Slide 1: Dropbox Company Presentation August 2020
»@ Dropbox Company Presentation August 2020
Slide 2: Safe harbor Statement
Safe harbor Statement This presentation contains forward-looking statements. These statements may relate to, but are not limited to, expectations of future results of operations or financial performance of Dropbox, Inc. (“Dropbox,” “we,” “us,” or similar terms), certain key financial and operating m
Slide 3: Keeping files in sync, keeping teams in sync
Keeping files in sync Keeping teams in sync Cloud storage re ) Smart Workspace 2007 lg Today Qa Content management Collaborative apps Pe Backup & sync File sharing Shared folders Professional sharing aA 3 Project management Document workflow
Slide 4: Dropbox today
Dropbox today We’re a business software company that defies traditional boundaries We’re a smart workspace for the world’s digital content We have a rare combination of virality, scale, and cash generation We have a long runway for growth
Slide 5: Global collaboration platform at scale
Global collaboration platform at scale GOOM+ registered users SSOB+ pieces of content 15.0M paying users 80% of subscribers use us for work
Slide 6: Package Design
Package Design Materials Reseae e 3 @ shipping 2 ] Gd Pepe studio inc. BF shang@...cioine.com ch in Package Design Package Design We've narrowed our new package designs down to three final options. Please review all three pinned files below. Preser to marketing Approve production schedule Final conc
Slide 7: 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 8: Targeted outbound
Targeted outbound “expand” Full deployment
Slide 9: Open ecosystem
Open ecosystem Enterprise Media + Sales + Project apps Design Marketing management fF @ oa SAP Qautopesk HubSppt a oe 7 A? WN Adobe = Szendesk =A ATLASSIAN ORACLE vimeo Bons Wrike DocuSige... M4 @Hootsuite’ ¥ smartsheet UoOo Content management NINTEX Microsoft Azure G& SharePoint @OwIDEN se Producti
Slide 10: Hybrid infrastructure: Scale, Agility, & Innovation
Hybrid infrastructure: Scale, Agility, & Innovation Seattle lew York Hillsboro Ashburn ic Palo Alto Madrid oa Tokyo a Hong Kong Atlanta Miami San Jose Los Angeles Singapore Cer @ ror @ fuvie
Slide 11: Growth drivers
Growth drivers Execute Innovate Convert New product experiences Drive registered users to Leverage scale and user become paying users on insights to enhance existing Individual and Team plans products and drive adoption of new ones Upsell Expand ecosystem Prompt existing paying users to upgrade to p
Slide 12: Product highlights
Product highlights
Slide 13: The New Dropbox
The New Dropbox Brings together cloud content and Customer Proposal traditional files in one place Brings tools together by integrating with best-of-breed apps Brings people together by transforming folders into rich workspaces ‘Team highlights
Slide 14: Dropbox Transfer
Dropbox Transfer 5 files from Company Inc. Easily and securely share large files and folders Recipients can view, download, and comment on Transfers ‘Save to my Dropbox Download Senders receive analytics and real- time notifications around file activity Note: Size of Transfers varies based on Dropbo
Slide 15: Dropbox Passwords
Dropbox Passwords Store and sync passwords across all devices Accounts Easily sign in from anywhere ee domes Zero-knowledge encryption keeps Goze users’ data secure Accounts Dropbor and Facebook ® N
Slide 16: Home
Home a2@ iT © voui ror Jacob's Passport
Slide 17: Dropbox
Dropbox G3 My Computer My computer | Desktop {| Documents | Downloads 3 My Computer Desktop Documents Downloads
Slide 18: Dropbox Family
Dropbox Family Keep your family’s digital lives connected Create both shared and personal spaces Support up to 6 members in one plan
Slide 19: Dropbox App Center
Drobox App Center 33 App Center gk Discover and connect apps to <> <> your Dropbox account < SS Collections Q Search apps Over 40+ apps to choose from across a range of categories . . st. Creates a more engaging and higher- Oo a value experience with Dropbox A (il Manage
Slide 20: HelloSign Native Integration
HelloSign Native Integration Sign, send, and receive documents all without ever leaving Dropbox Manage an entire end-to-end workflow within Dropbox HelloSign is now the primary eSignature tool for Dropbox users conboarding nda.pdt NON-DISCLOSURE AGREE! Ment a onboarding_nda.pdf Details
Slide 21: Deep integration partners
Deep integration partners Google AY Adobe Zoom ae slack ME Microsoft sA ATLASSIAN BetterCloud
Slide 22: Slack integration
Slack integration Start Slack conversations from Dropbox Share content to Slack from Dropbox & Prom mageO2ipg nad QO Share file in Slack BAD BED cvrwine ~ 0 eS ments Activity 42 Promo_Image02,jog ait #Marketing ® G Peele Zora
Slide 23: Zoom integration
Zoom integration Start Zoom meetings from Dropbox : aa: 6 Kimberly Williams Shared meetings Design Sync Meeting 7 (@ Make it a Zoom meeting h Present Dropbox content via Zoom < 0° EME o e coe SS) mK Present in Zoom
Slide 24: Data protection & orchestration
Data protection & orchestration $ Dropbox + ~ BetterCloud Automated workflows for account capture, onboarding, & offboarding Data loss prevention New add-on SKU sold by DBX
Slide 25: Financial highlights
Financial highlights
Slide 26: Annual revenue and non-GAAP operating income, 2017-2019
$1,661 $205 $170 $1,392 12% 12% $1,107 $60 5% 2017 2018 2019 2017 2018 2019 Figures presented are non-GAAP and exclude stock-based compensation expense and certain non-recurring adjustments. See appendix for non-GAAP reconciliation.
Slide 27: 2Q 2020 revenue and non-GAAP operating income
$467 $96 21% $402 $40 10% 2Q 19 2Q 20 2Q 19 2Q 20 Figures presented are non-GAAP and exclude stock-based compensation expense, amortization of acquired intangibles, and HelloSign acquisition-related expenses. See appendix for non-GAAP reconciliation.
Slide 28: 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+ Note: Margin framework excludes one-time deal-related i
Slide 29: Appendix
Appendix
Slide 30: Dropbox pricing: Individuals and Teams
Individuals Teams Basic Plus Professional Standard Advanced Enterprise Free $11.99 / month $19.99 / month $15.00 / user / month $25.00 / user / month Negotiated pricing $119.88 / year $199.00 / year $150.00 / user / year $240.00 / user / year 3 users minimum 3 users minimum Everything in Plus Everyt
Slide 31: 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 32: HelloWorks pricing plans
SMB Mid Market ENT 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 Unl
Slide 33: 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 34: Income from operations reconciliation, twelve months ended 2017-2019
Twelve months ended 2017 2018 2019 Loss from operations - GAAP $ (113.7) $ (494.0) $ (80.5) Stock-based compensation 164.6 650.1 261.2 Donation of common stock to the Dropbox Foundation 9.4 - - Employer payroll taxes related to the release of two-tier RSUs - 13.9 - Acquisition-related and other expe
Slide 35: 2019 GAAP to non-GAAP margin 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% 1% 0% 0% 76% Research and development 662.1 (147.6) (14.5) - 500.0 Research and devel
Slide 36: 2019 free cash flow reconciliation
Twelve months ended - 2019 Net cash provided by operating activities $ 528.5 Capital expenditures (136.1) Free cash flow $ 392.4
Slide 37: Three months ended income from operations reconciliation
Three months ended June 30, 2019 June 30, 2020 Income (Loss) from operations - GAAP $ (34.0) $ 12.8 Stock-based compensation 68.1 76.6 Acquisition-related and other expenses 4.1 4.4 Amortization of acquired intangible assets 2.3 2.4 Income from operations - Non-GAAP $ 40.5 $ 96.2
Slide 38: Dropbox
=> Dropbox