The main concern I have around Dropsuite which has also been great for it's success is the relatively low-cost to market. Their products are simple, automated backups of websites and Office 365.

This product is simply middleware which fetches your data and stores it encrypted on AWS. What are the chances that Microsoft starts offering this product themselves? Dropsuite should expand their backup solutions for a lot of commonly used enterprise products, positioning themselves as a single backup solution for an entire enterprise to offset this risk.

Dropsuite released their half yearly tonight, not much new information.

422,000 users at June 30

4.87M Annual Revenue Run Rate

Average Revenue Per User 1.04 per month

The good news is churn from recent user growth look to have been much lower than expected. We'll await the next update in early Sept which should contain the next lot of user numbers.

Decent results, looking solid for a profitable second half. In July the latest user count was at 600,000  and I am estimating the ARPU to be around 0.96 at the moment, which should see them at an ARR of $6.9M right now. 

Dropsuite is a cloud computing store and backup company targeting small to medium enterprises.

The company is relatively low cost, because they do not have high infrastructure costs as storage is on AWS, and they use channel partners who resell their services as add-ons to their existing products, so they have a small sales force.

Their reseller agreement with UOL in Brazil has proven to be extremely effective, going from 300k users in mid June to 600k users at the end of July.

Average revenue per user was last reported at 1.24 per month, however the agreement with UOL has a lower ARPU but the company has not disclosed how much.

Payment terms are generally 45 days, so recent accounts havent shown the income from recent user growth.

If the company can hit 1M users by the end of 2018 with ARPU of $0.95, 2019 could see 11.4M in revenue, and a 3-4M NPAT.