The cloud-storage company had priced its IPO at $21 a share on Thursday, above its previously expected range.
Dropbox sold 36 million shares in its offering, raising $756 million. Over the years we've seen plenty of tech firms take their companies public (with varying degrees of success), and it was just about this time last year when we witnessed Snap start its IPO with a bang-even if today's price is now below where it started.
The company reported revenue of $1.11 billion in 2017, up from $844.8 million a year earlier. However, the company went on to double revenues, shrink costs and become cash-flow positive, with its stock increasing more than sixfold as a result.
Dropbox's valuation of $7.8 billion to $8.7 billion makes it far from the largest technology company to oversee an IPO in recent memory. To branch out the business scope beyond simple file storage, Dropbox has developed new services such as Showcase, Smart Sync, and collaboration tools such as Dropbox Paper. The company debuted with an initial market cap of over $8B.
Dropbox co-founders Drew Houston (left, center) and Aresh Ferdowski ring the opening bell at the Nasdaq on the day of their IPO.
"We've always lived in a competitive environment. and importantly all our growth has happened in that environment", Houston said. Full-year net loss almost halved from the $210.2 million in 2016. Dropbox faces some tough competition in titans like Amazon, Apple, Google and Microsoft.
Dropbox's initial public offering could pave the way for other unicorns to soon go public, letting their early investors and founders cash in on huge investment gains that now only exist on paper. LLC and J.P. Morgan Securities LLC are joint lead bookrunning managers.
The company has 500 million registered users, 100 million of whom have signed up since the start of 2017, but only 11 million paid users.