Slide 1: Dropbox Company Presentation May 2020
Dropbox Company Presentation May 2020
Slide 2: Safe harbor Statement
Safe harbor Statement This presentation contains forward-looking statements. These statements may relate to, but are nat limited to, expectations of future feguita of operations or francis! performance of Dropbox, Inc. (Oropbox," “we,” "us," oF similar terme), certain hey financial anc Operating met
Slide 3: Keeping files in sync, keeping teams in sync
Keeping files in sync Keeping teams in sync Cloud storage €® Smart Workspace 2007 Bs Today a Content management Collaborative apps Shared folders Professional sharing a $ Project management Document workflow Backup & sync File sharing
Slide 4: Dropbox today
Dropbox today We're a business software company that defies traditional boundaries We’re asmart workspace for the world’s digital content We have a rare combination of vira lity, scale, an d cash generation We have a long runway for growth
Slide 5: Global collaboration platform at scale
Global collaboration platform at scale 6O00OM+ registered users 550B+ pieces of content 14.6M paying users 80% of subscribers use us for work
Slide 6: Dropbox is building the world's first smart workspace
Dropbox is building the world’s first smart workspace A unified workspace that organizes your content, connects your SaaS tools, and brings teams together Package Design 7 folders, 5 files Name
Slide 7: The smart workspace
The smart workspace oO Dropbox §| Organize rieritize Pers Governance Content Services Work Graph DROPSOK APPS PRODUCTIVITY SUITES RanMUMICATION cocmaiesrion HAMAGEMENT Ecosystem
Slide 8: Reinventing the software playbook
Reinventing the software playbook Traditional playbook What sets Dropbox apart Designed for IT vs. Designed for users Top-down distribution vs. Bottom-up adoption Walled garden vs. Open ecosystem Rip-and-replace vs. Live side-by-side
Slide 9: Efficient Go-to-Market
Efficient Go-to-Market Self-serve Targeted outbound “land” “expand” F Se Nes B S@ «1s \ t 2 8 ¢ a 3 neil ad x fo in 9 @ ®a- Starts with Land within Expand within massive user companies companies adoption
Slide 10: Open ecosystem
Open ecosystem Enterprice Moxie + Sales + Project apps Design Marketing management SARA A swrovesk Hubspxx i & a #2 1 Adobe Rendesk AaTiASSIAN ORACLE —- vimeo 12 Out Wrike Content management NINTEX Micosott Azure BD SharePoint Owiven ietiew Productivity Seourty Comenunications Dotice GDvymwore 42 sl
Slide 11: Hybrid infrastructure: Scale, Agility, & Innovation
Hybrid infrastructure: Scale, Agility, & Innovation SjSSsHroronto London xe) o— EAtow york — Paris —-@) o— iO ashtum Moxtria-@ oo @o—__ eho Beattie Hisnoro Palo AITO SanJose G Atlante Los Arigcios ~~ © Hong Kong @©— Miami Kong © +#—\|_ Singapore QO syaney @ 5" @rr @ BH
Slide 12: Growth drivers
Growth drivers Execute Convert Drive registered users to become paying users on Individual and Team plans Upseil Prompt existing paying users to upgrade to premium plans or purchase additional licenses potential hi Innovate New product experiences Leverage scale and user Insights to enhance existing
Slide 13: Product highlights
Slide 14: The New Dropbox
The New Dropbox Brings together cloud content and traditional files in one place Brings tools together by integrating with best-of-breed apps Brings people together by transforming folders into rich workspaces
Slide 15: DBXi: Machine Intelligence in Action
DBXi: Machine Intelligence in Action Meeting: Weekly Sync s A Surfaces and suggests relevant content CED in 200m mooring Personalizes search based on activity @ Timeline.gsheet = Rich text and image search Your highlights Team highlights A, Michelle Wallace edited Customer Info.gdoc
Slide 16: Dropbox Spaces
& Dropbox Spaces Mantora ine Prajeets » 2020 Customer Proposal Add context to content with descriptions and to-dos Track progress on shared work with notifications Create, view, and resolve comments Recent activity + Sounds good, I'll follow up.
Slide 17: Paper
®@ Paper Paper now lives in the filesystem, next Z| Oropbox to Google & Office docs Create, store, and access Paper docs from Dropbox Branding Project.paper More discoverable to new users
Slide 18: Insights Dashboard
Insights Dashboard 5 Admin Console Simplify team management insights Leverage actionable insights Monitor sharing activity for compliance
Slide 19: HelloSign integration
HelloSign integration Easily sign docs from within Dropbox HelloSign functionality surfaced intelligently based on file-types Best-in-class integration Haeford tye) o>» Sates Customer Proposal -~ | =
Slide 20: HelloSign Admin Console
HelloSign Admin Console T WELLOSION Centralized command center Compile activity and performance reports across sub-organizations Improve document turnaround and completion rates with analytics
Slide 21: Extensions
Extensions Ak Moo: Sand fies and faxes to tearnmates Add fies to chat messages Seamlessly initiate and manage workflows Manage document workflows ) © Edit arxd comment on video content View, edit, and adjust images GG Create designs Submit expenses Bridge siloed tools to reduce toggling Allow users
Slide 22: Dropbox Transfer
Dropbox Transfer Easily and securely share large files and folders Recipients can view, download, and comment on Transfers Senders receive analytics and real- time notifications around file activity Nota: Size of rranatars varios baBed oF Dropbox pion toelo (LOGMB). Pie & Btorelord (RGB), Profession
Slide 23: Deep integration partners
Deep integration ° partners Go gle AN Adobe ZOOM = az Slack BE Microsoft sA ATLASSIAN BetterCloud
Slide 24: Slack integration
Slack integration Start Slack conversations from Dropbox Share content to Slack from Dropbox & rome jmape02ie9 #0D EE 6
Slide 25: Zoom integration
Zoom integration Start Zoom meetings from Dropbox ‘ 00° Em > Kimberly Williams Design Syne Meating Present Dropbox content via Zoom 0° GEE o
Slide 26: Data protection & orchestration
Data protection & orchestration Automated workflows for account capture, onboarding, & offboarding Data loss prevention $3 Dropbox & New add-on SKU sold by DBX BetterCloud
Slide 27: Financial highlights
Slide 28: Financial highlights
Financial highlights Revenue ($M) Operating income ($M) HB Non-aaap operating income 19% yoy growth in 2019 — Non-GAAP operating margin $661 9205 $170 $1392 $1107 dow aoa ao ao 2018 ag Figures preseeted are non-GAAP and exclude eock-based compensation expense and certain non-recurring adjustments, S
Slide 29: Financial highlights
Financial highlights Revenue ($M) Operating income ($M) HB Non-aaap operating income 18% yoy growth in Qv20 — Non-GAAP operating margin $73 $455 $386 1a19 1020 1919 1020 Figures presented are nar GAAP and exclude stock-based compecnation e wzabon cf acquired imtangibles, and ‘acquisition: related ex
Slide 30: Target model
Target model Non-GAAP 2019 Long-term target Gross margin 76% 78-80% R&D expense as % of revenue 30% 23-25% S&M expense as % of revenue 23% 18-20% G&A expense as % of revenue 11% 8-10% Operating margin 12% 28-30% Annual Free Cash Flow $392M SiB+
Slide 31: Appendix
Slide 32: Dropbox subscription plans
Dropbox subscription plans Individuals Basic Plus Free $11.99 / month $119.48 / year Smart Syne Dropbox Rewind Oropbox Transtar Full text search Remote devios wipe Priority ernail support 30 day version history 265 of storage Professional $19.99 / manth $199.00 / yoar Everything in Plus Enhanced Sma
Slide 33: HelloSign pricing plans
Free Pro Business Enterprise* Bronze Silver Gold Enterprise*** 1 user $15 / mo $10 / user $30 / user $99 / mo $249 / mo $449 / mo Negotiated pricing 3 docs / mo 1 user Minimum 5 users Minimum 5 users 50 API calls 150 API calls 450 API calls 1,000+ API calls 1 template Starts at 5 templates Unlimited
Slide 34: HelloWorks pricing plans
HW Free HW 150 HW 250 HW 450 HW 1K+ $0 / mo $299 / mo $399 / mo $699 / mo Negotiated Pricing Up to 100 txns* / mo Up to 150 txns* / mo Up to 250 txns* / mo Up to 450 txns* / mo Starts at 1,000 txns* / mo Unlimited Users/Teams Everything in Free Everything in Mid Market Unlimited Workflows Company Br
Slide 35: HelloFax pricing plans
Free Home Office Professional Small Business Enterprise* 1 user $9.99 / mo $19.99 / mo $39.99 / mo Negotiated pricing 5 pages 5 users 10 users 20 users 20+ users 300 pages / mo 500 pages / mo 1,000 pages / mo Starts at 2,000 pages / mo Everything in Free Everything in Home Office Everything in Profe
Slide 36: Non-GAAP reconciliation
Non-GAAP reconciliation Loss from operations - GAAP Stock-based compensation Donation of common stock to the Dropbox Foundation Employer payroll taxes related to the release of two-tier RSUs Acquisition-related and other expenses Amortization of acquired intangible assets Income from operations - No
Slide 37: Non-GAAP reconciliation
Non-GAAP reconciliation Gross profit Gross margin Research and development Research and development margin Sales and marketing Sales and marketing margin General and administrative General and administrative margin Income {loss) from operations Operating margin Twelve months ended - 2019 Amortizatio
Slide 38: Non-GAAP reconciliation
Non-GAAP reconciliation Twelve months ended - 2019 Net cash provided by operating activities $ 528.5 Capital expenditures (136.1) Free cash flow $ 392.4
Slide 39: Non-GAAP reconciliation
Non-GAAP reconciliation Income {Loss} from operatians - GAAP Stock-based compensation Acquisition-related and other expenses Amortization of acquired intangible assets Income fram operations - Non-GAAP Three months ended March 31, 2019 March 31, 2020 (213) $ 26.8 55.6 39.8 3.3 42 1.4 23 390 § 731
Slide 40: Dropbox
Dropbox