Dropbox Investor Presentation Deck
Definitions
Total Annual Recurring Revenue, ("Total ARR" or "ARR") - represents the amount of revenue that we expect to
recur, enables measurement of the progress of our business initiatives, and serves as an indicator of future growth.
We calculate Total ARR as the number of users who have active paid licenses for access to our platform as of the end
of the period, multiplied by their annualized subscription price to our platform. We adjust the exchange rates used to
calculate Total ARR on an annual basis at the beginning of each fiscal year.
Average Revenue per Paying User, (“ARPU”) – is defined as our revenue for the period presented divided by the
average paying users during the same period. For interim periods, we use annualized revenue, which is calculated by
dividing the revenue for the particular period by the number of days in that period and multiplying this value by 365
days. Average paying users are calculated based on adding the number of paying users as of the beginning of the
period to the number of paying users as of the end of the period, and then dividing by two.
Paying Users are defined as the number of users who have active paid licenses for access to our platform as of the
end of the period. One person would count as multiple paying users if the person had more than one active license.
For example, a 50-person Dropbox Business team would count as 50 paying users, and an individual Dropbox Plus
user would count as one paying user. If that individual Dropbox Plus user was also part of the 50-person Dropbox
Business team, we would count the individual as two paying users.
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