Dropbox has filed for IPO and if you are a (SAAS) founder, you just can’t skip going through the most inspiring IPO of our times.
We have curated 5 key points for you.
Dropbox has over 500 million sales people.
Yes, it is ‘the’ viral product in enterprise space. Dropbox generated over 90% of revenue from self-serve channels. The users are the salespeople for the company.
A true depiction of what platform at scale looks like?
67% Gross Margin!!
For a billion dollar revenue business (okay $1.1Bn to be precise), Dropbox operates at 67% gross margin, which is totally insane.
Our gross margin increased from 54% during 2016 to 67% during 2017, primarily due to a 31% increase in our revenue during the period and our Infrastructure Optimization.
Founding team’s ownership
The two cofounders together own 35% !! (Drew Houston owns 25%, Arash Ferdowsi owns 10%). On an average, founding team owns less than 5% at this scale. Again, Dropbox is an outlier and which is why it is Dropbox.
Free cash flow
Free cash flow has gone from -$64m in 2015 to +$137m in 2016 to +$305m in 2017. That too, keeping the gross margin at 67%. Isn’t this maddening? 🙂
Number of employees
As of Dec 31st, 2017 – Dropbox has ONLY 1,858 full-time employees. Just for comparison, Freshdesk has ~1,120 employees and Zoho has close to 5,000 employees (revenue ~$310mn).
If you are a SAAS founder, go drool over Dropbox S1 filing.