Read on Twitter
1) Big User Base
Dropbox has 600 million registered users; yes, that's correct.
Out of that, around 15 million users are paying users (more paying users than $WORK has).
Dropbox has 600 million registered users; yes, that's correct.
Out of that, around 15 million users are paying users (more paying users than $WORK has).
2)
...Even though many users are probably not active anymore (or maybe even "double"), I find that companies with user bases can sell current our new products much easier than if they have to acquire new customers.
...Even though many users are probably not active anymore (or maybe even "double"), I find that companies with user bases can sell current our new products much easier than if they have to acquire new customers.
3) Financials
Dropbox is guiding for $1.9 billion in revenue this year. They now have almost $2 billion in ARR. They are growing around 15% on the top line, but their paying user base has recently grown by about 20% YoY.
Dropbox is guiding for $1.9 billion in revenue this year. They now have almost $2 billion in ARR. They are growing around 15% on the top line, but their paying user base has recently grown by about 20% YoY.
4)
...They have a great stable Gross margin at over 75%.
In the last 3 years, they upped their R&D spend, which is now between 600 million - 800 million per year. I like to invest in companies with significant R&D. Even with this kind of spend, they are almost break even.
...They have a great stable Gross margin at over 75%.
In the last 3 years, they upped their R&D spend, which is now between 600 million - 800 million per year. I like to invest in companies with significant R&D. Even with this kind of spend, they are almost break even.
5) Valuation
The valuation is more than reasonable, IMO.
$DBX trades at 4.5x Sales and a forward P/E of 20 (yes P/E with SaaS we forgot what that is, right?).
The valuation is more than reasonable, IMO.
$DBX trades at 4.5x Sales and a forward P/E of 20 (yes P/E with SaaS we forgot what that is, right?).
6) Interesting acquisition
At start of 2019, they acquired a company called Hello Sign for $230 million.
Hello Sign is basically a competitor of $DOCU.
Even though they don't disclose the number for Hello Sign we can safely assume that in 2020 they did pretty well.
At start of 2019, they acquired a company called Hello Sign for $230 million.
Hello Sign is basically a competitor of $DOCU.
Even though they don't disclose the number for Hello Sign we can safely assume that in 2020 they did pretty well.
