Billion Dollar Unicorns: How Will Dropbox Position In Collaboration?

Earlier this year, Billion Dollar Unicorn Dropbox (Nasdaq: DBX) finally went public. The company was expected to list last year, but the disappointing IPO performance for the technology industry resulted in a delay. It is still early days, but the company appears to have had a turbulent start.

Photo Credit: Ian Lamont/Flickr.com

Dropbox’s Financials

Dropbox recently reported its first-quarter results since it went public. Revenues grew an impressive 28% to $316.3 million. The market was looking for revenues of $309 million. It ended the quarter with adjusted earnings of $0.08 per share, compared with the Street’s forecast of $0.04 per share.

Among operating metrics, paying users grew from 9.3 million a year ago to 11.5 million at the end of the quarter. Average revenue per paying user also grew from $110.79 to $114.30.

Dropbox expects to end the current quarter with revenues of $328-$331 million. It forecast the year’s revenues at $1.34-$1.36 billion. For the current quarter, the market pegged Dropbox’s revenues at $325 million with adjusted earnings of $0.04 a share. They expect the company to report revenues of $1.35 billion for the year.

Till recently, Dropbox was venture funded. It had raised $1.7 billion from venture investors and through long-term debts. Its investors include JPMorgan, BlackRock, Innovation Department, QueensBridge Venture Partners, Salesforce Ventures, T. Rowe Price, Index Ventures, Accel Partners, AFSquare, Benchmark, Glynn Capital Management, Goldman Sachs, Greylock Partners, Institutional Venture Partners, RIT Capital Partners, Sequoia Capital, SV Angel, Valiant Capital Partners, Ali Partovi, Amidzad Partners, Bobby Yazdani, Hadi Partovi, Pejman Nozad, Signatures Capital, and Y Combinator. Earlier this year, it raised $777 million at a valuation of $7.1 billion in an IPO. The valuation at the time is well below the $10 billion that it was valued at back in 2014.

Dropbox’s Diversifying Offering

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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