Dropbox $1 Bln Run Rate Justifies Private Valuation

Dropbox has achieved a $1b run rate in just 8.3 years – that makes it the the fastest SaaS company to hit this elusive milestone. What’s more, they’ve temporarily put to rest critics who have slammed their private valuation of $10 billion set in late 2014 as a result of a $350m series C.

This latest round of financial disclosures reveals that their strategy has pushed them ahead of their leading competitor, Box, whose run rate hovers near 500m for 2017. Box, founded in 2005, has taken 12 years to achieve this run rate and, as of writing, has a $2.25B market cap.

When Dropbox IPOs this year, we’ll see what kind of value multiplier the market will award the company for outperforming Box handily. 2017 will be a critical year for the series C investors who will want to see, at minimum, a $1.4b run rate by 4Q17. Anything short of that will require clear forward guidance by leadership on how they plan to achieve and maintain y-o-y growth rates to hit $10b market cap in the next several years.

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