Dropbox Set To Go Public At $6.7BN Market Cap, A Huge Haircut To Its Private Valuation

Dropbox has filed the terms of its long-awaited IPO, according to which it aims to raise as much as $648 million, by marketing 36 million shares range from $16 to $18 apiece, resulting in valuation between $7 and $7.9 billion.

Dropbox's proposed market cap would be $6.7 billion, far below the $10 billion private company valuation that made it one of the world's highest valued companies 4 years ago; the market cap is also below the valuation range as Dropbox will also sell restricted stock and options, pushing its value on a fully diluted basis higher than its market value.

Still, despite the deep haircut, the cloud storage company - which has pitched itself as unleashing creative energy and inspired work - would be the first big tech company to go public since Snap which went public last spring. First Data Corp went public at a market value of about $14 billion in 2015, making it the biggest such IPO in the past five years.

According to Bloomberg, while the company is inching closer to profitability, Dropbox outlined in its deal prospectus its focus to get more of those users to pay up. Investors are sure to have questions for the file-sharing technology leader as it embarks on its marketing roadshow.

As the FT notes, like Snap, Dropbox will go public with a dual-class share structure that hands more voting rights and control to executives.

The company’s revenue increased more 30% last year to $1.1 billion from $845 million in 2016. In the same period, the company’s net losses shrank to $112 million from $210 million. Goldman Sachs, JPMorgan Chase, Deutsche Bank and Allen & Co. are leading the offering.

The company plans to list on Nasdaq Global Select Market under the symbol DBX.


DEMIZEN Baron von Bud Mon, 03/12/2018 - 12:46 Permalink

the ms office suite is a feature maze packed with all of the shit they developed in last 30 years and essential editing is not so unique anymore. even ZH comment box is getting there. I was invited to teams it is good but I will never get to use 95% of their frills

who still does powerpoint? salvation army usher institute? sun valley retreats?

In reply to by Baron von Bud

ohBehave Mon, 03/12/2018 - 08:26 Permalink

Sorry for the positive remark, but I must say that Dropbox is my absolute favorite file storage/sync system....and I use other systems, too (google drive, iCloud, Onedrive).  The Dropbox service somehow manages to be quick, very obvious/easy to use, and has great cross-platform support.  I'm not a paying user, though....not sure how they make a profit.

NoDebt Mon, 03/12/2018 - 08:26 Permalink

"Dropbox will go public with a dual-class share structure that hands more voting rights and control to executives."

As wonderfully appealing as your request for my money with no attendant voting rights may seem, I'll pass.  Somehow a "cloud" company that seems like little more than a giant network drive you can share with others just doesn't seem all that "high tech" any more.


Iconoclast421 Mon, 03/12/2018 - 08:35 Permalink

I used to love dropbox. Been using it for 15 years. Now the app wont even let you share a link to a file anymore... it gives an error and when you google the error you get basically no info. 

silverer Mon, 03/12/2018 - 08:37 Permalink

Years ago I tried Dropbox. At the time, I wasn't able to delete any files I uploaded. I felt like once it went out, I no longer had control, so I stopped using it even though at the time I could continue. I don't like the cloud, I don't trust the cloud, I won't use the cloud. With memory cheaper than ever, you can back up your files and keep them in two places. What's the big deal?

TylerDurden6mil Mon, 03/12/2018 - 08:38 Permalink

And today I stop using Dropbox. They are probably already selling your data, but when they have to appease investors, it's guaranteed they'll sell anything of yours they can. Oh well.

not-me---it-wa… Mon, 03/12/2018 - 09:18 Permalink

i'm in!  what a bargain.  probably the only

tech company that lost 33% of its "value"

over the past 4 years.  how unique!


of course, i'd pay double is they just renamed

it  "longdropchainboxcloudcoinspamgram"

EcoJoker Mon, 03/12/2018 - 10:15 Permalink

I use dropbox and pay for it.. As a small business, you have to have the space.  It's pretty easy to use AND delete files so you mouth breathers must be pretty stupid if you have trouble with this service.

EcoJoker Mon, 03/12/2018 - 10:17 Permalink

I see the same turds ripping almost every post to shreds.  I swear some of you turds must be constantly miserable.   How do you get thru life?

Where's the jackass with the dead Palestinian children post? 




Nesbiteme Mon, 03/12/2018 - 10:27 Permalink

OMG! Dropbox is only worth $6.7bn! WOW! Dropbox....I feel that Pets.com if it were alive today would be worth $100 trillion (vintage old school factor + current market valuations given to rat turds), Cosmo.com $2 trillion (same idea)...okay then.

JibjeResearch Mon, 03/12/2018 - 11:10 Permalink

They are trying to squeeze the last drop out.  A blockchian cloud storage is more secure and private than what they are doing.  That blockchain is coming.

DEMIZEN Mon, 03/12/2018 - 12:22 Permalink

I like Dropbox. No bullshit attached to their pitch, no extra features, just a simple tool that works. Their paper interface is clean, fast, intuitive. no frills It a pretty crowded place though, Microsoft is coming with teams, icloud will chime in with their own itrojan shitbagware, the niche is packed with big players but why not take some dole and give it a shot? they won't survive selling storage. Will honchos invest? just as likely as in any other oversold shit. It's btfd time.


Johnathonathon Mon, 03/12/2018 - 13:47 Permalink

I used to have to use Dropbox to receive photos from our event photographer. Now we all just use Google drive... Literally the same product just free instead of ~25$ USD a month!!!

An Shrubbery Tue, 03/13/2018 - 05:06 Permalink

"The company’s revenue increased more 30% last year to $1.1 billion from $845 million in 2016. In the same period, the company’s net losses shrank to $112 million from $210 million."

That looks like a NEGATIVE CASH BURN, no wonder the style-conscious investors are laughing at them...

An IPO that knows how to turn a profit? That's SO twentieth century, lolz!