Dropbox files for IPO as market competition increases

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Cloud storage company Dropbox has filed for a $500 million IPO. The company said it earned $1.1 billion in revenue past year, up from $603.8 million in 2015.

The stock will trade under the ticker symbol DBX. Dropbox became cash-flow positive in 2016, but recorded a loss of $111 million that year after pouring money back into its product development efforts.

The company said it had over 500 million registered users, but only 11 million of them are paying. Like a lot of tech companies, the company's annual revenue has grown decently year-over-year, but it's still losing less than it did previously.

Dropbox biggest competitor in the market is Box who has same file syncing business but Box deals with Government and enterprise customers which means higher-level security for the files while Dropbox only deals with individual customers that's why the company has followed simplicity in its application.

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"The market is hot right now", tech analyst Rob Enderle of Enderle Group said while discussing the move by Dropbox to go public with shares. Or is it more like Atlassian, the successful workplace collaboration company that offers a more friendly point of comparison for Dropbox investors? Dropbox said that no one country other than the USA accounts for over 10% of its overall sales. The offering could come as early as March 19.

In the company's registration for the IPO, it said it granted about $190 million in stock awards to three top executives previous year. 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 company shared it has 500 million registered users, with 100 million users having signed up since the beginning of 2017.

Dropbox, which was valued at $10 billion in its 2014 funding round, would be one of the biggest USA enterprise technology companies to list domestically in several years. That's a statistic that the company acknowledges it needs to improve.

For instance, Dropbox paid HPE $81.7 million in 2017 for servers, services, and a "multi-year subscription agreement for access to the Dropbox platform", which likely refers to a reselling arrangement between HPE and Dropbox.

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