Dropbox CEO Drew
Houston
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  • Dropbox has filed IPO paperwork with the SEC
    confidentially, according to a Bloomberg report.
  • The company plans to list shares in the first half of
    2018.
  • Its last known valuation of $10 billion was during a
    2014 funding round.

Dropbox, the cloud computing storage company valued at $10
billion, has confidentially filed the paperwork for an IPO,
according to a
Bloomberg report on Thursday citing anonymous sources
.

The IPO is expected in the first half of 2018, Bloomberg
reported, marking the first high-profile tech listing of the
year, and coming on the heels of
Snap’s disappointing IPO
in 2017. Uber, the most highly
valued private tech company, is not expected to go public until
2019.

San Francisco-based Dropbox had been expected to list shares in
an offering this year, after news surfaced last year that it

had retained investment bank Goldman Sachs
. Bloomberg said
that JP MorganChase has also been tapped to serve as a lead
underwriter on widely anticipated IPO. 

Dropbox says that more than 500 million people use its online
software service, which allows consumer and business users to
save documents in the cloud and access them from any device.
Dropbox for Business, the premium product aimed at business users
and considered its most important business going forward, has
200,000 customers the company says on its website.

Dropbox was not immediately available for comment.

“Cash is oxygen”

Dropbox’s financials results are not publicly known, but the
company said in January 2017 that it was on track to
generate $1 billion in revenue on an annualized run rate
. CEO
Drew Houston said in June 2016 that
Dropbox was “cash flow positive,”
an important gauge of
financial health followed by Wall Street. But that doesn’t
mean Dropbox’s business is profitable on a net basis yet.

“Cash is oxygen,” Houston said in an onstage interview at
the time. “Even just being a dollar cash flow positive is a
really critical threshold because it lets you control your
destiny.”

The company’s last reported valuation of $10 billion came during
a venture capital funding round in 2014.

If the company were to IPO at that valuation with $1 billion
revenue, it would fetch a 10X revenue multiple. That’s richer
than the 8X multiple that Box,
Dropbox’s closest competitor in the enterprise business,
fetched during its 2015 IPO
.

Dropbox has been steadily building out its senior management team
as it moves towards its market debut, bringing on experienced
hands like
former Google executive Dennis Woodside as COO
and former
Twitter product boss Todd Jackson, as its head of product.

Business Insider spoke to Dropbox CEO Drew Houston in May. Listen
to the interview here:

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