Dropbox announced that it had filed paperwork for its long-awaited IPO. After six rounds of funding, worth more than $600 million, and two lines of debt-financing credit worth another $1.1 billion, the cloud-storage company announced Friday that it intends to go public.
According to the SEC filing, the proposed offering aims to raise $500 million in Class A common stock, and shows robust revenues for the company over the past several years. According to the filing, in 2017 Dropbox saw $1.1 billion in revenue, a $255 million increase over 2016 revenues of $845 million, and a $496 million increase over 2015’s $604 million in revenue.
While the company is not yet profitable, 2017 also saw Dropbox post losses of only $112 million compared with 2016’s $210 million, and 2015’s $326 million. All this comes as welcome news for investors especially added to the fact that the company announced in 2016 it was cash flow positive.
Most recently, Dropbox’s valuation among private investors reportedly stood at $10 billion. Whether or not public sentiment will confirms this value remains to be seen, but there is no arguing with the site’s user-base. According to the SEC filing, Dropbox claims more than 500 million registered users. Among these, the company says some 11 million users pay for the site’s premium services.
Dropbox was founded in 2007 by Drew Houston after reportedly forgetting his USB drive as a student at MIT. Houston developed Dropbox initially to aid to himself, but soon realized the service would benefit others as well. In 2009, after attended Y-Combinator, Dropbox closed a $15,000 round of seed funding. Realizing the potential of the new company, this initial investment was soon followed by an additional round of seed funding worth $1.2 million, and led by investor Sequoia Capital. One year later in November of 2008, Sequoia Capital led a second round of Series A funding worth another $6 million for Dropbox. Three years after that in October of 2011, Dropbox closed a round of Series B funding worth another $250 million. And, three years after that in 2014, a round of Series C funding worth another $350 million was closed this time led by investors at, BlackRock. All told, total funding raised by Dropbox so far, not including lines of credit, stands well north of $600 million.
According to the SEC filing, the company’s co-founder and CEO Drew Houston will retain a 24.4% voting stake in the company, while heavily invested Sequoia Capital will retain 24.8%. The funding sought through the IPO will reportedly be used to transition more users to premium services and expand plans to further integrate the technology on other third party platforms.
The company will be traded on the NASDAQ under the ticker symbol DBX, and is anticipated to go public sometime in March.