We are investigating Dropbox, Inc. (DBX) (“Dropbox” or the “Company”) for potential violations of the federal securities laws.
On or around March 23, 2018, Dropbox conducted its initial public offering (the “IPO”), offering 36 million shares priced at $21.00 per share. On August 8, 2019, Dropbox announced its financial results for the second quarter of 2019, advising investors that the Company had “more than 500 million registered users,” indicating that it had experienced essentially no significant registered user growth since prior to the IPO. In addition, Dropbox reported that its revenue growth had decelerated to only 18% for 2019, a sharp decline from the 40% and 31% annual growth rates highlighted in the registration statement issued in connection with the IPO. On this news, Dropbox’s stock price fell $2.75 per share, or 12.81%, to close at $18.71 per share on August 9, 2019. Since the IPO, Dropbox’s stock price has fallen as low as $17.26 per share, representing a total decline of 17.81% since the IPO.