Dropbox CEO Drew Houston says that making their product better is their primary strategy to achieving continued strong growth and he doesn’t expect their growth to slow down in the near future. Houston says that the opportunity is massive and that they are not going to run out of people who need Dropbox anytime soon.
Drew Houston, Co-Founder & CEO of Dropbox, talked about their earnings release and their growth strategy on CNBC:
The Opportunity is Massive
We had another strong quarter, strong revenue growth, strong free cash flow. The way we see driving conversion is about bringing people along a journey from using Dropbox as individuals, maybe they start using the free version, and then they bring it into work and start using the business product. We’ve been able to do that at bigger and bigger scale over the last few years.
The opportunity is massive. When we think about it, every company, every team in the world has content and needs to collaborate around it. We’re not going to run out of people who need Dropbox anytime soon and we have hundreds and millions of people who have used Dropbox. We’re operating in massive scale. So really we think about how do we drive people along that journey as effectively as possible?
We Drive Value Per Subscriber by Making the Product Better
The way we drive value per subscriber is make the product better. There’s a number of improvements we’ve made in this quarter and in the last few quarters. When you think about new features in Dropbox like Smart Sync and a feature called Showcase which is about richer sharing, those are driving higher and higher adoption of our premium individual plans in the business version of Dropbox.
A really important part of our strategy is our open ecosystem and our customers love having the freedom to use any different tool or any different ecosystem. That’s a big strength of ours. We’ve announced integrations earlier this year with companies like Google and Salesforce. This quarter we also announced some integrations with companies like Zoom who is a leader in video communication and collaboration. We saw that our Dropbox customers were using all of these products and Zoom found that their customers are using Dropbox. Building a seamless integration is a really powerful way to both increase engagement and then improve the stickiness of our platform.