A Rapid Expansion
Dropbox has gone public on the Nasdaq under ticker symbol DBX. It has been an incredible ride for the data-storage company, which was started by two MIT students, Drew Houston and Arash Ferdowsi. Their new IPO stands as a showcase of strength of the tech sector.
In the earliest days of Dropbox, the company faced harsh odds of success. Data storage is a very competitive industry. To succeed, the product had to be exceptional. In what has become Silicon Valley lore, the company focused all of its efforts on making its data syncing app work seamlessly across all devices in an MVP format. Founder Drew Houston uploaded a simple video of the product demo and watched their beta waitlist swell from 5,000 to 75,000 people. It was astonishing validation for the promising startup.
Drop it Like it’s Hot
Dropbox now has over 500 million global users, 11 million of which pay for the service. The customer base is highly dispersed and spans across 180 countries. The Dropbox for Business platform launched in 2014 and the company counts 300,000 teams using it. In 2015 the company had revenues of $603 million, and by 2017, revenues had increased to $1.1 Billion! The company claims it was the fastest software-as-a-service company to hit one billion in annual turnover in history.
Salesforce, the enterprise software company, is investing $100.3 million into the Dropbox IPO at $17 per share in a private placement. That move has been regarded as an indication that they might wish to buy Dropbox in the future. Famously, the Dropbox founders rebuffed a potential offer in 2011 from the late Steve Jobs to acquire the company. Apple then came out with its iCloud service around the same time. This may have been an effort to compete with the company it could not acquire.
And remember, no matter what the IPO share price is, you can buy Dropbox for as little as $5 through Stockpile here. 🙌