- Dropbox is aiming to have its IPO in the first half of 2018, according to reports.
- Analysts aren’t at all surprised, but have a few things at front of mind when it comes to anticipating how Dropbox will do as a public company.
- The market for collaboration tools is huge, analysts say, but Dropbox needs to focus in on appealing to enterprise customers.
Dropbox has earned a consumer-friendly reputation by making it easy for non-techies to store family photos, school homework and other digital knick-knacks on the popular online service it launched ten years ago.
But as the company prepares sell shares to the public in an IPO, it will need to button-up its image and win the favor, and the budgets, of picky business customers, according to analysts who follow the company.
“The simple function of storing content is pretty well commoditized now and most of the people who are going to use that function are already using it,” said Terry Frazier, a research director at industry research firm IDC.
The big growth for Dropbox, he says, will come by providing “increased functionality capabilities for business and enterprise customers.”
Dropbox secretly filed the paperwork for an IPO, according to a Bloomberg report on Thursday.
The IPO has long been rumored to be in the works, and given Dropbox’s last reported private market valuation of $10 billion, it’s expected to be one of the biggest public offerings in tech this year.
Many of the details, including the size and valuation of Dropbox’s planned IPO, are still unknown. The lens through which Wall Street will assess this big tech IPO is not ideal, however: Snap’s much-hyped 2017 IPO has proven disappointing, with the stock now trading below its offering price.