Dropbox files for IPO of up to $500 million
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[February 24, 2018]
By Salvador Rodriguez and Laharee Chatterjee
(Reuters) - Data-sharing business Dropbox
Inc on Friday filed for an initial public offering of up to $500 million
with the U.S. Securities and Exchange Commission.
The San Francisco-based company, which started as a free service to
share and store photos, music and other large files, competes with much
larger technology firms such as Alphabet Inc's <GOOGL.O> Google,
Microsoft Corp <MSFT.O> and Amazon.com Inc <AMZN.O> as well as
cloud-storage rival Box Inc <BOX.N>.
It plans to have its common stock listed on Nasdaq under the ticker
symbol "DBX." (http://bit.ly/2omUnih)
In its regulatory filing, Dropbox reported 2017 revenue of $1.11
billion, up 31 percent from $844.8 million a year earlier. The company's
net loss narrowed to $111.7 million in 2017 from $210.2 million in 2016.
"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. "Dropbox’s business model has
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The Dropbox app logo seen on a mobile phone in this illustration
photo October 16, 2017. REUTERS/Thomas
The company's biggest challenge is explaining to Wall Street what differentiates
Dropbox from its many competitors, Box Chief Executive Aaron Levie told Reuters
“If Dropbox continues to focus on their user experience, they'll be able to
compete successfully for consumers and professionals,” Levie said.
Dropbox, which has 11 million paying users across 180 countries, said that about
half of its 2017 revenue came from customers outside the United States.
Goldman Sachs & Co, JPMorgan and Deutsche Bank Securities are some of the
leading underwriters for the IPO.
The amount of money a company says it plans to raise in its first IPO filing is
usually a temporary placeholder.
(Reporting by Salvador Rodriguez in San Francisco and Laharee Chatterjee in
Bengaluru; Editing by Bill Rigby)
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