IPO) of up to $500 million with the US Securities and Exchange Commission.

The San Francisco based company said that its shares will be traded on the Nasdaq as ‘DBX’.

The file sharing company that is known for its services like cloud storage, file synchronisation, personal cloud, and client software, asserted that it has 500 million users from 180 countries and $1 billion in annual revenues in documents have been filed with the Securities and Exchange Commission.

But Dropbox has only 11 million paid subscribers, while the total number of its registered subscribers last year stood at more than 500 million registered Dropbox users.

The Silicon Valley startup said: “A majority of our registered users may never convert to a paid subscription at our platform.”

The valuation in terms of latest private investment in the group remains at around $10 billion, which has made Dropbox one of the topmost Silicon Valley venture-backed startups.

In its regulatory filing, Dropbox stated that for 2017, the company has generated $1.11 billion as its revenue, which was 31 percent higher from $844.8 million a year earlier. As a result, the net loss came down to $111.7 million in 2017, compared to $210.2 million in 2016.

Daniel Ives, Chief Strategy Officer and Head of Technology Research at GBH Insights said: “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.”

“Dropbox’s business model has scaled successfully.”

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