Dropbox's performance could also add weight to the prospects of other members of the tech unicorn club (companies with funding that values them at more than $1bn). Dropbox considered pricing the IPO as high as $22 a share but, partly because of market conditions, tempered it to $21, still above its updated range of $18 to $20. The gradual up movement of Dropbox IPO price per share is in the wake of strong anticipated demand. Early in the trading day, DBX climbed as high as $31.60, marking a gain of as much as 50% over the IPO price. Popular for its cloud-based files storage and syncing service, the company was able to raise a whopping $750 million from the event.
Dropbox reported revenue of $1.11 billion in 2017, up 32 percent from a year earlier.
It's hard to believe because the company still feels new and fresh, but Dropbox was born over 10 years ago, when co-founder and CEO Drew Houston was taking a bus from Boston to New York City, and realized he had forgotten his thumb drive.
The tech company declared itself cash-flow positive in 2016. That represents just over 40 percent growth from the initial price, and gives the company a valuation of over $12.5 billion.
Among them are Spotify AB, which is expected to make its initial offering about April 3. Glaser characterized Dropbox in its current form as more of a commoditized, consumer-focused company than a competitor like Box, which specializes in enterprise storage.
"There's certainly more revenue-stage companies that are still private that are looking at when to go public", said Matt Murphy, a partner with the venture capital firm Menlo Ventures. Its net loss almost halved from $210.2 million in 2016. Members of this exclusive club include Uber but also Stripe, an online payments company founded and led by Irish brothers John and Patrick Collison that is now estimated to be worth more than $9bn.
Dropbox provides a service that lets users store, share and collaborate on documents, photos and other files online.
Like Snap, Dropbox warned prospective investors that it may never be profitable.
Goldman Sachs, J.P. Morgan, Deutsche Bank and Allen & Co. were among the top underwriters for the company's IPO.