#1Dropbox Company Presentation August 2020#2Safe harbor Statement This presentation contains forward-looking statements. These statements may relate to, but are not limited to, expectations of future results of operations or financial performance of Dropbox, Inc. ("Dropbox," "we," "us," or similar terms), certain key financial and operating metrics, capital expenditures, plans for growth and future operations, technological capabilities, benefits from new product features, acquisitions and strategic relationships, long-term financial targets, as well as assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, such as the impacts to our financial results, business operations and the business of our customers, suppliers and partners as a result of the COVID-19 pandemic and related public health measures. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expect," "plan," anticipate," "believe," "estimate," "predict," "intend," "potential," "would," "continue," "ongoing" or the negative of these terms or other comparable terminology. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are based on information available at the time those statements are made or management's good faith beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. In light of these risks and uncertainties, the events and circumstances contemplated by the forward-looking statements made in this presentation may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. These risks and uncertainties are described in greater detail under the heading "Risk Factors" in our quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2020 that we filed with the Securities and Exchange Commission (the "SEC") on May 8, 2020, and include, but are not limited to, the impacts to our financial results, business operations, the business of our customers, suppliers and partners as a result of the COVID-19 pandemic and related public health measures, our ability to retain and upgrade paying users, in particular paying users impacted by the COVID-19 pandemic, and increase our recurring revenue; our ability to attract new users or convert registered users to paying users, in particular prospective paying users financially impacted by the COVID-19 pandemic; our future financial performance, including trends in revenue, cost of revenue, gross profit or gross margin, operating expenses, paying users, and free cash flow; our ability to achieve or maintain profitability; the demand for our platform or for content collaboration solutions in general; possible harm caused by significant disruption of service, particularly from any potential disruptions in the supply chain for hardware necessary to offer our services that may result from the COVID-19 pandemic, or loss or unauthorized access to users' content; our ability to effectively interoperate our platform with others; our ability to successfully integrate acquired businesses; our ability to continue to release, gain customer acceptance of, and provide support for, additional product features and new and improved versions of our services, particularly in light of potential disruptions to the productivity of our employees resulting from remote work; our ability to realize benefits from strategic partnerships; and our ability to compete successfully in competitive markets. These factors could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. Additional information will be made available in our quarterly report on Form 10-Q for the quarter ended June 30, 2020 and in other reports that we may file with the SEC from time to time, which could cause actual results to vary from expectations. Except as required by law, Dropbox does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. In addition to financial information presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation includes certain non-GAAP financial measures, including non-GAAP gross margin, non-GAAP operating expenses (including research and development, sales and marketing and general and administrative), non-GAAP operating income, non-GAAP operating margin and free cash flow. These non-GAAP measures are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. These non-GAAP measures have limitations as analytical tools, and they should not be considered in isolation or as a substitute for analysis of other GAAP financial measures. The non-GAAP measures Dropbox uses may differ from the non-GAAP measures used by other companies. A reconciliation of these measures to the most directly comparable GAAP measures is included at the end of this presentation. This presentation also contains statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information may be based on many assumptions and limitations, and you are cautioned not to give undue weight to such information. We have not independently verified the accuracy or completeness of the data contained in the industry publications and other publicly available information. Dropbox does not undertake to update such data after the date of this presentation.#3Keeping files in sync Cloud storage 2007 Backup & sync File sharing Shared folders |||| = & Keeping teams in sync Smart Workspace Today Content management Collaborative apps Professional sharing Project management Document workflow#4Dropbox today We're a business software company that defies traditional boundaries We're a smart workspace for the world's digital content We have a rare combination of virality, scale, and cash generation We have a long runway for growth#5Global collaboration platform at scale 600M+ registered users 550B+ pieces of content 15.0M paying users 80% of subscribers use us for work 31 00 S Ps * Ai W#6Dropbox is building the world's first smart workspace A unified workspace that organizes your content, connects your SaaS tools, and brings teams together Pepo Studio Inc. Angela Zhang Starred Folders Warehouse Package Design Shipping Materials Resources Pepo Studio Inc. [email protected] Q Search in Package Design Package Design We've narrowed our new package designs down to three final options. Please review all three pinned files below. ✓Present concepts to marketing @Angela Zhang Approve production schedule @Daniel Smith Final concept selection by June 4 Production.gslides Updated just now by Angela Z 7 folders, 5 files Name Box Samples Package Dimensions.gsheet Earth-Friendly Materials Box Samples Pepo Studio Inc. > Package Design Materials.pdf Create ✓ R Modified 2:34 PM 1:04 PM 1:04 PM Materials.pdf 7.2 MB Modified 5 hours ago 3 Write a comment @Angela Zhang Thanks for sharing! Option #2 is my... Activity Let's make sure we can get this in production before... C Daniel Smith shared in Zoom 3 hours ago Zoom Jay Singh shared in #package-design 3 hours ago Slack. William Jackson opened 2 hours ago#7Reinventing the software playbook Traditional playbook Designed for IT Top-down distribution Walled garden Rip-and-replace VS. VS. VS. VS. What sets Dropbox apart Designed for users Bottom-up adoption Open ecosystem Live side-by-side#8Efficient Go-to-Market Self-serve "land" Starts with massive user adoption Land within companies Expand within companies Targeted outbound "expand" Full deployment#9Open ecosystem Enterprise apps IBM SAP ADP Media + Design DocuSign 8 A AUTODESK. A Adobe ORACLE® vimeo Sales + Marketing salesforce Hubspot ZOHO Project management zendesk A ATLASSIAN Hootsuite asana Wrike smartsheet Content management NINTEX Microsoft Azure SharePoint WWIDEN BitTitan Productivity Office A Adobe G Suite 0 Security vmware slack splunk> Symantec. okta Communications Better Cloud Workplace RingCentral zoom 50B+ API calls /month 75% of teams linked to a third-party app 750K+ registered developers#10Hybrid infrastructure: Scale, Agility, & Innovation Seattle Hillsboro Palo Alto San Jose Los Angeles IDC AICPA SOC ISO Dallas Denver cloud CSA security alliance Chicago Amsterdam. Toronto London New York Paris Ashburn Madrid- Atlanta Miami Core DC POP Oslo Stockholm Berlin Frankfurt Milan Public DC Hong Kong Singapore Tokyo Sydney#11Growth drivers Execute Convert Drive registered users to become paying users on Individual and Team plans Upsell Prompt existing paying users to upgrade to premium plans or purchase additional licenses 600M+ registered users 350M+ potential high value targets 15.0M paying users Innovate New product experiences Leverage scale and user insights to enhance existing products and drive adoption of new ones Expand ecosystem Grow thriving ecosystem to put Dropbox at the center of users' lives#12Product highlights#13The New Dropbox Brings together cloud content and traditional files in one place Brings tools together by integrating with best-of-breed apps Brings people together by transforming folders into rich workspaces En Hanford Inc. E Starred folders Customer Proposal Suggested folders + Work [email protected] < > Hanford Inc. > > Sales Customer Proposal Q Search Robert Hakobyan updated 3 hours ago Create Name Recent activity A 69 ⠀ Invite Q Search Hanford Inc. For you Recent Notifications Meeting: Weekly Sync 10:00am-10:30am - Meeting Room 1 Attach Join Zoom meeting ✓ Suggested attachments Timeline.gsheet Brainstorm.paper Your highlights + Final Proposal.pdf o Viewed 3 hours ago Sales Team highlights + Attach * Michelle Wallace edited Customer Info.gdoc 2 hours ago. You work with Michelle a lot.#14Dropbox Transfer Easily and securely share large files and folders Recipients can view, download, and comment on Transfers Senders receive analytics and real- time notifications around file activity Note: Size of Transfers varies based on Dropbox plan: Basic (100MB), Plus & Standard (2GB), Professional, Advanced, Enterprise, and Education (100GB). Note: Transfers are automatically set to expire after 7 days, but Professional, Advanced, Enterprise, and Education users have the option to set the transfer to expire in 7, 30, 60, or 90 days. BEE PDF CO. 5 files from Company Inc. 3.6 GB - Expires in 7 days Save to my Dropbox Download Transfers Colors.psd and 6 more Q Search 3 Visits 6 Visits 5 Visits 13 Visits C 2 Downloads 4 Downloads 5 Downloads 8 Downloads ⠀#15Dropbox Passwords Store and sync passwords across all devices Easily sign in from anywhere Zero-knowledge encryption keeps users' data secure Q Accounts F N N Dropbox [email protected] Facebook [email protected] Add [2 ... Facebook Userna Accounts Angela@ Passwo C N Dropbox [email protected] Facebook [email protected] + 0#16Dropbox Vault Securely store passports, tax documents, and financial statements PIN code provides extra layer of security Designate trusted friends and family access to your Vault Home Overview fol PDF Vault Jacob's Passport Create =#17Computer Backup Automatically back-up folders on a PC or Mac Content is continuously synced between the cloud and a hard drive Easily access all your content from within Dropbox Dropbox My Computer My computer Desktop Documents Downloads Create ✓ Invite My Computer Desktop Documents Downloads a ... + •1 ⠀ ⠀ ⠀#18Dropbox Family Keep your family's digital lives connected Create both shared and personal spaces Support up to 6 members in one plan Personal <> Dropbox Personal account Name Family Your family You can invite up to 5 other members, ages 13 and up. Kathryn Martinez Ashley Martinez Erik Martinez 3/5 invites left Dropbox Status Family manager Family member Family member Invite members 4 ✩ 0#19Drobox App Center Discover and connect apps to your Dropbox account Over 40+ apps to choose from across a range of categories Creates a more engaging and higher- value experience with Dropbox App Center Collections Manage Q Search apps A chunk#20HelloSign Native Integration Sign, send, and receive documents all without ever leaving Dropbox Manage an entire end-to-end workflow within Dropbox HelloSign is now the primary eSignature tool for Dropbox users onboarding_nda.pdf NON-DISCLOSURE AGREEMENT Share onboarding_nda.pdf Details Open Activity Get it signed You sent this document for signature to [email protected] You created this document A L the#21Deep integration partners Google zoom AⓇ Adobe BetterCloud slack Microsoft A ATLASSIAN salesforce#22Slack integration Start Slack conversations from Dropbox < Retail_display.jpg Modified on May 14 # 6 Patricia Johnson Viewing now Share Could you take a look at this Send Cancel Open with ments Activity ... 2 I Share content to Slack from Dropbox < Promo_Image02.jpg Share file in Slack Promo_Image02.jpg Wendy Jones @WendyJ #Marketing Angela Zhang @AngelaZ Share # Marketing # Send Angela Patricia ←1 Promo_Ima 02.jpg Q Search ⠀#23Zoom integration Start Zoom meetings from Dropbox Kimberly Williams Shared meetings Design Sync Meeting In 10 minutes 6 3 Make it a Zoom meeting 4 Share FI Present Dropbox content via Zoom I 1 www AV 6 Share Present in Zoom C FI#24Data protection & orchestration Dropbox & Better Cloud Automated workflows for account capture, onboarding, & offboarding Data loss prevention New add-on SKU sold by DBX#25Financial highlights#26Financial highlights Revenue ($M) 19% YOY growth in 2019 $1,107 2017 $1,392 2018 $1,661 2019 Operating income ($M) Non-GAAP operating income Non-GAAP operating margin $60 5% 2017 $170 12% 2018 $205 12% 2019 Figures presented are non-GAAP and exclude stock-based compensation expense and certain non-recurring adjustments. See appendix for non-GAAP reconciliation.#27Financial highlights Revenue ($M) 16% YOY growth in Q2'20 $402 2Q 19 $467 2Q 20 Operating income ($M) Non-GAAP operating income Non-GAAP operating margin $40 10% 2Q 19 $96 21% 2Q 20 Figures presented are non-GAAP and exclude stock-based compensation expense, amortization of acquired intangibles, and HelloSign acquisition-related expenses. See appendix for non-GAAP reconciliation.#28Target model Non-GAAP Gross margin R&D expense as % of revenue S&M expense as % of revenue G&A expense as % of revenue Operating margin Annual Free Cash Flow Note: Margin framework excludes one-time deal-related investments associated with M&A. 2019 76% 30% 23% 11% 12% $392M Long-term target 78-80% 23-25% 18-20% 8-10% 28-30% $1B+#29Appendix#30Dropbox subscription plans Free 2GB of storage Basic Individuals $11.99 / month $119.88 / year 2TB storage Plus Smart Sync Computer Backup Passwords Vault* Dropbox Rewind Dropbox Transfer* Full text search Priority email support 30 day version history Professional $19.99/month $199.00/year Everything in Plus Enhanced Smart Sync Auto OCR Premium previews Watermarking Time-based comments Shared link controls 180 day version history 3TB storage Standard $15.00/user / month $150.00 /user/ year 3 users minimum Everything in Professional Team folders Admin console Granular permissions Active directory connector Enables HIPAA compliance Unlimited API access** 5TB storage *Vault is only available in Plus. *Size of Dropbox Transfer varies based on Dropbox plan: Basic (100MB), Plus & Standard (2GB), Professional, Advanced, and Enterprise (100GB). **Teams have unlimited API access to productivity and security partners but may be subject to a cap on API calls to data transport partners. Teams Advanced $25.00 /user / month $240.00 /user/year 3 users minimum Everything in Standard Business hours phone support Single sign-on integration (SSO) Audit logs Device approvals Tiered admin roles As much storage as needed Enterprise Negotiated pricing Everything in Advanced 24/7 phone support Enterprise mobility management (EMM) Network control Domain insights and analytics As much storage as needed#31HelloSign subscription plans Free 1 user 3 docs/mo Audit trail Notifications Pro $15 / mo 1 user 1 template Everything in Free 2-factor auth Template links Decline to sign HELLOSIGN Business $10 / user Minimum 5 users Starts at 5 templates Everything in Pro Custom branding In-person signing Team features Enterprise* $30 / user Minimum 5 users Unlimited templates Everything in Business Signer attachments Advanced signing Advanced reporting Team management Master account billing HIPAA (w/ BAA) CRM/CPQ Integration** Unlimited document storage in HelloSign or Prebuilt storage integrations with Dropbox and several others Bronze $99 / mo 50 API calls 5 templates Test mode Decline to sign Optional signers Audit trail Notifications Silver $249 / mo 150 API calls 15 templates Everything in Bronze HELLOSIGN API Embedded signing Embedded requesting Single foreign language Gold $449 / mo 450 API calls Unlimited templates Everything in Silver Multi-foreign languages Advanced signing Custom branding Signer attachments Bulk send Unlimited document storage in HelloSign Enterprise*** Negotiated pricing 1,000+ API calls Unlimited templates Everything in Gold Embedded templates White labeling Data deletion HIPAA (w/ BAA) *Additional Enterprise+ plan available with advanced functionality **Salesforce SalesCloud, Salesforce CPQ and Oracle CPQ add-ons available at an additional $5 / $15 / $15 / user per month respectively ***Higher volume API plans with advanced functionality available#32HelloWorks subscription plans SMB HW Free $0 / mo Up to 100 txns* mo Unlimited Users/Teams Unlimited Workflows Unlimited Participants HelloWorks Portal API Access Shareable Links Conditional Logic Unlimited Storage HW 150 $299 / mo Up to 150 txns* / mo Everything in Free Company Branding SMS Authentication Unlimited Storage Mid Market HW 250 $399 / mo Up to 250 txns* Unlimited Storage mo HW 450 $699 / mo Up to 450 txns* / mo Unlimited Storage *Any time a workflow is launched (or sent out) for completion a single (1) "Transaction" (txn) is created ENT HW 1K+ Negotiated Pricing Starts at 1,000 txns* / mo Everything in Mid Market Delegated Authentication Unlimited Storage#33HelloFax subscription plans Free 1 user 5 pages Single fax line** Int'l coverage Edit & sign Home Office $9.99 / mo 5 users 300 pages / mo Everything in Free Email to fax Receive faxes Multi-recipient faxes API access*** Professional $19.99 / mo 10 users 500 pages / mo Small Business $39.99 / mo 20 users 1,000 pages / mo Enterprise* Unlimited document storage in HelloFax or Prebuilt storage integrations with Dropbox and several others Negotiated pricing 20+ users Starts at 2,000 pages / mo Everything in Home Office Everything in Professional Everything in Small Business *Higher volume plans available with advanced features **Additional fax lines available for $4.99 / month ***API access available for an add-on fee of $2 / month per line and $0.05 / page with a $100 minimum monthly fee#34Non-GAAP reconciliation Loss from operations - GAAP Stock-based compensation Donation of common stock to the Dropbox Foundation Employer payroll taxes related to the release of two-tier RSUS Acquisition-related and other expenses Amortization of acquired intangible assets Income from operations - Non-GAAP $ 2017 (113.7) 164.6 9.4 60.3 Twelve months ended 2018 $ $ (494.0) 650.1 13.9 170.0 $ 2019 (80.5) 261.2 15.9 8.4 205.0#35Non-GAAP reconciliation Gross profit Gross margin Research and development Research and development margin Sales and marketing Sales and marketing margin General and administrative General and administrative margin Income (loss) from operations Operating margin $ GAAP 1,250.3 75% 662.1 40% 423.3 26% 245.4 15% (80.5) -5% Stock-based compensation Twelve months ended - 2019 15.8 1% (147.6) -9% (31.4) -2% (66.4) -4% 261.2 16% Acquisition-related and other expenses 0% (14.5) -1% 0% (1.4) 0% 15.9 1% Amortization of acquired intangible $ assets 3.4 0% 0% (5.0) 0% 0% 8.4 1% $ Non-GAAP 1,269.5 76% 500.0 30% 386.9 23% 177.6 11% 205.0 12%#36Non-GAAP reconciliation Twelve months ended - 2019 Net cash provided by operating activities Capital expenditures Free cash flow $ $ 528.5 (136.1) 392.4#37Non-GAAP reconciliation Income (Loss) from operations - GAAP Stock-based compensation Acquisition-related and other expenses Amortization of acquired intangible assets Income from operations - Non-GAAP $ $ Three months ended June 30, 2019 (34.0) $ 68.1 4.1 2.3 40.5 $ June 30, 2020 12.8 76.6 4.4 2.4 96.2#38*Dropbox