Dropbox Shares Jump More Than 40% After Highly-Anticipated IPO
People are still talking about Dropbox. It had a stunning debut on the Nasdaq when it sold its shares to the public for the first time last week. It was one of the few bright spots in an otherwise gloomy market and the biggest technology initial public offering since Snap’s IPO a year ago.
The San Francisco-based company got its start in 2007 as a free service to share and store photos, music, and other large files. At the stock’s opening price, Dropbox had a market valuation of more than $12 billion. Investors shrugged off that the company has never posted a profit in all those years. But with more than $800 million in new money, there is plenty of investor optimism that the profits will be coming in soon.
So what happens next? CEO Drew Houston tells Fortune that Dropbox is expanding into business software and targeting large enterprise companies. It’s an intensely competitive field with powerful players like Google, Apple, and Microsoft. But Houston is confident about Dropbox’s future. “We’ve always been in a competitive environment even going back to 2011,” he says, “and since then we’ve added a billion in revenues.”
The next big push at Dropbox, explains Houston, is designing a more “enlightened way of working.” What does that mean exactly? “Instead of having my stuff in ten different places, I have it in one place,” says Houston, adding that it won’t be long before people will be saying, “Thank God for Dropbox because it makes my life easier at work.”
Watch the video above for more from our interview with Houston.