Short answer
Dropbox Inc (DBX) filed its fiscal 2018 10-K annual report with the SEC on Feb 25, 2019. It reported revenue of $1.4B (+25.7% year over year) and net income of −$485M.
- Top risk flagged: GDPR, California Consumer Privacy Act, and Brexit data-transfer uncertainty, requiring costly changes to privacy practices
FY2018 key financial metrics · XBRL
- Revenue
- $1.4B
- +25.7% YoY
- Net income
- −$485M
- −334.1% YoY
- Operating margin
- -35.5%
- −25.2 pp YoY
- Gross margin
- 71.6%
- +5.0 pp YoY
- ROE
- -71.6%
- +36.9 pp YoY
- Operating cash flow
- $425M
- +28.8% YoY
Source: XBRL data from the Dropbox Inc (DBX) FY2018 10-K on SEC EDGAR. USD.
Dropbox Inc FY2018 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Collaboration platform monetized through subscription plans, combining viral self-serve adoption with targeted enterprise sales
- HelloSign acquisition, Paper and Smart Sync emphasized as expanded document workflow and collaboration capabilities
- Strategic repositioning from file synchronization toward reducing “work about work” across fragmented tools
- 12.7 million paying users and over 400,000 paying Dropbox Business teams as of December 31, 2018
- 2018 IPO, with Class A shares listed on NASDAQ under DBX in March 2018
Management Discussion & Analysis
- Revenue $1,391.7M, up $284.9M or 26% YoY, driven by 16% paying-user growth and higher-priced plans
- Gross margin 72% vs 67%; operating margin negative 35% vs negative 10%, reflecting $650.1M stock-based compensation
- Best performer: paying users, 12.7M vs 11.0M; worst: net loss $484.9M vs $111.7M
- Operating cash flow $425.4M; free cash flow $362.4M; capital expenditures $63.0M
- IPO proceeds $746.6M; no buybacks or dividends disclosed; future risk from infrastructure and headquarters investment reducing FCF percentage
Risk Factors
- GDPR, California Consumer Privacy Act, and Brexit data-transfer uncertainty, requiring costly changes to privacy practices
- International exposure: paying users across 180 countries, approximately half of revenue outside the United States
- Infrastructure concentration: custom-built co-location facilities and Amazon Web Services, with limited control over datacenter operations
- Competition from Amazon, Apple, Google, Microsoft, and Box, including lower-priced or bundled alternatives
- Net losses $484.9 million and accumulated deficit $1,659.5 million, alongside $1,394.9 million contractual commitments
Generated from the filing text; verify against the original. How to read a 10-K
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