Dropbox Files For IPO


The company's last reported valuation of $10 billion came during a venture capital funding round in 2014.

The company valued by private investors at $10 billion has tapped Goldman Sachs and JPMorgan Chase to lead the listing process, a source with knowledge of the company has confirmed to Forbes.

One of tech's youngest billionaires at 34-years-old, Dropbox CEO Drew Houston announced in January 2017 that the company had passed $1 billion in annual revenue run rate, meaning that its quarterly revenue at that time, if extrapolated across a one-year interval, would produce revenue of $1 billion. In December of the same year, Dropbox acquired two companies; Audiogalaxy, a startup "allowing users to store their music files and playlists in the cloud then stream them to any device", and Snapjoy, a company that allowed users to "aggregate, archive and view all of their digital photos from their cameras, phones and popular apps like Flickr, Instagram and Picasa, and then view them online or via an iOS app".

The company is aiming to begin trading on a stock market in the spring, one of the people briefed on the matter added, cautioning that the timing of an IPO is fluid and may change.

Dropbox could not be immediately reached for comment.

Wall Street will no doubt take note of that fact once Dropbox's stock starts trading. Some critics called it too high compared to what the value would be on public markets.

Dropbox joins a growing list of large tech companies preparing to go public in the United States early this year. The company will have to show potential investors how it's differentiating its core file-sharing products and newer collaboration tools from the likes of Google, Microsoft and Box. It's spent hundreds of millions of dollars to build data centres and mostly wean itself off of Amazon.com's servers, a rare feat for a software business with hundreds of millions of users. Goldman Sachs advised the company on earlier funding rounds and extended the company credit, while JPMorgan led a $600 million (roughly Rs. 3,800 crores) credit line to Dropbox previous year, the people said.