After 10 years of being in operation, Dropbox finally went public with an IPO yesterday. As of market close, the company’s shares went up by about 36 percent, making Dropbox the biggest tech IPO since Snapchat’s IPO last year. Dropbox is trading under DBX and has a market valuation of $10 billion after the opening day.
The San Francisco-based company currently has about 11 million paying subscribers who use the companies’ cloud storage plans. However, Dropbox’s future will likely be determined by how many businesses can adopt the company’s solutions. Most of Dropbox’s business currently comes from consumer subscriptions, and it faces quite the competition from Google, Microsoft and Apple. While Apple can leverage its massive iPhone sales, Microsoft and Google have been able to put Onedrive and Google Drive (respectively) through their enterprise services, Office 365 and G-Suite, respectively.
"Dropbox is going public at the right time. It has an attractive story to justify its need for financing and the market dynamics are good," Josh Lerner, professor of Investment Banking at Harvard Business School told Reuters. "But at the same time, the environment is also competitive".
Dropbox will also have to bring a more diverse suite of services to keep up with its competitors. And in short, it should be interesting to see the company’s growth from here.