2/24/2018 S-1 Table of Contents DROPBOX, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) Year ended December 31, 2015 2016 2017 Revenue $ 603.8 $ 844.8 $1,106.8 (1) Cost of revenue 407.4 390.6 368.9 Gross profit 196.4 454.2 737.9 (1) Operating expenses : Research and development 201.6 289.7 380.3 Sales and marketing 193.1 250.6 314.0 (2) General and administrative 107.9 107.4 157.3 Total operating expenses 502.6 647.7 851.6 Loss from operations (306.2) (193.5) (113.7) Interest expense, net (15.2) (16.4) (11.0) Other income (expense), net (4.2) 4.9 13.2 Loss before income taxes (325.6) (205.0) (111.5) Provision for income taxes (0.3) (5.2) (0.2) Net loss $(325.9) $(210.2) $ (111.7) Net loss per share attributable to common stockholders, basic and diluted $ (1.18) $ (0.74) $ (0.38) Weighted­average shares used in computing net loss per share attributable to common stockholders, basic and diluted 276.8 283.7 293.9 Pro forma net loss per share attributable to common stockholders, basic and diluted (unaudited) $ (0.21) Weighted­average shares used in computing pro forma net loss per share attributable to common stockholders, basic and diluted (unaudited) 537.9 (1) Includes stock­based compensation as follows (in millions): Year ended December 31, 2015 2016 2017 Cost of revenue $ 2.6 $ 8.2 $ 12.2 Research and development 36.1 72.7 93.1 Sales and marketing 19.8 44.6 33.7 General and administrative 7.6 22.1 25.6 (2) 2017 general and administrative expense includes $9.4 million for a non­cash charitable contribution and $1.9 million of cash contributions to the Dropbox Charitable Foundation, a related party. See Note 15 for further details. See accompanying Notes to Consolidated Financial Statements. F­4 https://www.sec.gov/Archives/edgar/data/1467623/000119312518055809/d451946ds1.htm 194/235