Company: Dropbox, Inc.
Symbol: DBX
Description: Dropbox is a global collaboration platform where content is created, accessed, and shared with the world.
Trade Date: 3/23
Shares: 36 million
Price Range: $16.00-$18.00
Underwriter(s): Goldman Sachs & Co., J.P. Morgan, Deutsche Bank Securities, Allen & Company LLC, BofA Merrill Lynch, RBC Capital Markets, Jefferies, Macquarie Capital
Co-Manager(s): Canaccord Genuity, JMP Securities, KeyBanc Capital Markets, Piper Jaffray
Terms Added: 3-12-18
Dropbox will be the year’s second “unicorn” IPO…following in the footsteps of ZScaler from last week.
Business: Their market opportunity has grown as they expanded from keeping files in sync to keeping teams in sync. They are focused on reducing the inordinate amount of time and energy the world wastes on “work about work”—tedious tasks like searching for content, switching between applications, and managing workflows.
They want to free up users to spend more of their time on the work that truly matters. They believe the need for their platform will continue to grow as teams become more fluid and global, and content is increasingly fragmented across incompatible tools and devices. Dropbox breaks down silos by centralizing the flow of information between the products and services our users prefer, even if they’re not Dropbox’s own.
They have built a global business with over 11 million paying users.
Financials: Their revenue was $603.8 million, $844.8 million, and $1,106.8 million in 2015, 2016, and 2017, respectively, representing an annual growth rate of 40% and 31%, respectively. They generated net losses of $325.9 million, $210.2 million, and $111.7 million in 2015, 2016, and 2017, respectively. They also generated positive free cash flow of $137.4 million and $305.0 million in 2016 and 2017, respectively, compared to negative free cash flow of $63.9 million in 2015.
Salesforce Agreement: Salesforce Ventures LLC has entered into an agreement with us pursuant to which it has agreed to purchase $100,000,000 of our Class A common stock in a private placement at a price per share equal to the initial offering price. This transaction is contingent upon, and is scheduled to close immediately subsequent to, the closing of this offering.
Book-Building Status: The way the book comes together during the week of the roadshow is the most critical indicator to first-day and first-week performance. IPO Boutique uses its 45 years of experience and sources all over the street to gather daily subscription levels, specific price guidance and what type of investors are currently in the book or are anchoring orders in the book. In addition, recent underwriter performance on sector specific deals is a strong factor that IPO Boutique takes into account when determining if our clients should indicate for any offering.
IPO Boutique subscription clients receive daily updates on this critical information.
Conclusion: IPO Boutique provides ratings, daily commentary and a forecast for how this IPO will open vs. its offering price. We have kept a track record with our performance for last 12 years at our website. Additionally, here’s a 2017 recap of our performance to showcase the value of IPO Boutique’s service.
Indicate with confidence, SUBSCRIBE today.
English
Arabic
Chinese (Simplified)
Dutch
French
German
Italian
Portuguese
Russian
Spanish