Dropbox, a cloud storage and collaboration company that started 10 years ago in the San Francisco-based Y Combinator incubator program went public, its shares being close to 36 percent at the market close two days ago. This productive presentation made Dropbox the largest tech IPO beating Snapchat’s IPO in March 2017. The company ended the day of trading under a ticker symbol that showed “DBX,” with a market valuation of about $10 billion.
Dropbox had a successful outcome even though the price of its shares was $21 per share which is higher than the $18 – $20 range it projected. However, the soar up in price which enabled Dropbox match its last private funding rating is a welcomed vote of market assurance for a company that spent years to fight its way up amidst huge competition in the tech industry. The company’s business includes 11 million paying subscribers, individual cloud storage plans sold to consumers, and sales of businesses on company-wide enterprise-grade subscription plans that hinge on collaboration tools and integrations with products like Salesforce and Microsoft Office. The rate of the 11 million Dropbox users that are on business accounts are just about 30%.
Though Dropbox is currently on solid standing, it still faces competition with the big players in the tech industry in a race to the bottom as cloud storage is rapidly becoming cheap and is sometimes offered for free. The company has attempted to diversify the products it offers. Last year, launching a Google Docs competitor called Dropbox Paper, making its core services simpler and partnering with companies that are a threat to it. Dropbox is doing well compared to its primary competitor, Box, which suffered a 7% drop in shares when the Dropbox’s debut was announced. Although, the company has to work to make itself essential to individuals and businesses in order to move forward.