28) "Infrastructure costs include servers

2014-03-31 05:21:26

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iPhone Cases Given that the only Saas based publicly listed cloud storage company (Box) is still not profitable, I will move to the upper layer to select AWS as the closest possible comparable in the form of operating profit margins:Source: Amazon's 10 KsAs can be seen, five year aggregate operating margin is almost 23% and the last two years have exhibited figures hovering around 25%. It is noteworthy that AMZN and DBX cost structures are quite similar: both have comparable operating expenses and both refer to costs of revenue as 'infrastructure costs' (it is not surprising, given that Dropbox operates its own custom built infrastructure to store 90% of users' data (with the remainder covered by AWS), according to its S 1/A filing cheap iphone cases, p.131):AWS (10 K filing, 2018, p.28) "Infrastructure costs include servers cheap iphone cases, networking equipment, and data center related depreciation, rent, utilities, and other expenses necessary to support AWS" Dropbox (S 1 filing, p.72) "[Cost of revenue], which we refer to as infrastructure costs cheap iphone cases, include depreciation of our servers located in co location facilities that we lease and operate, rent and facilities expense for those data centers, network and bandwidth costs cheap iphone cases, support and maintenance costs for our infrastructure equipment, and payments to third party data center service providers." Furthermore, given that R expenses behind the figures in Table 1 should be capitalized (but, for lack of data, cannot be) iphone cases, true operating margins are even higher. Consequently, expecting 25% target pre tax operating profit margins for Dropbox seems quite reasonable.Valuation My narrative for Dropbox is that of a tech company, operating in a highly competitive cloud storage industry, where DBX is the dominant player in the form of SaaS based cloud storage offering. iPhone Cases

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