“Founded in 2007, Dropbox epitomizes the freemium go-to-market. Dropbox has grown from 0 to 500 million users over that time period. 2% of those users convert to paid and pay an average of $9.33 per month. 90% of revenue originates through self serve channels – an astounding figure for company that generated more than $1B in revenue last year.”
Original source: Dropbox S-1 Analysis – The King of Freemium
“Dropbox made $1.106 billion in revenue in the year ending in December, and lost $111.7 million on a net basis. That was growth of 31% in revenue terms, and an improvement on the bottom line of roughly half the year-earlier losses.”
Original source: Dropbox IPO and financials
“doing over $1B in annualized sales and are cash flow positive.”
Original source: Dropbox files for IPO — and their numbers are looking solid
Currently, Dropbox has 300 million users (and just announced that its users have shared 2.1 billion files and folders), but the number of paying customers for Dropbox for Business is closer to 100,000.
From a piece covering recent “enterprise” functionality in Dropbox.
“Dropbox is super expensive compared to other data storage options.” (via @mims)
See the big ol’ write-up of various options and considerations.
Cloud startups like Dropbox pose a problem because they are viral in their sign-up and billing. This is what has given them a foot in the door at SMBs and the departments of big companies, and resulted in CIOs’ business-collaboration platforms becoming based on Dropbox before they know it.
Also, some good insights into IBM go-to-market thinking around software.
Bottoms up, viral spread still works
Of all the start-ups, though, Dropbox has seemed to enjoy the most meteoric growth. It just reached 200 million users—or about 10 times as many people as it had at the end of 2010. Its revenue has grown 20 fold since late 2010 and is now in the “hundreds of millions of dollars” per year range, say the people familiar with Dropbox’s funding plans.
It’s be cool to know the margins.
Dropbox at “hundreds of millions of dollars” in revenue
“The important thing to understand about Dropbox,” Fried said, “is that when your users use it in a corporate context, your corporate data is being held in someone else’s data center.”
I’m fascinated by this idea of “corporate data.” It makes perfect sense, of course, but as always with IP, it opens up weird cans of intellectual worms if you start to get all pissy.
As one astutely snarky commenter added:
But the quote in the article sounds like precisely [like] the reason for any other company’s CIO to object to storing their data on Google Drive.
Even Google’s CIO clamps down on IT