In its IPO filing, Dropbox said it earned $1.1 billion in revenue last year.
It's official -- Dropbox has finally filed for an initial public offering (IPO) after years of rumors and speculation. Reports circulated last month that Dropbox had already filed confidentially, but the paperwork is in and it's shedding some light on the file-sharing company's profitability and customer base.
In short, Dropbox said it is not yet profitable, having lost $111.7 million in 2017. But the losses are shrinking each year as revenue climbs. The company said it earned $1.1 billion in revenue last year, up from $603.8 million in 2015. Dropbox has been cash flow positive since 2016.
Meanwhile, Dropbox said it currently has 11 million paying users, which is far less than the 500 million registered users who access its services for free. The company said it generates average revenue of $111.91 per paying user.
Expectedly, the company disclosed in the filing that its business depends on the ability to convert registered users into paying users, and also the ability to retain and upgrade those paying users.
Dropbox will list on NASDAQ under the stock ticker DBX, but the initial stock price is still unknown and will likely be set closer to its Wall Street debut.
The company's shares will be split into a three-class structure. Class C shareholders will have no voting rights at the company, whereas Class A and Class B shareholders will have one and 10 votes per share, respectively.
Dropbox, which was founded in 2007, has been the subject of IPO rumors since at least 2013. The last private valuation for Dropbox was $10 billion in a 2014 funding round. Some critics called it too high compared to what the value would be on public markets.
The IPO filing also revealed that CEO Drew Houston owns 24.4 percent of Dropbox and "entities affiliated with Sequoia Capital" own 24.8 percent.
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