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Dropbox’s Paying Users Growth (2017 – 2022)

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This statistic highlights Dropbox’s Paying Users Growth from Q1 2017 onwards, on quarter over quarter basis.
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This statistic highlights Dropbox’s Paying Users Growth starting from 2017 to the latest quarter of 2022.

Dropbox is a cloud storage service operated by the American company of the same name. It was founded in 2007 by two MIT students Drew Houston and Arash Ferdowsi as a startup company.

Dropbox offers services like cloud storage, personal cloud, file synchronization, and client software. It has been named one of the best startups in the US, with a valuation of over $10 billion. They have also faced certain issues regarding the security breach and are blocked in China. Dropbox uses a business model where a free account with a fixed storage size and then paid subscriptions are available that offer more storage and other additional features. Free users are given 2 gigabytes of storage space and premium users are given 2 terabytes of storage space and additional features like remote wipe, advanced sharing, etc. They have also come with new products like Dropbox Carousel, which is a photo gallery app, and Dropbox Paper, which is a document editor. Dropbox has three plans, namely:

  • Basic – This is the free plan with 2gb of storage space.
  • Plus – This costs $9.99 per month with 2tb of storage space.
  • Professional – This costs $16.58 per month with 3tb of storage space.

The plus and professional plans both come with all the additional features.

Dropbox is forecasted to increase its revenue and to give better than expected quarterly results owing to the increased number of paying subscribers. Dropbox reported that average revenue per customer went up by almost 6%. Their forecasted revenue for the second quarter of 2019 was 399-400$ million. They also expected their full-year revenue to be somewhere between $1.63 to $1.65 billion with an 11-12% increase in operating profit margins. Dropbox had 12.7 million paying users as of the last quarter of 2018. They almost doubled their number of paying users from 2015 when they had 6.5 million paying users.

Their total revenue as of the fourth quarter of 2019 was $446 million showing a year on year growth of 20%. Annual revenue was about $1.82 billion. Paying users also increased to 14.3 million and average revenue per user increased from $119.61 to $125.00. Dropbox also said that its deferred revenue, which is a measure of the future of the business, came to $541.1 million.

It beat the market expectations for its last quarter of 2019 due to growth in its customer base, but the share prices did not move much. Dropbox revamped its desktop app in the early quarters of 2019. The new app comes with a service called Dropbox Spaces, which allows users to create shared team workspaces that connect not just files but tasks and meetings as well. Dropbox can turn things around for themselves in the coming years by continuing with the current growth and also the technological advancements can aid them in this process.

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