Slide 1: Company Presentation February 2021
Company Presentation February 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 15.48M paying users 80% of subscribers use us for work 5 *Data as of 12/31/20
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 Project management eSignature Personal privacy Content backup 6
Slide 7: Our Product Portfolio
Our Product Portfolio Individuals Teams Basic Family HelloSign Plus Standard HelloSign API Professional Advanced HelloWorks Enterprise HelloFax 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: Dropbox App Center
Dropbox App Center Discover and connect apps to your Dropbox account Over 40+ apps to choose from across a range of categories Creates a more engaging and higher-value experience with Dropbox 17
Slide 18: Deep Integration Partners
Deep Integration Partners 18
Slide 19: Financial Highlights
Financial Highlights 19
Slide 20: 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 20
Slide 21: 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 22: 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 ($) 22
Slide 23: Q4'20 Financial Highlights
Q4’20 Financial Highlights $140 50% $504 $128 45% $120 40% $100 35% 30% $80 $70 25% $446 $60 25% 20% $40 15% 16% 10% $20 5% $0 0% 4Q 19 4Q 20 4Q 19 4Q 20 Non-GAAP operating margin Revenue ($M) Operating Income ($M) 23 Figures presented are non-GAAP and exclude stock-based compensation expense and ce
Slide 24: Mix-shift to Premium Plans
Mix-shift to Premium Plans % Paying Users on Premium Plans 20% 5x Increase in the attach rate of users to premium plans 4% 1Q '18 4Q '20 *Note: Figures exclude HelloSign. Premium plans refer to Dropbox Professional and Dropbox Advanced. 24
Slide 25: Operating Leverage
Operating Leverage Proprietary Infrastructure Virtual First Workforce Optimization 25
Slide 26: 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+ 26 *Note: Margi
Slide 27: Appendix
Appendix 27
Slide 28: Dropbox Subscription Plans
Dropbox Subscription Plans 28
Slide 29: HelloSign Subscription Plans
HelloSign Subscription 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 Star
Slide 30: 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 31: 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 Impairment related to real estate assets Impairment related ta real estate assets margin Income (loss) from o
Slide 32: Non-GAAP reconciliation
Non-GAAP reconciliation Twelve months ended - 2019 Amortization of Stock-based Acquisition-related and acquired intangible GAAP compensation other expenses assets Non-GAAP Gross profit $ 12503 $ 58 $ - $ 3.4 1,269.5 Gross margin 75% 1% - - 76% Research and development 662.1 (147.6) (14.5) - 500.0 Re
Slide 33: 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 - 2018 Employer pa
Slide 34: Non-GAAP reconciliation
Non-GAAP reconciliation Twelve months ended - 2020 2018 2019 Net cash provided by operating activities S Capital expenditures Free cash flow S 2020 4254 § 5285 § 570.8 (63.0) (136.1) (80.1) 362.4 $ 3924 § 490.7 34
Slide 35: Non-GAAP reconciliation
Non-GAAP reconciliation Three months ended December 31, 2019 December 31, 2020 Loss from operations - GAAP s (6.6) $s (346.6) Stock-based compensation 69.3 69.4 Acquisition-related and other expenses 4.5 4.2 Amortization of acquired intangible assets 2.3 2.4 Impairment related to real estate assets
Slide 36: 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 Generol and administrative margin Impairment related to real estate assets Impairment related to real estate assets mar
Slide 37: Non-GAAP reconciliation
Non-GAAP reconciliation Three months ended December 31, 2019 Amortization of Stock-based Acquisition-related and acquired intangible GAAP compensation other expenses assets Non-GAAP Gross profit $ 341.1 $ 4.0 $ - $ 0.9 346.0 Gross margin 76% 1% - - 78% Research and development 176.9 (40.5) (4.1) = 1
Slide 38: Dropbox
=> Dropbox