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.
"Our market opportunity has grown as we've expanded from keeping files in sync to keeping teams in sync", the company said in the filing. Should we think about Dropbox in the way we think about Box, the publicly traded cloud-storage company?
The filing reveals Dropbox has lost more than US$1 billion since its inception.
Dropbox was last valued at $10 billion in a 2014 venture-capital round. Dropbox had previously filed the documents confidentially.
Now we know the first big tech company to go public in 2018. Several other high-flying Silicon Valley companies - from Uber to Airbnb - are no doubt watching closely how Dropbox performs as they mull when to time their own public offerings.
The amount of money a company says it plans to raise in its first IPO filing is usually a placeholder. CEO Drew Houston reported a while ago in eWEEK that the company had reached a $1 billion annual revenue run rate. The service has 11 million paying users, but most of its more than 500 million users don't pay for the service. However, this is almost double the 6.5 million paying users it had just two years ago, highlighting its potential to grow. Therefore, the company didn't need to hire a lot of sales and marketing staff.
The company's top priority is convincing its existing free users to switch to paying subscriptions, but it openly acknowledges that "a majority of our registered users may never convert to a paid subscription to our platform". Dropbox has incurred losses annually since it has been in business, logging net losses of $111.7 million and $210.2 million respectively last year and the year prior.
Meanwhile, Dropbox's net loss was $210.2 million previous year which decreased and now its $111.7 million in 2017, so according to this chart company is doing a pretty good job but they made a decision to take their company towards a higher level.
The main underwriters for the offering are Goldman Sachs Group Inc. and JPMorgan Chase & Co., though the filing lists many other participating banks: Deutsche Bank Securities, Allen & Co.