The company generates revenue entirely from the sale of subscriptions to its platform, this results in repetitive business for Dropbox and provides strong visibility and predictability in the revenue stream. Subscription-based, scalable business model with strong economic moat Dropbox is expected to benefit strongly from the growing demand for data storage solutions. As per the report published on, the data storage market is expected to grow at a strong CAGR of 32.3% from 2021 to 2026. Increased adoption of the cloud, the rising number of IoT devices, and the age of data abundance have led to strong growth for data management and data storage solutions. Nearly 50% of the revenue is generated from customers outside the USA. It also has 500,000+ paying business teams on its platform that operate across various industries. It has 700Mn registered users, which includes 15.5Mn paid users across 180 countries globally. Brief Overviewĭropbox is a global cloud storage service provider and a collaboration platform. In this article, we’ll discuss Dropbox’s business model, competitive strengths, fundamentals, valuation, and conclude with my opinion. Valuation with a Forward P/E multiple of 20 times is highly attractive for a robust company like Dropbox. The company has a highly sustainable business model surrounded by strong economic moats and it has ample resources to continue fueling top-line growth.

( NASDAQ: DBX) has consistently delivered strong top-line and bottom-line performance and is one of the largest file hosting & sharing service providers. Photo by funky-data/iStock Unreleased via Getty Imagesĭropbox, Inc.

Dropbox inc. starting as a company