INVESTING IN DROPBOX IPO

Good news friends: We are starting to accept applications for Dropbox IPO! That’s right — one of the best cloud storage services is going public at last. It would be no exaggeration to say that the whole market was waiting for this moment. Let us tell why:

Dropbox hallmarks

Today Dropbox evidently dominates the race of cloud services. Even though it has to compete with such giants as Amazon and Google. Equally noteworthy is the fact that the company was incorporated just over 10 years ago, in 2007, — and managed to become one of the best from the best in the industry. The key strength of Dropbox lies in its shift towards the corporate segment. This provides for stable growth of paid subscriptions. For the moment the company counts over 300 thousand corporate clients. Totally the service has over 500 (!) million users from all over the world.

Dropbox has access to a very serious server infrastructure due to close partnership with Hewlett Packard Enterprise. This provides for scalability of the company in context of steady growing demand for storage place of a large bulk of data. Moreover, the service evolves also in terms of functionality expanding in mobile segment and extending the range of additional services, and this seems quite promising too.

Financial performance

Dropbox applies quite an unusual model of development and costs compared to other companies with such number of clients. It does not allocate great funds for marketing, but relies on self-service channels. Monetization is mainly due to corporate tariffs and additional services. As a result revenue of the company annually grows. Last year it was 1,1 bln $ compared to 845 mln $ in 2016 and 604 mln $ in 2015. Net loss of the company is decreasing at a steady rate — in 2017 it reached 112 mln $, which almost twice less than in 2016.

Revenue, mln $ and net loss, mln $

Public offering and deadlines

Dropbox will be listed at Nasdaq under the ticker symbol ‘DBX’. The company chose 12 investment banks including reputed Goldman Sachs and J.P. Morgan as underwriters of the project. The company expects to raise 500 mln $ during IPO, and its total capitalization may reach 10 bln $.

Investments to Dropbox shall be counted as mid risky. We forecast the average annual return at the rate of 80%. Minimum investment amount is equal to 5000 $.

The exact date of trading has not been announced yet, but it is more than likely to happen by the end of March.

Hurry up to make an application at UT Investment marketplace!!!