Its model of attracting paying consumer users through a pair of premium plans alongside business sales has generated a ton of revenue, as well as potential up-sell opportunities going forward.
The stock will trade under the ticker symbol DBX.
"With over a $1 billion in revenues it speaks to Dropbox's success over the past few years and is an impressive number in a fertile space", said Daniel Ives at research firm GBH Insights.
Starting in 2015, Dropbox began to move users of its file-storage service away from AWS's S3 storage service and onto its own custom-designed infrastructure and software, and the cost benefits were immediate. That amount is a placeholder and is likely to change. Steve Jobs, the late founder and CEO of Apple, once vowed to destroy Dropbox with iCloud.
In its regulatory filing, Dropbox reported 2017 revenue of $1.11 billion, up 31 percent from $844.8 million a year earlier.
Dropbox boasts about 500 million registered users, but a lot of them don't pay for its service.
Chief Executive Officer Drew Houston received restricted shares worth $109.6 million, according to the company's registration statement for an IPO filed Friday.
Exact pricing on the shares will arrive in the upcoming weeks from Goldman Sachs and JPMorgan Chase, who are leading this IPO. "This is the world we want to live in". A smaller competitor, Box Inc., went public at $14 per share two years ago and the stock shot to $23.23 in its first day of trading.
The IPO, which would provide an exit more than a decade after Dropbox was founded, also could spur other large "unicorns" ranging from Uber Technologies Inc.to Pinterest Inc.to test the waters.
The three earn base salaries of $400,000 and have cash bonuses with annual targets of $260,000. Snap Inc. gave CEO Evan Spiegel shares worth $636.6 million as the firm went public past year. Or is it more like Atlassian, the successful workplace collaboration company that offers a more friendly point of comparison for Dropbox investors?