Dropbox, Inc. · NASDAQ:DBX
Dropbox — Investor Presentation (May 2021)
39 slides from Dropbox's investor presentation, May 2021
Slide 1: Company Presentation May 2021
Company Presentation May 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements. These statements may relate to, but are not limited to, plans for growth, technological capabilities and new features and products and long-term financial targets of Dropbox, Inc. (“Dropbox,” “we,” “us,” or similar terms),
Slide 3: Business Overview
Business Transaction Summary Overview 3
Slide 4: Dropbox Today
Dropbox Today Leader in file sync and share Smart workspace for digital content collaboration Addressing individual and team workflows Leveraging virality and scale in go-to-market Balanced growth and cash flow generation model 4
Slide 5: Global Collaboration Platform at Scale
Global Collaboration Platform at Scale* 700M+ registered users 550B+ pieces of content 15.83M paying users 80% of subscribers use us for work 5 *Data as of 3/31/21
Slide 6: Keeping Files in Sync Keeping Teams in Sync
Keeping Files in Sync Keeping Teams in Sync Cloud storage Smart Workspace 2007 Today Backup & sync Team collaboration File sync and sharing Content management Professional sharing Secure sharing and analytics Project management eSignature Personal privacy Content backup 6
Slide 7: Our Product Portfolio
Our Product Portfolio Individuals Teams Basic Family HelloSign Personal Plus Standard HelloSign API Standard Professional Advanced HelloWorks Advanced Enterprise HelloFax Enterprise 7
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 8
Slide 9: Efficient Go-to-Market
Efficient Go-to-Market eal Expand Adopt organically Land within companies Expand within companies Deploy fully a Se a8 n'a ‘ec as a 222 232 As?
Slide 10: Growth Drivers
Growth Drivers Execute Innovate Convert and Retain New product experiences Drive registered users to become paying Leverage scale and user insights to enhance users of Individual and Team plans existing products and drive adoption of new ones Upsell Expand into workflows Prompt existing users to upg
Slide 11: New Products and Features
New Products and Features Transfer Vault 11
Slide 12: New Products and Features
New Products and Features Passwords Backup 12
Slide 13: Growing Portfolio of Add-on Products for Teams
Growing Portfolio of Add-on Products for Teams • Automated workflows for account capture, onboarding & off-boarding Advanced Team and Content Controls • Data Loss Prevention • Recover any files deleted or changed in the last 10 years Data Governance • Offered with or without Legal Hold capability •
Slide 14: Dropbox Family
Dropbox Family • Organize, centralize and protect your Family content • Enhanced privacy and security features Manage what matters most Keep your family connected Keep sensitive info safe 14
Slide 15: Dropbox Business
Dropbox Business • Organize and centralize content around the needs of your team • Collaborate in shared workspaces and streamline workflows • Secure company data through visibility into content access and sharing Shared team workspace Data governance and audit logs Team management & centralized bil
Slide 16: HelloSign Update
HelloSign Update • Native integration in Dropbox • 70%+ growth in end-user signature requests • 60%+ growth in API transactions • Launched in 21 additional languages • Increasing cross-sell velocity *Note: Growth rates reflect 2019-2020 period 16
Slide 17: DocSend Update
DocSend Update • DocSend is a secure self-serve document sharing and analytics product • Current use cases revolve around content sharing and virtual data rooms for fundraising, M&A, sales and marketing, and investor relations • Similar go to market strategy to Dropbox leveraging self-serve business
Slide 18: Open ecosystem
Open ecosystem 60B+ API calls /month 1M+ registered developers 35% more spent each month by integration MAUs (iMAUs) compared to non-iMAUs 85% of active, paid Dropbox teams have linked a third- party app 18
Slide 19: Deep Integration Partners
Deep Integration Partners 19
Slide 20: Financial Highlights
Financial Highlights 20
Slide 21: Financial Highlights
Financial Highlights Significant revenue and cash flow scale Predictable and balanced financial model Investing for continued revenue growth Driving for strong operating leverage 21
Slide 22: Strong Performance at Scale
Strong Performance at Scale $2,000 100% $1,800 95% $491 79% $1,914 $1,600 90% $450 21% $1,400 76% $400 $1,661 $392 85% $362 $1,200 75% $350 $1,392 80% $300 $1,000 75% $800 $250 12% 70% $200 12% $600 $150 65% $400 $100 $200 60% $50 $0 55% $0 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020
Slide 23: Key Metrics
Key Metrics $128.50 $2,022 $1,811 15.48 14.31 $123.07 $1,510 12.70 $117.64 2018 2019 2020 2018 2019 2020 2018 2019 2020 ARR ($M) Paying Users (MM) ARPU ($) 23
Slide 24: Q1'21 Financial Highlights
Q1’21 Financial Highlights $520 $160 $149 45% $512 $510 $140 40% $500 $120 35% $490 30% $100 $480 29% 25% $470 $80 $73 20% $460 $455 $60 15% $450 16% $40 10% $440 $20 5% $430 $0 0% $420 Q1 20 Q1 21 Q1 20 Q1 21 Non-GAAP operating margin Revenue ($M) Operating Income ($M) 24 Operating income is non-GA
Slide 25: Q1'21 Financial Highlights
Q1’21 Financial Highlights $2,130 $2,112 16.00 $133.50 $2,110 15.90 15.83 $132.55 $132.50 $2,090 15.80 15.70 $131.50 $2,070 15.60 $2,052 15.48 $130.50 $130.17 $2,050 15.50 15.40 $2,030 $129.50 15.30 $2,010 15.20 $128.50 Q4 20 Q1 21 Q4 20 Q1 21 Q4 20 Q1 21 ARR ($M) Paying Users (M) ARPU ($) Current p
Slide 26: Mix-shift to Premium Plans
Mix-shift to Premium Plans % Paying Users on Premium Plans 25% 20% 4x 20% 15% Increase in the attach rate of 10% users to premium plans 5% 5% 0% Q4'17 Q1'21 *Note: Figures exclude HelloSign. Premium plans refer to Dropbox Professional and Dropbox Advanced. 26
Slide 27: Operating Leverage
Operating Leverage Proprietary Infrastructure Virtual First Workforce Optimization 27
Slide 28: Target Model
Target Model Non-GAAP 2019 2020 Long-term target Gross Margin 76% 79% 78 - 80% R&D expense as % of revenue 30% 28% 23– 25% S&M expense as % of revenue 23% 20% 18 – 20% G&A expense as % of revenue 11% 10% 8 – 10% Operating margin 12% 21% 28 – 30% Annual Free Cash Flow $392M $491M $1B+ 28 *Note: Margi
Slide 29: Appendix
Appendix 29
Slide 30: Dropbox subscription plans
Dropbox subscription plans Personal Business Basic Plus Family Professional Standard Advanced Enterprise Free $11.99 / month $19.99 / month $19.99 / month $15.00 / user / month $25.00 / user / month Negotiated pricing $119.88 / year $203.88 / year $199.00 / year $150.00 / user / year $240.00 / user
Slide 31: HelloSign Subscription Plans
HelloSign Subscription Plans FREE ESSENTIAL STANDARD PREMIUM FREE ESSENTIAL STANDARD PREMIUM $0 $15 / user / mo $25 / user / mo $40 / user / mo Build & $75 / mo $250 / mo $400 / mo Test 1 user 1 user Minimum 2 users Minimum 5 users 5 Templates 15 Templates Unlimited Templates our API for 0 Templates
Slide 32: DocSend Subscription Plans
DocSend Subscription Plans Personal Standard Advanced Enterprise For business teams that need best-in- For individuals who want secure sharing For deal management professionals that class document sharing and team For larger teams and document insights need advanced security or integrations manageme
Slide 33: Definitions
Definitions Total Annual Recurring Revenue, (“Total ARR” or “ARR”) – represents the amount of revenue that we expect to recur, enables measurement of the progress of our business initiatives, and serves as an indicator of future growth. We calculate Total ARR as the number of users who have active p
Slide 34: Non-GAAP reconciliation
Non-GAAP reconciliation Three Months Ended March 31, 2020 March 31, 2021 Income from operations - GAAP $ 26.8 $ 42.5 Stock-based compensation 39.8 67.9 Acquisition-related and other expenses 4.2 5.7 Amortization of acquired intangible assets 2.3 2.40 Impairement related to real estate assets — 17.3
Slide 35: Non-GAAP reconciliation
Non-GAAP reconciliation Twelve Months Ended December 31, 2018 December 31, 2019 December 31, 2020 Net Cash provided by operating actitivies $ 425.4 $ 528.5 $ 570.8 Capital expenditures (63.0) (136.1) (80.1) Free cash flow $ 362.4 $ 392.4 $ 490.7 35
Slide 36: Non-GAAP reconciliation
Non-GAAP reconciliation Twelve Months Ended - 2020 Acquisition- Amortization of Impairment Stock based related and other acquired related to real GAAP compensation expenses intangible assets estate assets Non-GAAP Gross profit $ 1,499.3 $ 17.1 $ — $ 3.9 $ — $ 1,520.3 Gross margin 78.3 % 0.9 % — 0.2
Slide 37: Non-GAAP reconciliation
Non-GAAP reconciliation Twelve Months Ended - 2019 Amortization of Stock based Acquisition-related acquired intangible GAAP compensation and other expenses assets Non-GAAP Gross profit $ 1,250.3 $ 15.8 $ — $ 3.4 $ 1,269.5 Gross margin 75.3 % 1.0 % — 0.2 % 76.4 % Research and development 662.1 (147.6
Slide 38: Non-GAAP reconciliation
Non-GAAP reconciliation Twelve Months Ended - 2018 Employer payroll Stock based related to the release GAAP compensation of two-tier RSUs Non-GAAP Gross profit $ 997.0 $ 47.0 $ 1.1 $ 1,045.1 Gross margin 71.6 % 3.4 % 0.1 % 75.1 % Research and development 768.2 (368.2) (8.3) 391.7 Research and develo
Slide 39: Dropbox
=> Dropbox