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The author's analysis of Dropbox's S-1 is that they are a cash machine and possesses a magical business model. He argues that anyone who concludes otherwise doesn’t understand the difference between cash flow and GAAP and the power of negative churn.

  • JB

    Joseph Bentzel

    almost 2 years ago #

    Additional view here. I suspect we will see lots of community insight around the Dropbox IPO. It's a big industry event, and Dropbox is far and away the most discussed growth model in the community.

    But seeing its Income Statement in the S1 IPO filing is a big deal. It does two things.

    First it separates true growthhacking of the Ellis type from bad, non-permissioned B2C marketing applied to B2B. You don't get good revenue efficiency of the Dropbox type with bad user marketing. So the 'product-centered' growth mantra has numbers like those from Dropbox--while a cargo cult B2C approach looks more like a dead company you'd find on Startups Anonymous.

    Second it shows that Dropbox is not an NIH company who approaches its growth model as a cult. In fact, Dropbox has a multi-layered, multimodal growth model engaging users, developers, incumbent partners, and enterprise accounts. They are radical pragmatists who pay attention to the wider landscape.

    Turns out this pragmatic approach has made Dropbox the most revenue efficient SaaS company EVER. No small thing given the huge burn we're seeing in sales/marketing spend for enteprise SaaS. My two cents.

    https://growthhackers.com/articles/what-growthtone-looks-like-notes-on-the-dropbox-ipo-filing

  • GH

    Glen Harper

    almost 2 years ago #

    Saw a few more s-1 analyses that add more color (and in some cases overlap as well)
    http://tomtunguz.com/dropbox-s-1/
    https://stratechery.com/2018/the-dropbox-comp/

  • RO

    Remen Okoruwa

    over 1 year ago #

    Great analysis. Another great analysis to check out from the Acquired podcast: http://www.acquired.fm/episodes/2018/3/25/season-2-episode-5the-dropbox-ipo

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