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  "documentTitle": "Dropbox, Inc. (DBX)",
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  "authorName": "Spruce Point Capital Management",
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  "notes": "Uses a 'villain' framing (management) vs 'naive' market participants (bloggers/analysts).",
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      "text": "Like most aggressive tech companies with poor business models that Spruce Point evaluates, we find that Dropbox tries to spin a rosy \"Non-GAAP\" Free Cash Flow presentation.",
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      "text": "I would categorize Dropbox revenue growth as mid-growth (~20% YoY top-line growth). The interesting part is in the net income and free cash flow. The Company has guided to $1.6 billion revenue in FY19. If we apply a 20% growth rate to FY20, that would imply a ~$1.9 billion revenue. If we take management estimates of $375m of free cash flow, it would imply ~20x forward EV/FCF, below high growth profitable peers that routinely trade at 50x EV/FCF. — Seeking Alpha, \"Finding Value in SaaS, Jan 2020",
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