Dropbox Inc (NASDAQ: DBX) stock surged over 19.3% on June 14th, 2018 (as of 12:35 PM GMT-4; Source: Google finance) which is its best performance since the stock went public
Magic Pocket, is the exabyte scale custom infrastructure the group built for all Dropbox products, which is an ongoing platform for innovation. They are constantly seeking opportunities for a better storage density, reduce latency, improve reliability, and lower costs. The group is the first firm to adopt SMR technology, and adding hundreds of petabytes of new capacity with these high-density servers at cheap costs as compared to conventional PMR (Perpendicular Magnetic Recording) drives.
Salesforce.com bought 4.9M shares of the group’s stock during the first quarter which is about 1.3% of outstanding shares.
During the first quarter of 2018, the group has 11.5 million paying users, and expects over 80% use Dropbox for work. They are the fastest SaaS company to a $1 billion revenue run rate and expects a long runway for growth. The group intends to leverage the Content Collaboration market, which is a $50 billion plus opportunity as per IDC estimates. Major revenue growth drivers is a better adoption of their premium plans.
Apart from the premium subscription plans, the group is enhancing products like Dropbox Paper and launched early 2017 to GA, Paper is a collaborative workspace for teams and it’s off to a great start. Dropbox users have formed millions of paper docs in more than 20 languages around the world.
The group continued to make improvements to their data science models to further optimize their growth engine. By applying analytics to certain segments of users who chose to churn or downsell, they deployed customized promotions to win them back.
The group also built a predictive model to determine reseller’s success rates in selling to new customers. With this move they intend to optimize the reseller channel by better targeting new partners. For instance, the shared office space provider has grown its Dropbox deployment 200% since Q3 of 2017, recently expanding its subscription to their platform by a further 500 users.