It's a huge opportunity but hard to leverage with lots of competition from similar platforms like OneDrive from Microsoft ( MSFT), Google Drive from Alphabet ( GOOG, GOOGL), and Box ( BOX). The conversion rate in 2018 was roughly the same, with 500M+ users and 12.3M paying users. It introduced a lower-priced 'Backup' plan and worked on the user experience. Dropbox takes initiatives to monetize these free users. One remarkable aspect is the total user base of 700M+ registered users, of which only 17.09M are paying users. Succeeding will be crucial for a revaluation of the shares. Its guidance of $2.32B to $2.33B in revenue for 2022 implies an expected growth rate of 7.5%-another slowdown after it experienced only a slight pandemic boost.ĭropbox looks at new ways to incite faster growth. Slowing Growthĭropbox's top-line growth slowed significantly over the past couple of years. We’re on a mission to unleash the world’s creative energy by designing a more enlightened way of working. To quote Dropbox from their investor website,ĭropbox is a leading global collaboration platform that’s transforming the way people and teams work together. It also focuses on digital content creators with new capabilities and tests digital shops. It's expanding into electronic signing and document sharing. It's primarily used as a free service by individuals and offers plans for more storage capacity and businesses. It has unraveled from a growth stock to a value stock.ĭropbox offers cloud storage services in various forms. Slowing growth has made the share price go nowhere since its 2018 IPO at $21 per share. It produces a significant amount of free cash flow ('FCF') and expects to increase the FCF at a decent rate. ( NASDAQ: DBX) is a cheaply valued tech company. Funky-data/iStock Unreleased via Getty Imagesĭropbox, Inc.

Dropbox stock buyback