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by cop359 5206 days ago
Out of curiosity, does anyone have any info on if Dropbox is profitable?

I personally don't know anyone who actually pays for more space. Most people that use it are not tech savy and I don't think would take the leap to start paying monthly for virtual space. If I had to guesstimate, I'd say maybe 2% of users pay; but that's purely on gut feeling.

I feel like their business model is like Youtube: ie. provide massive amounts of storage and make very little money per GB stored (last I heard Google isn't making much money off of that). It's the "new" traffic + users = success. Not profits - costs = success.

The fact that they didn't sell themselves to Apple seems to suggest that they have higher hopes... Or maybe they're waiting out for a higher bid.

1 comments

Yes, Dropbox is profitable. I believe their numbers are particularly high for a freemium model, more than 2%.

They've said quite a bit that don't plan on getting acquired, all signs point to them going public.