Valuation, page-19

Very accurate point. It seems some posters have got caught up in the hype and ignored the company's humble justification of it's dramatic increase in paid users.


The high growth in new paid users is primarily coming from Dropsuite’s recently re-launched email backup product from a partnership secured in April with a large IT Service Provider. The rapid increase in paid users over this short period is driven by an extensive marketing campaign to the partner’s existing customers. While the campaign has generated a large increase in paid users and thus revenue, churn maybe higher due to more flexible 'opt-out' terms, and revenue per user will be lower due to special volume pricing for that provider. That said, we are very pleased with the scale of revenue growth with healthy gross margins.

This really conveys the company's transparency to shareholders, as they could've taken the same approach as many others and not included this precautionary optimistic statement. A 33% increase in 3 weeks is a milestone and should not be taken as a precedent, in my opinion. Hopefully the market doesn't get ahead of itself by moving this into overbought territory.