Re:Dropbox Amendment to Form S-1
by cletus on Monday March 12, 2018 @11:23AM
(#16568722)
Yeah I just did the math on this (systems of simultaneous equations FTW) and this comes out to almost 17% class A and 83% class B.
So we have:
- 36M class A shares @ $18/share = $745m
- $100m of class A shares at the IPO price in a private placement. This is roughly 5.55m shares and how the figure gets to 41m shares and change
- I don't know how many unissued class A shares there are but given that there are 41.5m being issued, this implies there are AT LEAST 245m class B shares outstanding, which seems... kinda high.
- Additionally, Dropbox has raised >$1.7b in VC [1] over the last decade. What class of shares have these investors gotten? B or A? If it's A then there are a whole lot more B shares outstanding. If it's B then that too is curious.
Unless we're misunderstanding what 98% of the voting power means here?
EDIT: Oh there's a table ("THE OFFERING").
- 26.8m class A shares being issued it looks like?
- 9.2m class A shares being offered by existing stockholders.
- It's unclear to me if the Salesforce private placement is from existing stockholders or a new issuance.
- 53.7m outstanding class A shares after this offering;
- 339.3m (!) outstanding class B shares
- 5.4m outstanding options to purchase class A shares
- No outstanding class C shares after this offer. One wonders what class C was. Stapled shares to class B that converted to A?
So it looks like this would value Dropbox at close to $8b (393m outstanding shares plus the options plus 30-35m shares IPOed).
For a gross profit for 2017 of $737m (from $1.1b in revenue; that's one hell of a profit margin) that all looks pretty healthy. In fact, i wonder why the price is as low as it is? Although they are spending that on R&D and the like.
EDIT2: Ya know, I realize commenting on downvoting is not a thing here but I have to ask: why on earth is this getting downvoted??
So we have:
- 36M class A shares @ $18/share = $745m
- $100m of class A shares at the IPO price in a private placement. This is roughly 5.55m shares and how the figure gets to 41m shares and change
- I don't know how many unissued class A shares there are but given that there are 41.5m being issued, this implies there are AT LEAST 245m class B shares outstanding, which seems... kinda high.
- Additionally, Dropbox has raised >$1.7b in VC [1] over the last decade. What class of shares have these investors gotten? B or A? If it's A then there are a whole lot more B shares outstanding. If it's B then that too is curious.
Unless we're misunderstanding what 98% of the voting power means here?
EDIT: Oh there's a table ("THE OFFERING").
- 26.8m class A shares being issued it looks like?
- 9.2m class A shares being offered by existing stockholders.
- It's unclear to me if the Salesforce private placement is from existing stockholders or a new issuance.
- 53.7m outstanding class A shares after this offering;
- 339.3m (!) outstanding class B shares
- 5.4m outstanding options to purchase class A shares
- No outstanding class C shares after this offer. One wonders what class C was. Stapled shares to class B that converted to A?
So it looks like this would value Dropbox at close to $8b (393m outstanding shares plus the options plus 30-35m shares IPOed).
For a gross profit for 2017 of $737m (from $1.1b in revenue; that's one hell of a profit margin) that all looks pretty healthy. In fact, i wonder why the price is as low as it is? Although they are spending that on R&D and the like.
EDIT2: Ya know, I realize commenting on downvoting is not a thing here but I have to ask: why on earth is this getting downvoted??
[1]: https://www.crunchbase.com/organization/dropbox#section-lock...