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So when is Dropbox actually going to be profitable? If you have 45 million users and you can't be self-sufficient then maybe the business model doesn't work.
by DonnyV 15y ago
So when is Dropbox actually going to be profitable? If you have 45 million users and you can't be self-sufficient then maybe the business model doesn't work.
- thematt 15y agoWho said they're not? Also, if there is any business that benefits from economies of scale, it's this one. Storage (and it's associated cost) scales very well as your user base skyrockets.
- skymt 15y agoAccording to the current Forbes profile, Dropbox is already profitable, though it's not revealed exactly how profitable they are. > The 50-million-user figure is up threefold from a year ago, and it has solved the “freemium” riddle, with revenue on track to hit $240 million in 2011 despite the fact that 96% of those users pay nothing. With only 70 staffers, mostly engineers, Dropbox grosses nearly three times more per employee than even the darling of business models, Google. Houston claims it’s already profitable but won’t reveal margins. http://www.forbes.com/sites/victoriabarret/2011/10/18/dropbox-the-inside-story-of-techs-hottest-startup/ http://www.forbes.com/sites/victoriabarret/2011/10/18/dropbo...
- DonnyV 15y agoI just figured with 45 million users why would you need $250 million.
- Maakuth 15y agoOf course if they're profitable, with that kind of user base they could keep growing organically. Perhaps they see some potential strategic investments that would give them lasting competitive edge, and that need big money.