How will Dropbox IPO Filing Justify the $8.2 Billion Valuation?

How will Dropbox IPO Filing Justify the $8.2 Billion Valuation?

How will Dropbox IPO Filing Justify the $8.2 Billion Valuation?

Dropbox's IPO is being closely watched by the investment world to gauge market appetite for tech unicorns - young companies valued at more than $1 billion.

The initial public offering of Dropbox Inc. may help end the lack of Silicon Valley companies from going public thanks to their own high private valuations. Initially, shares were expected to sell in the $16 to $18 range.

Dropbox makes its public debut on the Nasdaq Stock Market in one of this year's most highly-anticipated IPOs. With the first day of trading underway, the Dropbox IPO is off to a healthy start, as stock prices climb over 40 percent. At present, Dropbox's main cloud storage competitor is Box.

Dropbox reported revenue of $1.11 billion in 2017, up 32 percent from a year earlier. The cloud-based file sharing company received $10 billion valuation during 2014 private funding round, slightly higher than the current valuation. The stock has increased more than sixfold since the IPO, giving the company a market value of about $22 billion.

The company's stock market debut is the first big technology float since Snap, the company behind the Snapchat messaging app, went public a year ago.

Venture capital firm Sequoia Capital will retain a stake of about 25 percent.

Obviously, these IPOs are such interesting times for capitalists that they could (and also usually do) obtain a little carried away with themselves, and also in the weeks and also months that follow we might see the marketplace appropriate that rate to a much more secure number.

The consumers who are looking for a deal in cloud storage may ignore Dropbox as they can go for more liberal cloud storage like Google, Microsoft, Amazon, and Apple. Dropbox is putting up 26.8 million shares and selling shareholders offering the remaining 9.2 million shares.

File storage and collaboration service Dropbox Inc.

The company posted a net loss of $111.7 million in 2017, a narrower loss than 2016's of $210.2 million. It now has more than 500 million registered users, but only 11 million of those pay for the service.

Goldman Sachs & Co LLC, J.P. Morgan, Deutsche Bank Securities, Allen & Company LLC and Bank of America Merrill Lynch are among lead underwriters to the offering.

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