...Dropbox = Pioneered... Consumerization of Enterprise Software Business Model Inflection Points Users 500MM 4% e ar 2008 = Consumer / Individual h 2.2% S 1.7% s r 250MM 2% Free Premium Features for Referral Launch… e ing 8 Months to 1MM Users • Us ay P 0 0% 2013 = Enterprise / Team 2015 2016 2017 Dropbox for Business Launch… Paying Users Other Registered Users 30% = Dropbox Business Share of Paid Users (2018) Paying Share 2015 = Revenue / Sales Efficiency Revenue & Gross Margin Free-to-Pay User Conversion Launch… 90% = Revenue From Self-Serve Channels (2018)… $1.5B 80% >40% = New Teams with Former Individual Paid User (2018) 67% in e $1.0B arg 2018 = Platform M 33% enu 40% ss Integrated Product Suite Launch… $0.5B Rev ro 3= Major Product Launches Since 2017* G $0 0% 2015 2016 2017 Revenue Gross Margin Source: Ilya Fushman @ Kleiner Perkins. Dropbox, Techcrunch, JMP Securities estimates of Dropbox public releases of registered users. *Major products = Paper, Showcase, & Smart Sync. 265