>> Silicon Valley favorite, Dropbox has set the terms for its much anticipated IPO, valuing the company at $7 billion. That's less than the $10 billion valuation it was given in earlier funding rounds. Reporter Heather Somerville is following the story.>> This isn't a reflection of Dropbox struggling or investors being particularly cautious about Dropbox.
In fact, investors are pretty excited about the company has $300 million in free cash flow last year. But what this reflects is how out of hand evaluations got in the 2014, 2015 period.>> The San Francisco based company, which allows users to share and store files has yet to be profitable, reporting a loss of about $112 million in 2017.
However, its revenue jumped more than 30% last year to $1.1 billion. Dropbox is one of the year's biggest tech IPOs and could set the tone for other high flying companies like Uber and AirBnB, which also won eye popping valuations in the private market.>> There's a lot of other companies that during this time frame, again 2014, 2015, raised a ton of money at a really high valuation.
Airbnb, Uber, just to name a couple. So how Dropbox performs what valuation it gets will really signal how close these other companies will come to their private market valuation. So far, based on the news today, it seems that public market investors are not going to match those really high private market valuations.
>> It already has one buyer. Salesforce will snap up $100 million of stock. Dropbox plans to list on the NASDAQ under the symbol DBX.