Dropbox Gave Three Executives $190 Million in Stock Before IPO

Dropbox Gave Three Executives $190 Million in Stock Before IPO

The San Francisco-based company brought in $1.1 billion in revenue previous year, with a net loss of $111 million.

"We estimate that approximately 300 million of our registered users have characteristics - including specific email domains, devices, and geographies - that make them more likely than other registered users to pay over time", the company said in the filing. The offering could come as early as March 19.

The filing reveals Dropbox has lost more than $1 billion since its inception. In any case, it's still likely to be one of the largest USA tech IPOs in recent years.

Dropbox, which was founded in 2007 and was valued at $10bn (£7.2bn) at a fundraising round in 2014, filed with an offering size of $500m, although this amount is normally a temporary placeholder and often changes. Now, Dropbox is the first big tech IPO of the year. The company's revenue growth rate has begun to slow, however. Ultimately, the company admits in the document, "a majority of our registered users may never convert to a paid subscription to our platform". From 2015 to 2016, Dropbox saved $39.5 million in the cost of revenue bucket thanks to the project, which reduced spending on "our third-party datacenter service provider" by $92.5 million offset by increased expenses of $53 million for its own data centers. The IPO is likely to attract a lot of attention because Dropbox's service is so widely used.

"While we're at scale, we can still move quickly", Dropbox co-founders Drew Houston and Arash Ferdowsi said in a letter to shareholders included in Friday's filing. Investor Sequoia Capital has 24.8 percent. Unlike many online publications, we don't have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.

Goldman Sachs, JPMorgan, Deutsche Bank are among underwriters of the IPO, according to the filing. On Feb. 23, Dropbox announced its plans to raise $500 million through an IPO on Nasdaq (pdf) under the ticker "DBX".