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  "documentTitle": "Dropbox, Inc. (DBX)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2020-02-06 00:00:00",
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  "notes": "Uses survey data to challenge the 'stickiness' thesis of the target company.",
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      "text": "How sticky is Dropbox's customer base if A) most customers believe that it would not be difficult to switch away from Dropbox, and B) nearly half of all Dropbox users already have exposure to competing platforms? Can management dependably generate future growth from price hikes (whether tied to new features or not) if users are so prone to switching?",
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      "text": "How sticky is Dropbox’s customer base if A) most customers believe that it would not be difficult to switch away from Dropbox, and B) nearly half of all Dropbox users already have exposure to competing platforms?",
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      "text": "Do you or your business currently use another file sync and sharing provider?",
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      "text": "How difficult would it be for you or your business to switch from Dropbox to another file sync and sharing platform?",
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      "text": "customer switching difficulty: 68.4%",
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      "text": "A key tenet of the Dropbox bull case is that Dropbox customers are purportedly sticky: because it can supposedly be challenging to port files from one platform to another, Dropbox's customer base is likely relatively stable and willing to absorb marginal price hikes. However, our independent survey of Dropbox customers reveals that most users do not believe that it would be difficult to switch to another file sharing platform. With nearly half of all surveyed customers already using other file sync and sharing platforms in addition to Dropbox, Spruce Point believes that Dropbox customers are far more open to switching than the Street currently believes.",
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      "text": "Source: Spruce Point proprietary survey. See appendix for details.",
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      "text": "Spruce Point Survey: Insights Reveal Surprising Willingness To Switch From Dropbox",
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