Strength in cash balance and free cash flow generating ability hold promise for the company’s growth prospects.įurther, ongoing momentum in remote work wave due to the ongoing pandemic is driving demand for cloud storage, which is likely to have led to incremental adoption of the Dropbox platform in the first quarter. Management anticipates the acquisition to have an immaterial impact on 2021 operating results.

We must note that as of Dec 31, 2020, Dropbox had cash and cash equivalents (and short-term investments) balance of $1.121 billion, and in the fourth quarter of 2020, net cash provided by operating activities amounted to $170.7 million. The company is looking to expand its digital solutions’ portfolio to assist enterprises manage important business-related documents amid remote work trend with the latest buyout. HelloSign is an e-signature vendor that was acquired by Dropbox for $230 million in 2019.ĭuring the quarter under review, Dropbox concluded buyout of DocSend in all cash deal worth $165 million. Notably, in the fourth quarter of 2020, HelloSign witnessed a 70% increase in end user signature requests. HelloSign now boasts of 21 additional languages and management expects the product to gain a solid footing in international markets, courtesy of the extensive awareness campaign. Dropbox’s HelloSign is expected to have witnessed robust uptake in the first quarter as businesses continue with work-from-home set up.

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