The San Francisco-based cloud storage and business productivity tool maker, which had secretly filed to go public in January, plans to raise $500 million to push the business forward.
There's no word yet on when Dropbox stock will be available on the market, but it plans to trade on Nasdaq with the "DBX" symbol.
Unlike the profitable Emoji Movie ($US86 million, or $108 million, domestic gross), Dropbox continues to lose money after 10 years in operation, though the company is showing impressive growth of late.
The company's prospectus warns it has "a history of net losses"; anticipates increasing expenses and slowing revenue growth; and notes that it "may not be able to achieve or maintain profitability".
Dropbox has finally chose to go public 10 years after its launch. Or is it more like Atlassian, the successful workplace collaboration company that offers a more friendly point of comparison for Dropbox investors? However, this is almost double the 6.5 million paying users it had just two years ago, highlighting its potential to grow. So let's dive in to see some more details on the matter.More news: Raimondo joins coalition of governors to fight gun violence | Audio
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Dropbox has done very well over the past two years.
The company's biggest challenge is explaining to Wall Street what differentiates Dropbox from its many competitors, Box Chief Executive Aaron Levie told Reuters on Friday. Dropbox said in its filing that because these companies have bigger budgets, Dropbox will be under pressure to keep the price of its service in-line with competing services. That's a statistic that the company acknowledges it needs to improve.
Meg Whitman, the former CEO of Hewlett Packard Enterprise Co. who joined Dropbox's board in September, received stock worth $908,800.
For instance, Dropbox paid HPE $81.7 million in 2017 for servers, services, and a "multi-year subscription agreement for access to the Dropbox platform", which likely refers to a reselling arrangement between HPE and Dropbox.