Dropbox Files For A $500M IPO, Doesn't Break Out Channel Details

Dropbox, one of the hottest providers of online storage and file sync and share technology, has filed for an initial public offering in hopes of raising up to $500 million.

Dropbox, in its S-1 filing with the Securities and Exchange Commission, did not list an IPO date in the paperwork, so the actual amount raised and the company's valuation is subject to change.

Dropbox declined to provide additional comment beyond what's in the S-1.

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In its filing, Dropbox said it has over 500 million total registered users that are storing some 400 billion pieces of content.

Dropbox has more than 11 million paying customers and it includes in those numbers all the members of a Dropbox Business team. A user with a paid individual subscription, who is also part of a Dropbox Business team, would count as two paid users. In fact, the company said over 40 percent of its new Dropbox Business team customers include a member who previously subscribed to an individual paid plan.

Dropbox, founded in 2007, reported 2017 revenue of $1.11 billion, up from $844.8 million in 2016 and $603.8 million in 2015. The company reported a net loss for 2017 of $111.7 million, down from $210.2 million in 2016 and $325.9 million in 2015.

The company will use its IPO proceeds to run and expand its business, and it might make acquisitions, too. "Additionally, we may use a portion of the net proceeds we receive from this offering to acquire businesses, products, services, or technologies. However, we do not have agreements or commitments for any material acquisitions at this time," the company wrote.

Dropbox has a channel program, although the company declined to say how many channel partners it has signed. Partners can sign up through distributors like Ingram Micro and Synnex, or via Dell Technologies.

Dropbox indirectly addressed the need for channel partners in the S-1 filing, citing the fact that many of its actual and potential competitors have some advantages over the company including access to resellers.