0001467623-22-000027 | 10-Q | XBRL Viewer

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Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2022	May 02, 2022
Class of Stock [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-38434
Entity Registrant Name	Dropbox, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-0138832
Entity Address, Address Line One	1800 Owens Street
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94158
City Area Code	415
Local Phone Number	857-6800
Title of 12(b) Security	Class A Common Stock, par value $0.00001 per share
Trading Symbol	DBX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001467623
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class A common stock
Class of Stock [Line Items]
Entity Common Stock, Shares Outstanding		292,996,440
Class B common stock
Class of Stock [Line Items]
Entity Common Stock, Shares Outstanding		82,607,593
Class C common stock
Class of Stock [Line Items]
Entity Common Stock, Shares Outstanding		0

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 445.5	$ 533.0
Short-term investments	1,050.1	1,185.1
Trade and other receivables, net	44.6	49.6
Prepaid expenses and other current assets	82.7	82.1
Total current assets	1,622.9	1,849.8
Property and equipment, net	316.1	322.0
Operating lease right-of-use asset	420.3	413.9
Intangible assets, net	50.0	53.6
Goodwill	355.9	356.6
Other assets	86.8	95.4
Total assets	2,852.0	3,091.3
Current liabilities:
Accounts payable	24.4	25.7
Accrued and other current liabilities	155.2	140.8
Accrued compensation and benefits	44.6	139.1
Operating lease liability	82.6	78.3
Finance lease obligation	118.9	120.4
Deferred revenue	691.7	671.5
Total current liabilities	1,117.4	1,175.8
Operating lease liability, non-current	632.3	632.0
Finance lease obligation, non-current	156.6	167.7
Convertible senior notes, net, non-current	1,371.2	1,370.3
Other non-current liabilities	37.8	39.4
Total liabilities	3,315.3	3,385.2
Commitments and contingencies (Note 10)
Stockholders' deficit:
Additional paid-in-capital	2,419.7	2,448.1
Accumulated deficit	(2,854.9)	(2,739.4)
Accumulated other comprehensive loss	(28.1)	(2.6)
Total stockholders' deficit	(463.3)	(293.9)
Total liabilities and stockholders' deficit	$ 2,852.0	$ 3,091.3

Condensed Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions

3 Months Ended

Mar. 31, 2022

Mar. 31, 2021

Income Statement [Abstract]

Revenue

$ 562.4

$ 511.6

Cost of revenue

^[1]

112.9

109.3

Gross profit

449.5

402.3

Operating expenses

Research and development

^[1]

210.8

181.2

Sales and marketing

^[1]

95.7

102.7

General and administrative

^[1]

53.5

58.6

^[1],[2]

0.0

17.3

Total operating expenses

^[1]

360.0

359.8

Income from operations

89.5

42.5

Interest expense, net

(1.4)

(1.2)

Other income, net

5.7

5.1

Income before income taxes

93.8

46.4

(Provision for) benefit from income taxes

(14.1)

1.2

Net income

$ 79.7

$ 47.6

Basic net income per share (in dollars per share)

$ 0.22

$ 0.12

Diluted net income per share (in dollars per share)

$ 0.21

$ 0.12

Weighted-average shares used in computing net income per share attributable to common stockholders, basic (in shares)

370.7

398.1

Weighted-average shares used in computing net income per share attributable to common stockholders, diluted (in shares)

372.9

405.4

[1]

Includes stock-based compensation as follows:


	Three Months Ended March 31,
	2022		2021

Cost of revenue	$	5.7	$	5.4
Research and development	50.5		43.5
Sales and marketing	4.5		6.9
General and administrative	11.6		12.1

[2]

Includes impairment charges related to real estate assets as a result of our decision to shift to a Virtual First work model. See Note 9 "Leases" for further information.

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cost of revenue
Allocated share-based compensation expense	$ 5.7	$ 5.4
Research and development
Allocated share-based compensation expense	50.5	43.5
Sales and marketing
Allocated share-based compensation expense	4.5	6.9
General and administrative
Allocated share-based compensation expense	$ 11.6	$ 12.1

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 79.7	$ 47.6
Other comprehensive loss:
Change in foreign currency translation adjustments	(1.2)	(1.8)
Change in net unrealized gains and losses on short-term investments	(24.3)	(4.5)
Total other comprehensive loss	(25.5)	(6.3)
Comprehensive income	$ 54.2	$ 41.3

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Condensed Consolidated Statements of Stockholders' Deficit - USD ($) shares in Millions, $ in Millions	Total	Class A and Class B Common Stock	Additional paid in capital	Accumulated deficit	Accumulated other comprehensive income
Shares outstanding, beginning of the period (in shares) at Dec. 31, 2020		405.7
Shareholders equity, beginning balance at Dec. 31, 2020	$ 333.8	$ 0.0	$ 2,564.3	$ (2,241.4)	$ 10.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Release of restricted stock units and awards (in shares)		3.8
Shares withheld related to net share settlement of restricted stock units and awards (in shares)		(1.5)
Shares withheld related to net share settlement of restricted stock units and awards	(35.8)		(11.2)	(24.6)
Repurchases of common stock (in shares)		(18.6)
Repurchases of common stock	(431.9)		(142.5)	(289.4)
Exercise of stock options and awards (in shares)		0.4
Exercise of stock options and awards	2.9		2.9
Assumed stock options in connection with acquisition	1.2		1.2
Purchase of bond hedges in connection with issuance of convertible senior notes	(265.3)		(265.3)
Sale of warrants in connection with issuance of convertible senior notes	202.9		202.9
Tax benefit attributable to bond hedges purchased in connection with issuance of convertible senior notes	0.0
Stock-based compensation	67.9		67.9
Other comprehensive loss	(6.3)				(6.3)
Net income	47.6			47.6
Shares outstanding, end of the period (in shares) at Mar. 31, 2021		389.8
Shareholders equity, ending balance at Mar. 31, 2021	(83.0)	$ 0.0	2,420.2	(2,507.8)	4.6
Shares outstanding, beginning of the period (in shares) at Dec. 31, 2021		375.5
Shareholders equity, beginning balance at Dec. 31, 2021	$ (293.9)	$ 0.0	2,448.1	(2,739.4)	(2.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Release of restricted stock units and awards (in shares)		3.9
Shares withheld related to net share settlement of restricted stock units and awards (in shares)	(1.5)	(1.5)
Shares withheld related to net share settlement of restricted stock units and awards	$ (36.7)		(12.2)	(24.5)
Repurchases of common stock (in shares)		(11.0)
Repurchases of common stock	$ (259.9)		(89.2)	(170.7)
Exercise of stock options and awards (in shares)	0.1	0.1
Exercise of stock options and awards	$ 0.2		0.2
Assumed stock options in connection with acquisition	0.0
Purchase of bond hedges in connection with issuance of convertible senior notes	0.0
Sale of warrants in connection with issuance of convertible senior notes	0.0
Tax benefit attributable to bond hedges purchased in connection with issuance of convertible senior notes	0.5		0.5
Stock-based compensation	72.3		72.3
Other comprehensive loss	(25.5)				(25.5)
Net income	79.7			79.7
Shares outstanding, end of the period (in shares) at Mar. 31, 2022		367.0
Shareholders equity, ending balance at Mar. 31, 2022	$ (463.3)	$ 0.0	$ 2,419.7	$ (2,854.9)	$ (28.1)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Cash flow from operating activities
Net income	$ 79.7	$ 47.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	39.4	34.7
Stock-based compensation	72.3	67.9
Impairment related to real estate assets	0.0	17.3
Amortization of debt issuance costs	1.0	0.7
Amortization of deferred commissions	9.0	7.7
Other	1.8	(0.9)
Changes in operating assets and liabilities:
Trade and other receivables, net	4.8	(7.1)
Prepaid expenses and other current assets	(9.7)	(12.3)
Other assets	26.1	17.9
Accounts payable	(1.0)	10.1
Accrued and other current liabilities	19.1	6.3
Accrued compensation and benefits	(94.5)	(70.6)
Deferred revenue	19.5	28.9
Other non-current liabilities	(27.0)	(34.1)
Tenant improvement allowance reimbursement	0.9	1.6
Net cash provided by operating activities	141.4	115.7
Cash flow from investing activities
Capital expenditures	(10.7)	(6.9)
Business combinations, net of cash acquired	0.0	(125.4)
Purchases of short-term investments	(81.6)	(513.9)
Proceeds from sales of short-term investments	51.8	114.2
Proceeds from maturities of short-term investments	137.5	129.9
Other	4.0	3.3
Net cash provided by (used in) investing activities	101.0	(398.8)
Cash flow from financing activities
Proceeds from issuance of convertible senior notes	0.0	1,389.1
Purchases of convertible note hedge in connection with issuance of convertible senior notes	0.0	(265.3)
Proceeds from sale of warrants in connection with issuance of convertible senior notes	0.0	202.9	$ 202.9
Payments of debt issuance costs	0.0	(22.7)
Payments for taxes related to net share settlement of restricted stock units and awards	(36.7)	(35.8)
Proceeds from issuance of common stock, net of taxes withheld	0.2	2.9
Principal payments on finance lease obligations	(32.4)	(24.6)
Common stock repurchases	(259.9)	(431.9)
Net cash (used in) provided by financing activities	(328.8)	814.6
Effect of exchange rate changes on cash and cash equivalents	(1.1)	(0.9)
Change in cash and cash equivalents	(87.5)	530.6
Cash and cash equivalents - beginning of period	533.0	314.9	314.9
Cash and cash equivalents - end of period	445.5	845.5	$ 533.0
Supplemental cash flow data:
Property and equipment acquired under finance leases	$ 19.7	$ 24.0

Description of the Business and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of the Business and Summary of Significant Accounting Policies

Business

Dropbox, Inc. (the “Company” or “Dropbox”) helps keep life organized and work moving. The Company was incorporated in May 2007 as Evenflow, Inc., a Delaware corporation, and changed its name to Dropbox, Inc. in October 2009. The Company is headquartered in San Francisco, California.

Basis of presentation and consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the United States of America generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the SEC regarding interim financial reporting. The accompanying unaudited condensed consolidated financial statements include the accounts of Dropbox and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

The condensed consolidated balance sheet as of December 31, 2021 included herein was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheets, statements of operations, statements of comprehensive income, statements of stockholders' deficit and the statements of cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ended December 31, 2022 or any future period.

The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2021, included in the Company's Annual Report on Form 10-K on file with the SEC ("Annual Report").

Use of estimates

The Company’s most significant estimates and judgments involve the valuation of acquired intangible assets and goodwill from business combinations as well as the valuation of right-of-use and other lease related assets.

Financial information about segments and geographic areas

The Company manages its operations and allocates resources as a single operating segment. Further, the Company manages, monitors, and reports its financials as a single reporting segment. The Company’s chief operating decision-maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. See Note 15 "Geographic Areas" to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for information regarding the Company’s long-lived assets and revenue by geography.

Foreign currency transactions

The assets and liabilities of the Company’s foreign subsidiaries are translated from their respective functional currencies into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue and expense amounts are translated at the average exchange rate for the period. Foreign currency translation gains and losses are recorded in other comprehensive loss, net of tax.

Gains and losses realized from foreign currency transactions (those transactions denominated in currencies other than the foreign subsidiaries’ functional currency) are included in other income, net. Monetary assets and liabilities are remeasured using foreign currency exchange rates at the end of the period, and non-monetary assets are remeasured based on historical

exchange rates. The Company recorded net foreign currency transaction gains of $2.8 million and $0.2 million during the three months ended March 31, 2022 and 2021, respectively.

Revenue recognition

The Company derives its revenue from subscription fees from customers for access to its platform. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price of its subscription agreements. The Company accounts for revenue contracts with customers through the following steps:

•Identification of the contract, or contracts, with a customer

•Identification of the performance obligations in the contract

•Determination of the transaction price

•Allocation of the transaction price to the performance obligations in the contract

•Recognition of revenue when, or as, the Company satisfies a performance obligation

The Company’s subscription agreements generally have monthly or annual contractual terms and a small percentage have multi-year contractual terms. Revenue is recognized ratably over the related contractual term beginning on the date that the platform is made available to a customer. Access to the platform represents a series of distinct services as the Company continually provides access to, and fulfills its obligation to the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. The Company recognizes revenue ratably because the customer receives and consumes the benefits of the platform throughout the contract period. The Company’s contracts are generally non-cancelable.

The Company bills in advance for monthly contracts and typically bills annually in advance for contracts with terms of one year or longer. The Company also recognizes an immaterial amount of contract assets, or unbilled receivables, primarily relating to consideration for services completed but not billed at the reporting date. Unbilled receivables are classified as receivables when the Company has the right to invoice the customer.

The Company records contract liabilities when cash payments are received or due in advance of performance to deferred revenue. Deferred revenue primarily relates to the advance consideration received from the customer.

The price of subscriptions is generally fixed at contract inception and therefore, the Company’s contracts do not contain a significant amount of variable consideration. As a result, the amount of revenue recognized in the periods presented from performance obligations satisfied (or partially satisfied) in previous periods was not material.

The Company recognized $313.7 million and $283.8 million of revenue during the three months ended March 31, 2022 and 2021, respectively, that was included in the deferred revenue balances at the beginning of their respective periods.

As of March 31, 2022, future estimated revenue related to performance obligations that were unsatisfied or partially unsatisfied was $753.6 million. The substantial majority of the unsatisfied performance obligations will be satisfied over the next twelve months.

Stock-based compensation

The Company has primarily granted restricted stock units (“RSUs”) to its employees and members of the Board of Directors under the 2008 Equity Incentive Plan (“2008 Plan”), the 2017 Equity Incentive Plan (“2017 Plan”), and the 2018 Equity Incentive Plan (“2018 Plan” and together with the 2008 Plan and 2017 Plan, the "Dropbox Equity Incentive Plans”). Since August 2015, the Company has granted RSUs, which have a service based vesting condition over a four-year period vesting quarterly, as the only stock-based payment awards to its employees, with the exception of awards granted to its co-founders and certain executives, and has not granted any stock options to employees under the Dropbox Equity Incentive Plans. The Company recognizes compensation expense associated with RSUs on a straight-line basis over the requisite service period and accounts for forfeitures in the period in which they occur.

The Board of Directors determines the fair value of each share of underlying common stock based on the closing price of the Company's Class A common stock as reported on the Nasdaq Global Select Market on the date of the grant.

In connection with the acquisition of DocSend, Inc. (“DocSend”), the Company assumed unvested stock options and an immaterial number of unvested RSUs that had been granted under DocSend's 2013 Stock Plan and DocSend's 2015 Stock Option and Grant Plan. The fair value of the DocSend options assumed were based upon the Black-Scholes option-pricing model. See Note 12 "Stockholders' Deficit" to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further information.

In December 2017, the Board of Directors approved the Company’s Co-Founder Grant, consisting of 10.3 million shares of Class A Common Stock in the form of restricted stock awards ("RSAs") which were granted to Drew Houston, the Company’s co-founder and Chief Executive Officer. This Co-Founder Grant has service-based, market-based, and performance-based vesting conditions. The Co-Founder Grant is excluded from Class A common stock issued and outstanding until the satisfaction of these vesting conditions. The Company estimated the grant date fair value of the Co-Founder Grant using a model based on multiple stock price paths developed through the use of a Monte Carlo simulation that incorporates into the valuation the possibility that the Stock Price Targets may not be satisfied. The first tranche of Mr. Houston's Co-Founder Grant vested in the fourth quarter of 2021. The stock-based compensation expense for Mr. Houston's Co-Founder Grant is recognized utilizing the accelerated attribution method over the requisite service period identified as the derived service period over which the market conditions are expected to be achieved, and is not reversed if the market conditions are not satisfied. Therefore no incremental stock-based compensation was recognized upon vesting of these RSAs. See Note 12, "Stockholders' Deficit" to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further information.

Cost of revenue

Cost of revenue consists primarily of expenses associated with the storage, delivery, and distribution of the Company’s platform for both paying users and free users. These costs, which are referred to as infrastructure costs, include depreciation of servers located in co-location facilities that the Company leases and operates, rent and facilities expense for those datacenters, network and bandwidth costs, support and maintenance costs for infrastructure equipment, and payments to third-party datacenter service providers. Cost of revenue also includes costs, such as salaries, bonuses, benefits, travel-related expenses, and stock-based compensation, which are referred to as employee-related costs, for employees whose primary responsibilities relate to supporting the Company’s infrastructure and delivering user support. Other non-employee costs included in cost of revenue include credit card fees related to processing customer transactions and allocated overhead, such as facilities, including rent, utilities, depreciation on leasehold improvements and other equipment shared by all departments, and shared information technology costs. In addition, cost of revenue includes amortization of developed technologies, professional fees related to user support initiatives, and property taxes related to the datacenters.

Cash and cash equivalents

Cash consists primarily of cash on deposit with banks and includes amounts in transit from payment processors for credit and debit card transactions, which typically settle within five business days. Cash equivalents include highly liquid investments purchased with an original maturity date of 90 days or less from the date of purchase.

The Company monitors its credit risk by considering factors such as historical experience, credit ratings, current economic conditions, and reasonable and supportable forecasts.

Short-term investments

The Company’s short-term investments are primarily comprised of corporate notes and obligations, U.S. Treasury securities, certificates of deposit, asset-backed securities, commercial paper, U.S. agency obligations, foreign government securities, supranational securities and municipal securities. The Company determines the appropriate classification of its short-term investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its short-term investments as available-for-sale securities as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, the Company classifies its short-term investments, including securities with stated maturities beyond twelve months, within current assets in the condensed consolidated balance sheets.

The Company's short-term investments are recorded at fair value each reporting period. Unrealized gains and losses on these short-term investments are reported as a separate component of accumulated other comprehensive loss in the condensed consolidated balance sheets until realized. Unrealized gains and losses for any short-term investments that management intends

to sell or it is more likely than not that management will be required to sell prior to their anticipated recovery are recorded in other income, net. The Company segments its portfolio based on the underlying risk profiles of the securities and has a zero-loss expectation for U.S. treasury and U.S. government agency securities. The Company regularly reviews the securities in an unrealized loss position and evaluates the current expected credit loss by considering factors such as credit ratings, issuer-specific factors, current economic conditions, and reasonable and supportable forecasts. The Company did not record any material credit losses during the three months ended March 31, 2022 and 2021.

Concentrations of credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, accounts receivable, and short-term investments. The Company places its cash and cash equivalents and short-term investments with well-established financial institutions.

Trade accounts receivable are typically unsecured and are derived from revenue earned from customers located around the world. Two distribution partners accounted for 14% and 34%, respectively, of total trade and other receivables, net as of March 31, 2022. Two distribution partners accounted for 14% and 29% of total trade and other receivables, net as of December 31, 2021. No customer accounted for more than 10% of the Company’s revenue in the periods presented.

Deferred commissions, net

Deferred commissions, net is stated as gross deferred commissions less accumulated amortization. Sales commissions earned by the Company’s sales force and third-party resellers, as well as related payroll taxes, are considered to be incremental and recoverable costs of obtaining a contract with a customer. These amounts have been capitalized as deferred commissions within prepaid and other current assets and other assets on the condensed consolidated balance sheets. The Company deferred incremental costs of obtaining a contract of $7.6 and $4.9 million during the three months ended March 31, 2022 and 2021 respectively.

Deferred commissions, net included in prepaid and other current assets were $32.0 million and $30.8 million as of March 31, 2022 and December 31, 2021, respectively. Deferred commissions, net included in other assets were $32.0 million and $34.6 million as of March 31, 2022 and December 31, 2021, respectively.

Commissions related to new contracts are typically deferred and amortized over a period of benefit of five years. The period of benefit was estimated by considering factors such as historical customer attrition rates, the useful life of the Company’s technology, and the impact of competition in its industry. Commissions that are commensurate with renewal commissions are typically amortized over one year. Amortized costs were $9.0 million and $7.7 million for the three months ended March 31, 2022 and 2021, respectively. Amortized costs are included in sales and marketing expense in the accompanying condensed consolidated statements of operations. There was no material impairment loss in relation to the deferred costs for any period presented.

Property and equipment, net

Equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful life of the related asset, which is generally three to seven years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the related lease.

The following table presents the estimated useful lives of property and equipment:


Property and equipment						Useful life

Buildings						20 to 30 years
Datacenter and other computer equipment						3 to 5 years
Office equipment and other						3 to 7 years
Leasehold improvements						Lesser of estimated useful life or remaining lease term

Lease obligations

The Company leases office space, data centers, and equipment under non-cancelable finance and operating leases with various expiration dates through 2036. The Company determines if an arrangement contains a lease at inception.

Operating lease right-of-use assets and lease liabilities are recognized at the present value of the future lease payments at commencement date. The interest rate implicit in the Company’s operating leases is not readily determinable, and therefore an incremental borrowing rate is estimated to determine the present value of future payments. The estimated incremental borrowing rate factors in a hypothetical interest rate on a collateralized basis with similar terms, payments, and economic environments. Operating lease right-of-use assets also include any prepaid lease payments and lease incentives.

Certain of the operating lease agreements contain rent concession, rent escalation, and option to renew provisions. Rent concession and rent escalation provisions are considered in determining the single lease cost to be recorded over the lease term. Single lease cost is recognized on a straight-line basis over the lease term commencing on the date the Company has the right to use the leased property. The lease terms may include options to extend or terminate the lease. The Company generally uses the base, non-cancelable, lease term when recognizing the lease assets and liabilities, unless it is reasonably certain that the option will be exercised.

In addition, certain operating lease agreements contain tenant improvement allowances from its landlords. These allowances are accounted for as lease incentives and decrease the Company's right-of-use asset and reduce single lease cost over the lease term.

As part of the Company's Virtual First strategy, Dropbox has retained a portion of its office space for in-person collaboration while the remainder will be subleased. During the first quarter of 2022, the Company did not recognize any impairment charge related to right-of-use assets and other lease related property and equipment assets. During the first quarter of 2021, the Company recorded an impairment charge of $17.3 million related to right-of-use assets and other lease related property and real estate assets acquired as part of the acquisition of DocSend in the first quarter of 2021. These impairment charges were recorded as a result of the Company's decision to move towards a Virtual First work model. See Note 9 "Leases" to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further information.

The Company leases certain equipment from various third parties, through equipment finance leases. These leases either include a bargain purchase option, a full transfer of ownership at the completion of the lease term, or the terms of the leases are at least 75 percent of the useful lives of the assets and are therefore classified as finance leases. These leases are capitalized in property and equipment, net and the related amortization of assets under finance leases is included in depreciation and amortization expense in the Company’s condensed consolidated statements of operations. Initial asset values and finance lease obligations are based on the present value of future minimum lease payments.

The Company’s finance lease agreements may contain lease and non-lease components. The non-lease components include payments for support on infrastructure equipment obtained via finance leases, which when not significant in relation to the overall agreement, are combined with the lease components and accounted for together as a single lease component.

Business combinations

The Company uses best estimates and assumptions, including but not limited to, future expected cash flows, expected asset lives, and discount rates, to assign a fair value to the tangible and intangible assets acquired and liabilities assumed in business combinations as of the acquisition date. These estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill.

Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s condensed consolidated statements of operations.

Long-lived assets, including goodwill and other acquired intangible assets, net

The Company evaluates the recoverability of its property and equipment and finite-lived intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review determines that the carrying amount of specific property and equipment or intangible assets is not recoverable, the carrying amount of such assets is reduced to its fair value.

The Company reviews goodwill for impairment at least annually in the fourth quarter, or more frequently if events or changes in circumstances would more likely than not reduce the fair value of its single reporting unit below its carrying value.

The Company has not recorded impairment charges on goodwill or intangible assets for the periods presented in these condensed consolidated financial statements.

During the first quarter of 2021, the Company recorded impairment charges in conjunction with the Company's decision to move towards a Virtual First work model. See Note 9 "Leases" to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further information. The Company did not record impairment during the first quarter of 2022.

Acquired property and equipment and finite-lived intangible assets are amortized over their useful lives. The Company evaluates the estimated remaining useful life of these assets when events or changes in circumstances warrant a revision to the remaining period of amortization. If the Company revises the estimated useful life assumption for any asset, the remaining unamortized balance is amortized or depreciated over the revised estimated useful life on a prospective basis.

Income taxes

Deferred income tax balances reflect the effects of temporary differences between the financial reporting and tax bases of the Company’s assets and liabilities using enacted tax rates expected to apply when taxes are actually paid or recovered. In addition, deferred tax assets are recorded for net operating loss and credit carryforwards.

A valuation allowance is provided against deferred tax assets unless it is more likely than not that they will be realized based on all available positive and negative evidence. Such evidence includes, but is not limited to, recent cumulative earnings or losses, expectations of future taxable income by taxing jurisdiction, and the carry-forward periods available for the utilization of deferred tax assets.

The Company uses a two-step approach to recognizing and measuring uncertain income tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company recognizes interest and penalties related to unrecognized tax benefits as income tax expense.

Although the Company believes that it has adequately reserved for its uncertain tax positions, it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company evaluates its uncertain tax positions on a regular basis and evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of an audit, and effective settlement of audit issues.

To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the (provision for) benefit from income taxes in the period in which such determination is made and could have a material impact on the Company’s financial condition and results of operations.

Fair value measurement

The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which it would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions, and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

Recently issued accounting pronouncements not yet adopted

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers, instead of fair value at the acquisition date in accordance with Topic 805. The amendments in ASU 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC Topic 606. The amendments in ASU 2021-08 are effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance.

In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting guidance on troubled debt restructurings for creditors in ASC 310-40 and amends the guidance on "vintage disclosures" to require disclosure of current-period gross write-offs by year of origination. The ASU also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. The amendments in ASU 2022-02 are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company does not expect the adoption of ASU 2022-02 to have a significant impact on its consolidated financial statements.

Recently adopted accounting pronouncements

In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt - Modifications and Extinguishments (Subtopic 470-50), Compensation - Stock Compensation (Topic 718), and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40) to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The Company adopted ASU 2021-04 on January 1, 2022. The adoption of the standard did not have a material impact on the Company's condensed consolidated financial statements.

In July 2021, the FASB issued ASU 2021-05, Leases (Topic 842), which amends ASC 842 so that lessors are no longer required to recognize a selling loss upon commencement of a lease with variable lease payments that, prior to the amendments, would have been classified as a sales-type or direct financing lease. Furthermore, a lessor must classify as an operating lease any lease that would otherwise be classified as a sales-type or direct financing lease and that would result in the recognition of a selling loss at lease commencement, provided that the lease includes variable lease payments that do not depend on an index or rate. The Company adopted ASU 2021-05 on January 1, 2022. The adoption of the standard did not have a material impact on the Company's condensed consolidated financial statements.

Cash, Cash Equivalents and Short-Term Investments

3 Months Ended

Mar. 31, 2022

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents and Short-Term Investments

The amortized cost, unrealized gains and losses and estimated fair value of the Company's cash, cash equivalents and short-term investments as of March 31, 2022 and December 31, 2021 consisted of the following:


	As of March 31, 2022
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash	$	85.8	$	—	$	—	$	85.8
Cash equivalents
Money market funds	349.7		—		—		$	349.7
Commercial paper	10.0		—		—		$	10.0
Total cash & cash equivalents	$	445.5	$	—	$	—	$	445.5
Short-term investments
Corporate notes and obligations	531.7		—		(15.6)		516.1
U.S. Treasury securities	264.6		—		(9.2)		255.4
Asset backed securities	138.7		—		(4.4)		134.3
Municipal securities	68.7		—		(2.8)		65.9
Commercial paper	24.4		—		—		24.4
Certificates of deposit	19.0		—		—		19.0
U.S. agency obligations	14.5		—		(0.5)		14.0
Foreign government obligations	13.5		—		(0.3)		13.2
Supranational securities	8.0		—		(0.2)		7.8
Total short-term investments	1,083.1		—		(33.0)		1,050.1
Total	$	1,528.6	—		$	(33.0)	$	1,495.6


	As of December 31, 2021
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash	$	142.7	$	—	$	—	$	142.7
Cash equivalents
Money market funds	390.3		—		—		390.3
Total cash & cash equivalents	$	533.0	$	—	$	—	$	533.0
Short-term investments
Corporate notes and obligations	607.4		0.4		(4.0)		603.8
U.S. Treasury securities	240.4		—		(2.9)		237.5
Asset backed securities	140.7		0.1		(1.2)		139.6
Municipal securities	70.5		—		(0.7)		69.8
Commercial paper	61.7		—		—		61.7
Certificates of deposit	32.1		—		—		32.1
Foreign government obligations	18.4		—		(0.1)		18.3
U.S. agency obligations	14.6		—		(0.2)		14.4
Supranational securities	8.0		—		(0.1)		7.9
Total short-term investments	1,193.8		0.5		(9.2)		1,185.1
Total	$	1,726.8	0.5		$	(9.2)	$	1,718.1

Included in cash and cash equivalents is cash in transit from payment processors for credit and debit card transactions of $8.6 million and $8.3 million as of March 31, 2022 and December 31, 2021, respectively.

All short-term investments were designated as available-for-sale securities as of March 31, 2022 and December 31, 2021.

The following table presents the contractual maturities of the Company’s short-term investments as of March 31, 2022:


	As of March 31, 2022
	Amortized cost		Estimated fair value
Due within one year	$	304.2	$	303.0
Due between one to three years	466.6		453.0
Due after three years	312.3		294.1
Total	$	1,083.1	$	1,050.1

The Company had 706 short-term investments in unrealized loss positions as of March 31, 2022. There were no material unrealized losses from short-term investments and no material realized gains or losses from short-term investments that were reclassified out of accumulated other comprehensive loss for the three months ended March 31, 2022 and 2021.

As of March 31, 2022, the Company’s short-term investments portfolio consisted of nine security types, seven of which were in an unrealized loss position. The Company’s short-term investments had unrealized losses of approximately $33.0 million as of March 31, 2022. The following tables present the breakdown of the short-term investments that have been in a continuous unrealized loss position aggregated by investment category, as of March 31, 2022 and December 31, 2021:


	As of March 31, 2022
	Less than 12 months				More than 12 months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Corporate notes and obligations	$	444.2	$	(13.5)	$	28.9	$	(2.1)	$	473.1	$	(15.6)
U.S. Treasury securities	173.7		(5.3)		62.1		(3.9)		235.8		(9.2)
Asset backed securities	117.9		(4.1)		9.5		(0.3)		127.4		(4.4)
Municipal securities	56.3		(2.3)		9.5		(0.5)		65.8		(2.8)
U.S. agency obligations	10.5		(0.3)		3.5		(0.2)		14.0		(0.5)
Foreign government obligations	11.3		(0.2)		1.9		(0.1)		13.2		(0.3)
Supranational securities	6.1		(0.1)		1.6		(0.1)		7.7		(0.2)
Total	$	820.0	$	(25.8)	$	117.0	$	(7.2)	$	937.0	$	(33.0)


	As of December 31, 2021
	Less than 12 months				More than 12 months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Corporate notes and obligations	$	498.6	$	(4.1)	$	—	$	—	$	498.6	$	(4.1)
U.S. Treasury securities	218.0		(2.9)		—		—		218.0		(2.9)
Asset backed securities	120.7		(1.2)		—		—		120.7		(1.2)
Municipal securities	66.0		(0.7)		—		—		66.0		(0.7)
U.S. agency obligations	14.4		(0.2)		—		—		14.4		(0.2)
Foreign government obligations	15.4		—		—		—		15.4		—
Supranational securities	7.9		(0.1)		—		—		7.9		(0.1)
Total	$	941.0	$	(9.2)	$	—	$	—	$	941.0	$	(9.2)

Unrealized losses on short-term investments have not been recorded into income because management does not intend to sell nor will be required to sell these securities prior to their anticipated recovery, and for which the decline in fair value is largely due to changes in interest rates. The credit ratings associated with the corporate notes and obligations are mostly unchanged, are highly rated and the issuers continue to make timely principal and interest payments.

The Company recorded interest income from its cash, cash equivalents, and short-term investments of $1.8 million and $1.9 million during the three months ended March 31, 2022 and 2021, respectively.

Fair Value Measurements

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

The Company measures its financial instruments at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis using the input categories discussed in Note 1:


	As of March 31, 2022
	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	349.7	$	—	$	—	$	349.7
Commercial paper	—		10.0		—		10.0
Total cash equivalents	$	349.7	$	10.0	$	—	$	359.7
Short-term investments
Corporate notes and obligations	—		516.1		—		516.1
U.S. Treasury securities	—		255.4		—		255.4
Asset backed securities	—		134.3		—		134.3
Commercial paper	—		24.4		—		24.4
Municipal securities	—		65.9		—		65.9
Certificates of deposit	—		19.0		—		19.0
U.S. agency obligations	—		14.0		—		14.0
Foreign government obligations	—		13.2		—		13.2
Supranational securities	—		7.8		—		7.8
Total short-term investments	—		1,050.1		—		1,050.1
Total	$	349.7	$	1,060.1	$	—	$	1,409.8


	As of December 31, 2021
	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	390.3	$	—	$	—	$	390.3
Total cash equivalents	$	390.3	$	—	$	—	$	390.3
Short-term investments
Corporate notes and obligations	—		603.8		—		603.8
U.S. Treasury securities	—		237.5		—		237.5
Asset backed securities	—		139.6		—		139.6
Municipal securities	—		69.8		—		69.8
Commercial paper	—		61.7		—		61.7
Certificates of deposit	—		32.1		—		32.1
Foreign government obligations	—		18.3		—		18.3
U.S. agency obligations	—		14.4		—		14.4
Supranational securities	—		7.9		—		7.9
Total short-term investments	—		1,185.1		—		1,185.1
Total	$	390.3	$	1,185.1	$	—	$	1,575.4

The Company has an investment in a non-marketable equity security in a privately held company without a readily determinable market value. The investments had a carrying value of $5.6 million and was categorized as Level 3 as of March 31, 2022 and December 31, 2021.

The Company had no transfers between levels of the fair value hierarchy.

The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable and accounts payable approximate fair value due to their short-term maturities and are excluded from the fair value table above.

The Company had $695.8 million in aggregate principal amount of 0% convertible senior notes due in 2026 (the "2026 Notes"), and $693.3 million in aggregate principal amount of 0% convertible senior notes due in 2028 (the "2028 Notes" and together with the 2026 Notes, the "Notes"), outstanding as of March 31, 2022. Refer to Note 8 "Debt" for further details on the 2026 Notes and 2028 Notes.

The estimated fair value of the 2026 Notes and the 2028 Notes, based on a market approach as of March 31, 2022 was approximately $659.5 million and $656.9 million, respectively. The Notes were categorized as Level 2 instruments as the estimated fair value was determined based on the estimated or actual bids and offers of the Notes in an over-the-counter market on the last business day of the period.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Property and Equipment, Net

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and equipment, net consisted of the following:


	As of
	March 31, 2022		December 31, 2021
Data center and other computer equipment	$	632.4	$	634.5
Furniture and fixtures	21.8		21.7
Leasehold improvements	109.0		106.7
Construction in progress	16.5		11.7
Total property and equipment	779.7		774.6
Accumulated depreciation and amortization	(463.6)		(452.6)
Property and equipment, net	$	316.1	$	322.0

During the first quarter of 2022, the Company retired $24.5 million of fully depreciated data center assets that are no longer in use.

The Company leases certain infrastructure, computer equipment, and furniture from various third parties, through equipment finance leases. Infrastructure assets as of March 31, 2022 and December 31, 2021, respectively, included a total of $451.7 million and $469.4 million acquired under finance lease agreements. These leases are capitalized in property and equipment, and the related amortization of assets under finance leases is included in depreciation and amortization expense. The accumulated depreciation of the equipment under finance leases totaled $230.7 million and $237.6 million as of March 31, 2022 and December 31, 2021, respectively.

Depreciation expense related to property and equipment was $35.4 million and $31.5 million for the three months ended March 31, 2022 and 2021, respectively

Business Combinations

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Business Combinations

On March 22, 2021, the Company acquired all outstanding stock of DocSend, a secure document sharing and analytics company. The Company believes the combination of Dropbox, HelloSign, and DocSend will help customers across industries manage end-to-end document workflows—from content collaboration to sharing and e-signature—giving them more control over their business results. The results of DocSend's operations have been included in the Company’s condensed consolidated results of operations since the date of acquisition.

The purchase consideration transferred consisted of the following:


	Purchase consideration
Cash paid to common and preferred stockholders and vested option holders	$	125.5
Transaction costs paid by Dropbox on behalf of DocSend	5.0
Fair value of assumed DocSend options attributable to pre-combination services(1)	1.2
Purchase price adjustments	0.1
Total purchase consideration	$	131.8

(1) The fair value of options assumed was based upon the Black-Scholes option-pricing model.

In addition to the total purchase consideration above, the Company has compensation agreements with key DocSend personnel consisting of $30.7 million in future cash payments subject to ongoing employee service. The related expenses are recognized within sales and marketing and research and development expenses over the required service period of three years. The payments began in the first quarter of 2022, with $10.2 million paid during the three months ended March 31, 2022. The remaining balance of $20.5 million will be paid out over the next two years in accordance with the acquisition agreement.

The purchase consideration was allocated to the tangible and intangible assets and liabilities acquired as of the acquisition date, with the excess recorded to goodwill as shown below.


Assets acquired:
Cash and cash equivalents	$	5.1
Acquisition-related intangible assets	20.6
Accounts receivable, prepaid and other assets	6.1
Total assets acquired	$	31.8

Liabilities assumed:
Accounts payable, accrued and other liabilities	$	6.4
Deferred revenue	1.9
Deferred tax liability	1.9
Total liabilities assumed	10.2
Net assets acquired, excluding goodwill	21.6
Total purchase consideration	131.8
Goodwill(2)	$	110.2

(2) The goodwill recognized was primarily attributable to the opportunity to expand the user base of the Company's platform. The goodwill is not deductible for U.S. federal income tax purposes.

The fair value of the separately identifiable finite-lived intangible assets acquired and estimated weighted average useful lives are as follows:


	Estimated fair values		Estimated weighted average useful lives (In years)
Developed technology	$	11.5	5.0
Customer relationships	8.1		5.0
Trade name	1.0		5.0
Total acquisition-related intangible assets	$	20.6

The fair values of the acquisition-related intangible assets were determined using the following methodologies: the multi-period excess earnings method for customer relationships, and the relief from royalty method for developed technology, and the trade name, respectively. The valuation model inputs required the application of significant judgment by management. The acquired intangible assets have a total weighted average amortization period of 5.0 years.

One-time acquisition-related diligence costs of $1.2 million were expensed within general and administrative expenses as incurred during the three months ended March 31, 2021.

Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets consisted of the following:


	As of March 31,		As of December 31,		Weighted- average remaining useful life (In years) As of March 31,
	2022		2021		2022
Developed technology	$	45.9	$	45.9	3.5
Customer relationships	28.6		28.6		3.4
Patents	19.5		19.5		5.1
Software	9.0		9.0		1.1
Trademarks and trade names	5.6		5.6		2.5
Licenses	4.6		4.6		—
Assembled workforce in asset acquisitions	3.0		3.0		—
Other	1.2		0.8		3.5
Total intangibles	117.4		117.0
Accumulated amortization	(67.4)		(63.4)
Intangible assets, net	$	50.0	$	53.6

Amortization expense was $4.0 million and $3.1 million for the three months ended March 31, 2022 and 2021, respectively.

Expected future amortization expense for intangible assets as of March 31, 2022 is as follows:


2022	11.4
2023	14.9
2024	10.5
2025	8.0
2026	3.7
Thereafter	1.5
Total	$	50.0

Goodwill

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. The changes in the carrying amounts of goodwill were as follows:


Balance at December 31, 2021	$	356.6
Effect of foreign currency translation	(0.7)
Balance at March 31, 2022	$	355.9

Goodwill amounts are not amortized, but tested for impairment on an annual basis. There was no impairment of goodwill as of March 31, 2022 and December 31, 2021.

Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

Revolving credit facility

In February 2018, the Company entered into an amendment to the revolving credit facility to, among other things, permit the Company to make certain investments, enter into an unsecured standby letter of credit facility and increase its standby letter of credit sublimit to $187.5 million. The Company increased its borrowing capacity under the revolving credit facility from $600.0 million to $725.0 million. In February 2021, the Company amended the revolving credit facility to decrease its borrowing capacity under the revolving credit facility from $725.0 million to $500.0 million and extended the term of the agreement through February 2026. The Company may from time to time request increases in its borrowing capacity under the revolving credit facility of up to $250.0 million, provided no event of default has occurred or is continuing or would result from such increase. In conjunction with the February 2021 amendment, the Company paid upfront issuance fees of $1.7 million, which are being amortized over the remaining term of the agreement, and wrote-off $0.2 million in unamortized deferred debt issuance costs.

Pursuant to the terms of the revolving credit facility, the Company may issue letters of credit under the revolving credit facility, which reduce the total amount available for borrowing. Pursuant to the terms of the revolving credit facility, the Company is required to pay an annual commitment fee that accrues at a rate of 0.20% per annum on the unused portion of the borrowing commitments under the revolving credit facility. In addition, the Company is required to pay a fee in connection with letters of credit issued under the revolving credit facility, which accrues at a rate of 1.375% per annum on the amount of such letters of credit outstanding. There is an additional fronting fee of 0.125% per annum multiplied by the average aggregate daily maximum amount available under all letters of credit. Borrowings under the revolving credit facility bear interest, at the Company’s option, at an annual rate based on LIBOR plus a spread of 1.375% or at an alternative base rate plus a spread of 0.375%.

The revolving credit facility contains customary conditions to borrowing, events of default and covenants, including covenants that restrict the Company’s ability to incur indebtedness, grant liens, make distributions to holders of the Company or its subsidiaries’ equity interests, make investments, or engage in transactions with its affiliates. In addition, the revolving credit facility contains financial covenants, including a consolidated leverage ratio incurrence covenant and a minimum liquidity balance of $100.0 million, which includes any available borrowing capacity. The Company was in compliance with the covenants of the revolving credit facility as of March 31, 2022 and December 31, 2021, respectively.

The Company had an aggregate of $52.1 million of letters of credit outstanding under the revolving credit facility as of March 31, 2022, and the Company’s total available borrowing capacity under the revolving credit facility was $447.9 million as of March 31, 2022. The Company’s letters of credit have final expiration dates through 2036.

Convertible senior notes

During the first quarter of 2021, the Company issued $695.8 million aggregate principal amount of the 2026 Notes. Additionally, during the first quarter of 2021, the Company issued $693.3 million aggregate principal amount of the 2028 Notes. The Notes were issued in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. The net proceeds from the sale of the Notes were approximately $1.4 billion after deducting offering and issuance costs related to the Notes.

The Notes of each series do not bear regular interest. The Notes of each series may bear special interest as the remedy relating to the Company’s failure to comply with certain of its reporting obligations. The Company has complied with this reporting obligations from the issuance date through March 31, 2022. The 2026 Notes will mature on March 1, 2026, and the 2028 Notes will mature on March 1, 2028, in each case, unless earlier converted, redeemed or repurchased.

The initial conversion rate for the 2026 Notes is 26.1458 shares of the Company’s Class A common stock per $1,000 principal amount of such Note, which is equivalent to an initial conversion price of approximately $38.25 per share. The initial conversion rate for the 2028 Notes is 28.2889 shares of Class A common stock per $1,000 principal amount of such Notes, which is equivalent to an initial conversion price of approximately $35.35 per share. The conversion rate for each series of Notes will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid special interest. In addition, upon the occurrence of a make-whole fundamental change (as defined in the relevant indentures governing the Notes) or a notice of redemption, the Company will, in certain circumstances, increase the conversion

rate of the relevant series of Notes by a number of additional shares for a holder that elects to convert all or a portion of its Notes of such series in connection with such make-whole fundamental change or who elects to convert such Notes that are subject to such notice of redemption. The conversion rate for the 2026 Notes and the 2028 Notes shall not exceed 43.1406 shares per $1,000 principal amount of such Notes, subject to certain customary anti-dilution adjustments (as defined in the relevant indentures governing the Notes). There have been no changes to the initial conversion price of the Notes since issuance as of March 31, 2022.

Upon conversion, the principal portion of the Notes of the applicable series being converted will be settled in cash, and any amount in excess of the principal portion of such Notes will be settled in cash or shares of the Company’s Class A common stock or any combination thereof at the Company’s option. The if-converted value of the 2026 Notes and the 2028 Notes was below the principal value of the respective Notes as of March 31, 2022. In addition, during the three months ended March 31, 2022 and 2021 the conditions allowing holders of the Notes to convert were not met. As a result, the Notes were not convertible during the three months ended March 31, 2022 and 2021.

Prior to the close of business on the business day immediately preceding December 1, 2025, in the case of the 2026 Notes, and prior to the close of business on the business day immediately preceding December 1, 2027, in the case of the 2028 Notes, the Notes of the applicable series will be convertible only under the following circumstances: (1) during any calendar quarter commencing after June 30, 2021 (and only during such calendar quarter), if the last reported sale price of the Class A common stock for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the relevant series of Notes on each applicable trading day; (2) during the five business day period after any five consecutive trading day period in which, for each trading day of that period, the trading price per $1,000 principal amount of 2026 Notes or 2028 Notes, as applicable, for such trading day was less than 98% of the product of the last reported sale price of the Class A common stock and the conversion rate for such series of Notes on each such trading day; (3) if the Company calls any or all of the Notes for redemption, such Notes of the applicable series called for redemption may be converted at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate transactions.

On or after December 1, 2025, in the case of the 2026 Notes, and on or after December 1, 2027, in the case of the 2028 Notes, until the close of business on the second scheduled trading day immediately preceding the relevant maturity date, holders of the relevant series of Notes may convert all or a portion of their Notes of such series regardless of the foregoing conditions.

The Company may redeem for cash all or any part of the Notes, at its option, on or after March 6, 2024, in the case of the 2026 Notes, and on or after March 6, 2025, in the case of the 2028 Notes, if the last reported sale price of its Class A common stock has been at least 130% of the conversion price for the relevant series of Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the series of Notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date. No sinking fund is provided for the Notes.

Upon the occurrence of a fundamental change (as defined in the relevant indentures governing the Notes) prior to the relevant maturity date, holders of the relevant series of Notes may require the Company to repurchase all or a portion of the Notes of such series for cash at a price equal to 100% of the principal amount of the series of Notes to be repurchased, plus any accrued and unpaid special interest to, but excluding, the fundamental change repurchase date. Additionally, and upon events of default (as defined in the relevant indentures governing the Notes), the maturity of the Notes may be accelerated.

The Notes are the Company’s general unsecured obligations and will rank senior in right of payment to any existing and future indebtedness that is contractually subordinated to the Notes; rank equal in right of payment with the Company’s existing and future senior unsecured indebtedness that is not so subordinated; effectively rank junior in right of payment to any of the Company’s existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; and be structurally subordinated to all indebtedness and other liabilities (including trade payables) of subsidiaries of the Company.

In accounting for the Notes, issuance costs of $11.0 million and $11.0 million for the 2026 Notes and the 2028 Notes were deducted from the carrying value of the Notes in the consolidated balance sheet. Issuance costs will be recognized as interest expense over the five-year term and seven-year term for the 2026 Notes and the 2028 Notes, respectively.

The following is a summary of the Company’s convertible senior notes as of March 31, 2022 and December 31, 2021.


	2026 Notes		2028 Notes		Total
March 31, 2022
Principal balance	$	695.8	$	693.3	$	1,389.1
Unamortized issuance costs	(8.6)		(9.3)		(17.9)
Carrying value, net	687.2		684.0		1,371.2

December 31, 2021
Principal balance	$	695.8	$	693.3	$	1,389.1
Unamortized issuance costs	(9.1)		(9.7)		(18.8)
Carrying value, net	686.7		683.6		1,370.3

The Company recognized $0.5 million and $0.2 million in interest expense for the 2026 Notes and $0.4 million and $0.2 million in interest expense for the 2028 Notes during the three months ended March 31, 2022 and 2021, respectively, with such interest expense solely consisting of amortization of issuance costs. The effective interest rate for the 2026 Notes and the 2028 Notes was 0.32% and 0.22%, respectively, as of March 31, 2022.

Maturities on the Company's long-term convertible debt are as follows:


	Convertible Debt
April 1, 2022 through December 31, 2022	$	—
2023	—
2024	—
2025	—
2026	695.8
2027	—
Thereafter	693.3
Total	$	1,389.1

Convertible Note Hedges and Warrants

Concurrent with the offering of the Notes, the Company entered into convertible note hedge transactions with certain counterparties whereby the Company had the option to purchase a total of approximately 18.2 million shares for note hedges expiring in March 2026 (the “2026 Note Hedges”) and 19.6 million shares for note hedges expiring in March 2028 (the “2028 Note Hedges”, together with the 2026 Note Hedges, the “Note Hedges”), respectively, of its common stock at a price of approximately $38.25 and $35.35 per share, respectively. The aggregate cost of the convertible note hedge transactions was $265.3 million.

The Note Hedges, or a portion thereof, are exercisable upon conversion of the Notes and the satisfaction of certain conditions set forth in the Note Hedges. Additionally, the Note Hedges may be terminated and early settled upon the occurrence of certain events, including certain merger events, events of default, and upon a fundamental change (as defined in the relevant indentures for the Notes). The Note Hedges are settleable in cash, shares or a combination of cash and shares, at the option of the Company, and the settlement alternative will be the same as the settlement alternative of the conversion spread for the respective Notes.

The convertible note hedge transactions are expected generally to reduce the potential dilution to the Class A common stock upon conversion of the relevant series of Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of such converted Notes, as the case may be, in the event that the market price per share of the Class A common stock, as measured under the terms of the convertible note hedge transactions, is greater than the applicable

strike price of those convertible note hedge transactions. As of March 31, 2022, the Company’s stock price was below the exercise price of the respective Note Hedges.

In addition, the Company sold warrants to certain counterparties whereby the holders of the warrants had the option to purchase a total of approximately 18.1 million shares underlying warrants expiring in 2026 (the “2026 Warrants”) and 20.1 million shares underlying warrants expiring in 2028 (the “2028 Warrants”, together with the 2026 Warrants, the “Warrants”), respectively, of the Company’s Class A common stock at an initial strike price of $46.36 and $46.36 per share, respectively. The Company received aggregate cash proceeds of $202.9 million from the sale of these Warrants.

If the market price per share of the Company’s Class A common stock, as measured under the terms of the Warrants, exceeds the strike price of the Warrants, the Warrants could have a dilutive effect, unless the Company elects, subject to certain conditions, to settle the Warrants in cash. The Warrants are only exercisable on the applicable expiration dates in accordance with the terms of the Warrants. Subject to the other terms of the Warrants, the first expiration date applicable to the 2026 Warrants and to the 2028 Warrants is June 1, 2026, and June 1, 2028, respectively, and the final expiration date applicable to the 2026 Warrants and 2028 Warrants is August 10, 2026 and August 10, 2028, respectively. As of March 31, 2022, the Company’s Class A common stock price was below the exercise price of the Warrants.

Taken together, the purchase of the Note Hedges and the sale of the Warrants are intended to reduce potential dilution from the conversion of the 2026 Notes and the 2028 Notes, and to effectively increase the overall conversion price from $38.25 per share to $46.36 per share and from $35.35 per share to $46.36 for the 2026 Notes and the 2028 Notes, respectively.

The Note Hedges and the Warrants are equity-classified instruments as a result of being indexed to the Company’s Class A common stock and meeting certain equity classification criteria, and the instruments will not be remeasured in subsequent periods as long as the instruments continue to meet these accounting criteria. The premium paid for the Note Hedges has been included as a net reduction to additional paid-in capital within stockholders’ deficit, and the premium received for the Warrants has been included as a net increase to additional paid-in capital within stockholders' deficit.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
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-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
-Subparagraph (SX 210.4-08(c))
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-Publisher FASB
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

The Company has operating leases for corporate offices and data centers, and finance leases for infrastructure and office equipment. The Company’s leases have remaining lease terms of 1 year to 14 years, some of which include options to extend the leases for up to 5 years.

The Company also has subleases for several floors of its former corporate offices. The Company classifies its subleases as operating leases. The subleases have remaining lease terms of 1 year to 9 years. Sublease income, which is recorded as a reduction of rental expense, was $4.5 million and $3.9 million during the three months ended March 31, 2022 and 2021 respectively.

Future minimum lease payments under non-cancellable leases as of March 31, 2022 were as follows:


Year ending December 31,	Operating leases(1)		Finance leases
2022 (excluding the three months ended March 31, 2022)	$	84.3	$	96.4
2023	96.6		98.5
2024	86.4		63.4
2025	81.0		25.4
2026	61.4		1.2
Thereafter	460.2		—
Total future minimum lease payments	869.9		284.9
Less imputed interest	(151.0)		(9.4)
Less tenant improvement receivables	(4.0)		—
Total liability	$	714.9	$	275.5

(1) Consists of future non-cancelable minimum rental payments under operating leases for the Company’s corporate offices and data centers where the Company has possession, excluding rent payments from the Company’s sub-tenants and variable operating expenses.

Future non-cancelable rent payments from the Company's subtenants as of March 31, 2022 were as follows:


Year ending December 31,	Operating leases
2022 (excluding the three months ended March 31, 2022)	$	17.8
2023	14.6
2024	13.6
2025	12.6
2026	8.9
Thereafter	13.3
Total future sublease rent payments	80.8
Less sub-tenant incentive	(1.1)
Total future sublease rent payments, net	$	79.7

In 2017, the Company signed a 15 year lease agreement for office space in San Francisco, California, to serve as its corporate headquarters which commenced in 2018. The Company’s obligations under the lease are supported by a $34.2 million letter of credit, which reduced the borrowing capacity under the revolving credit facility. As of March 31, 2022, the Company's remaining minimum obligation for its headquarters was $590.7 million.

In the fourth quarter of 2020, the Company announced a Virtual First work model pursuant to which remote work has become the primary experience for all of its employees. As part of the Virtual First strategy, Dropbox retained a portion of its office space to be used for the Company’s team collaboration use and a portion will be marketed for sublease. The Company evaluated certain of its right-of-use assets and other lease related assets including leasehold improvements, furniture and fixtures, and computer equipment for impairment under ASC 360.

In connection with this analysis, the Company reassessed its real estate asset groups and estimated the fair value of the office space to be subleased using current market conditions. Where the carrying value of the individual asset groups exceeded their fair value, an impairment charge was recognized for the difference.

The company recorded total impairment of $17.3 million for right-of-use and other lease related assets during the three months ended March 31, 2021. During the three months ended March 31, 2022, the Company did not record impairment.

As of March 31, 2022, the Company has sublease commitments of $32.8 million that have not yet commenced, with sublease terms of 10 to 11 years. The company has no other commitments for operating leases that have not commenced.

Leases

Future minimum lease payments under non-cancellable leases as of March 31, 2022 were as follows:


Year ending December 31,	Operating leases(1)		Finance leases
2022 (excluding the three months ended March 31, 2022)	$	84.3	$	96.4
2023	96.6		98.5
2024	86.4		63.4
2025	81.0		25.4
2026	61.4		1.2
Thereafter	460.2		—
Total future minimum lease payments	869.9		284.9
Less imputed interest	(151.0)		(9.4)
Less tenant improvement receivables	(4.0)		—
Total liability	$	714.9	$	275.5

Future non-cancelable rent payments from the Company's subtenants as of March 31, 2022 were as follows:


Year ending December 31,	Operating leases
2022 (excluding the three months ended March 31, 2022)	$	17.8
2023	14.6
2024	13.6
2025	12.6
2026	8.9
Thereafter	13.3
Total future sublease rent payments	80.8
Less sub-tenant incentive	(1.1)
Total future sublease rent payments, net	$	79.7

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal matters From time to time, the Company is a party to a variety of claims, lawsuits, and proceedings which arise in the ordinary course of business, including claims of alleged infringement of intellectual property rights. The Company records a liability when it believes that it is probable that a loss will be incurred and the amount of loss or range of loss can be reasonably estimated. In its opinion, resolution of pending matters is not likely to have a material adverse impact on its condensed consolidated results of operations, cash flows, or its financial position. Given the unpredictable nature of legal proceedings, the Company bases its estimate on the information available at the time of the assessment. As additional information becomes available, the Company reassesses the potential liability and may revise the estimate. The Company is currently involved in California state court litigation asserting violations of federal securities laws, for allegedly making materially false and misleading statements in, or omitting material information from, the Company's initial public offering ("IPO") registration statement. Separate lawsuits making the same or similar allegations were filed in federal court in October 2019, and were resolved in a settlement approved by the federal court in December 2021. The California state court litigation consolidated four putative class action lawsuits that were filed on August 30, 2019, September 5, 2019, September 13, 2019, and October 3, 2019, in the Superior Court of the State of California, San Mateo County, against the Company, certain of its officers and directors, underwriters of its IPO, and Sequoia Capital XII, L.P. and certain of its affiliated entities (collectively, the “Dropbox Defendants”). On May 11, 2020, the Dropbox Defendants filed a motion to dismiss the consolidated state court case based on the exclusive federal forum provisions contained in the Company's amended and restated bylaws. On December 4, 2020, the state court issued an order granting the Company's motion to dismiss the consolidated state court case. On December 15, 2020, the state court plaintiffs filed a notice of appeal of this order. The appeal was fully briefed and an oral argument has been scheduled. The Company believes the appeal and claims are without merit and intends to vigorously defend against them. Indemnification The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims. Other commitments Other commitments include payments to third-party vendors for services related to the Company’s infrastructure, infrastructure warranty contracts, and asset retirement obligations for office modifications. There have been no material changes in the Company's other commitments, as disclosed in the Annual Report.

Accrued and Other Current Liabilities

3 Months Ended

Mar. 31, 2022

Payables and Accruals [Abstract]

Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following:


	As of
	March 31, 2022		December 31, 2021
Non-income taxes payable	$	85.5	$	77.4
Accrued legal and other external fees	25.4		24.0
Other accrued and current liabilities	44.3		39.4
Total accrued and other current liabilities	$	155.2	$	140.8

Stockholders’ Deficit

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Stockholders’ Deficit

Common stock

The Company’s amended and restated certificate of incorporation authorizes the issuance of Class A common stock, Class B common stock, and Class C common stock. Holders of Class A common stock, Class B common stock, and Class C common stock are entitled to dividends on a pro rata basis, when, as, and if declared by the Company’s Board of Directors, subject to the rights of the holders of the Company’s preferred stock. Holders of Class A common stock are entitled to one vote per share, holders of Class B common stock are entitled to 10 votes per share, and holders of Class C common stock are entitled to zero votes per share.

As of March 31, 2022, the Company had authorized 2,400.0 million shares of Class A common stock, 475.0 million shares of Class B common stock, and 800.0 million shares of Class C common stock, each at par value of $0.00001. Holders of Class B common stock voluntarily converted 0.2 million and 0.3 million shares into an equivalent number of shares of Class A common stock during the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, 284.4 million shares of Class A common stock, 82.6 million shares of Class B common stock, and no shares of Class C common stock were issued and outstanding. As of December 31, 2021, 292.7 million shares of Class A common stock, 82.8 million shares of Class

B common stock, and no shares of Class C common stock were issued and outstanding. Class A shares issued and outstanding as of March 31, 2022 and December 31, 2021 exclude unvested restricted stock awards granted to certain executives. Class A shares issued and outstanding also excludes 8.2 million unvested restricted stock awards granted to one of the Company's co-founders as of March 31, 2022 and December 31, 2021, respectively. See "Co-Founder Grant" section below for further details.

Preferred stock

The Company's Board of Directors will have the authority, without further action by the Company's stockholders, to issue up to 240.0 million shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by the Board of Directors.

Stock repurchase program

In February 2020, the Company's Board of Directors approved a stock repurchase program for the repurchase of up to $600 million of the Company’s outstanding shares of Class A common stock. In February 2021, the Board of Directors authorized the Company to repurchase up to an additional $1 billion of the Company's outstanding shares of Class A common stock. The Company completed the February 2020 stock repurchase program of up to $600 million during the three months ended March 31, 2021. In February 2022, the Board of Directors authorized the Company to repurchase up to an additional $1.2 billion of the Company's outstanding shares of Class A common stock. Share repurchases will be made from time to time in private transactions or open market purchases, as permitted by securities laws and other legal requirements and will be subject to a review of the circumstances in place at that time, including prevailing market prices. The program does not obligate the Company to repurchase any specific number of shares and may be discontinued at any time.

During the three months ended March 31, 2022 and 2021, respectively, the Company repurchased and subsequently retired 11.0 million and 18.6 million shares of its Class A common stock, respectively, for an aggregate amount of $259.9 million and $431.9 million, respectively. The amount for the three months ended March 31, 2021 includes $200.0 million in repurchases of 8.6 million shares of our Class A common stock in conjunction with the issuance of the Notes, which was outside of our stock repurchase program.

Equity incentive plans

Under the 2018 Plan, the Company may grant stock-based awards to purchase or directly issue shares of common stock to employees, directors, and consultants. Options are granted at a price per share equal to the fair market value of the Company's common stock at the date of grant. Options granted are exercisable over a maximum term of 10 years from the date of grant and generally vest over a period of four years. RSUs and RSAs are also granted under the 2018 Plan. The 2018 Plan will terminate 10 years after the later of (i) its adoption or (ii) the most recent stockholder-approved increase in the number of shares reserved under the 2018 Plan, unless terminated earlier by the Company's Board of Directors. The 2018 Plan was adopted on March 22, 2018.

In connection with the acquisition of DocSend, the Company assumed unvested stock options and an immaterial number of unvested RSUs that had been granted under DocSend's 2013 Stock Plan and DocSend's 2015 Stock Option and Grant Plan.

As of March 31, 2022, there were 27.5 million stock-based awards issued and outstanding and 112.8 million shares available for issuance under the Dropbox Equity Incentive Plans, HelloSign's 2011 Equity Incentive Plan, DocSend's 2013 Stock Plan and DocSend's 2015 Stock Option and Grant Plan (collectively, the "Plans").

Stock option and restricted stock activity for the Plans was as follows for the three months ended March 31, 2022:


		Options outstanding						Restricted stock outstanding
	Number of shares available for issuance under the Plans	Number of shares outstanding under the Plans	Weighted- average exercise price per share		Weighted- average remaining contractual term (In years)	Aggregate intrinsic value		Number of Plan shares outstanding	Weighted- average grant date fair value per share
Balance at December 31, 2021	95.2	0.9	$	12.09	5.4	$	10.0	27.8	$	24.17
Additional shares authorized	18.8	—	—		—	—		—	—

Options exercised and restricted stock units and awards released	—	(0.1)	2.05		—	—		(3.9)	24.65
Options and restricted stock units and awards canceled	2.0	—	4.86		—	—		(1.9)	22.29
Shares withheld related to net share settlement of restricted stock units and awards	1.5	—	—		—	—		—	24.85
Options and restricted stock units and awards granted	(4.7)	—	—		—	—		4.7	24.04
Balance as of March 31, 2022	112.8	0.8	$	13.38	5.0	$	7.1	26.7	$	24.22
Vested at March 31, 2022		0.5	$	17.53	4.0	$	3.2	—	$	—
Unvested at March 31, 2022		0.3	$	3.20		$	3.9	26.7	$	24.22

The following table summarizes information about the pre-tax intrinsic value of options exercised during the three months ended March 31, 2022 and 2021:


	Three Months Ended March 31,
	2022		2021
Intrinsic value of options exercised	$	1.4	$	4.7

As of March 31, 2022, unamortized stock-based compensation related to unvested stock options, restricted stock awards (excluding the Co-Founder Grant), and RSUs was $603.6 million. The weighted-average period over which such compensation expense will be recognized if the requisite service is provided is approximately 2.7 years as of March 31, 2022.

Assumed stock options

In connection with the acquisition of DocSend the Company assumed 0.4 million unvested stock options which were valued using the Black-Scholes option-pricing model. The fair value of stock options assumed were estimated using the following assumptions:


Expected volatility	47	%
Expected term (in years)	2.0 - 6.8
Risk-free interest rate	0.15% - 1.29%
Dividend yield	—	%

Expected volatility. The expected volatility is based on the Company's historical volatility. Management believes this is the best estimate of the expected volatility over the expected life of its stock options.

Expected term. The Company determines the expected term based on the average period the stock options are expected to remain outstanding, generally calculated as the midpoint of the stock options’ remaining vesting term and contractual expiration period, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior.

Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury security in effect at the time the options were assumed for maturities corresponding with the expected term of the option.

Expected dividend yield. The Company has not paid and does not expect to pay dividends. Consequently, the Company uses an expected dividend yield of zero.

In connection with the acquisition of DocSend, the estimated weighted-average grant date fair value for stock options assumed was $25.28 per share and a total fair value of $9.3 million, of which, $8.1 million will be recognized as post-combination stock-based compensation expense.

Co-Founder Grant

In December 2017, the Board of Directors approved the Company's Co-Founder Grant, consisting of 10.3 million shares of Class A common stock in the form of RSAs which were granted to Drew Houston, the Company’s co-founder and Chief Executive Officer. This Co-Founder Grant has service-based, market-based, and performance-based vesting conditions. The Co-Founder Grant is excluded from Class A common stock issued and outstanding until the satisfaction of these vesting conditions. The Co-Founder Grant also provides the holder with certain stockholder rights, such as the right to vote the shares with the other holders of Class A common stock and a right to cumulative declared dividends.

The Co-Founder Grant is eligible to vest over the ten-year period following the date the Company’s shares of Class A common stock commenced trading on the Nasdaq Global Select Market in connection with the Company’s IPO. The Co-Founder Grant is comprised of nine tranches that are eligible to vest based on the achievement of stock price goals, each of which are referred to as a Stock Price Target, measured over a consecutive thirty-day trading period during the Performance Period. The Performance Period began on January 1, 2019.

During the first four years of the Performance Period, no more than 20% of the shares subject to the Co-Founder Grant would be eligible to vest in any calendar year. After the first four years, all shares are eligible to vest based on the achievement of the Stock Price Targets.

The first tranche of Mr. Houston's Co-Founder Grant, or 2.1 million shares of Class A common stock, vested in the fourth quarter of 2021. The stock-based compensation expense for Mr. Houston's Co-Founder Grant is recognized utilizing the accelerated attribution method over the requisite service period identified as the derived service period over which the market conditions are expected to be achieved, and is not reversed if the market conditions are not satisfied. Therefore no incremental stock-based compensation was recognized upon vesting of these RSAs. From time to time, directors, officers, and employees of the Company enter into 10b5-1 plans. Mr. Houston adopted a 10b5-1 plan in June 2021, pursuant to which a portion of the shares issued upon achievement of the performance targets under his Co-Founder Award (the "vested shares") were sold to satisfy income taxes related to the vesting of the Co-Founder Award and, as the Company’s share price was below the share price established in Mr. Houston's 10b5-1 plan, the remainder of the vested shares were not sold. If the Company’s share price reaches or exceeds the share price established in Mr. Houston's 10b5-1 plan prior to the date on which the term of such 10b5-1 plan expires, the remainder of the vested shares will be sold.

The Company recognized stock-based compensation expense related to the Co-Founder Grant of $3.6 million and $3.6 million during the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, unamortized stock-based compensation expense related to the Co-Founder Grant was $17.5 million.

Net Income Per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Net Income Per Share

The Company computes net income per share using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock share equally in the Company’s net income and losses.

Basic net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of the Class A and Class B common stock outstanding.

Diluted net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of diluted common shares outstanding. The computation of the diluted net income per share of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted net income per share of Class B common stock does not assume the conversion of those shares to Class A common stock. The dilutive effect of potentially dilutive common shares is reflected in diluted earnings per share by application of the if-converted method for the 2026 Notes and the 2028 Notes, and by application of the treasury stock method for the Company's other potentially dilutive securities.

The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in millions, except for per share amounts):


	Three Months Ended March 31,				Three Months Ended March 31,
	2022				2021
	Class A		Class B		Class A		Class B
Basic net income per share:
Numerator
Net income attributable to common stockholders	$	61.9	$	17.8	$	37.7	$	9.9
Denominator
Weighted-average number of common shares outstanding used in computing basic net income per share	288.0		82.7		314.7		83.4
Net income per common share, basic	$	0.22	$	0.22	$	0.12	$	0.12
Diluted net income per share:
Numerator
Net income attributable to common stockholders	$	61.9	$	17.8	$	37.7	$	9.9
Reallocation of net income as a result of conversion of Class B to Class A common stock	17.8		—		9.9		—
Reallocation of net income to Class B common stock	—		(0.1)		—		(0.2)
Net income attributable to common stockholders for diluted EPS	$	79.7	$	17.7	$	47.6	$	9.7
Denominator
Weighted-average number of common shares outstanding used in computing basic net income per share	288.0		82.7		314.7		83.4
Weighted-average effect of dilutive restricted stock units and awards and employee stock options	2.2		0.1		7.3		0.1
Conversion of Class B to Class A common stock	82.7		—		83.4		—
Weighted-average number of common shares outstanding used in computing diluted net income per share	372.9		82.8		405.4		83.5
Net income per common share, diluted	$	0.21	$	0.21	$	0.12	$	0.12

The weighted-average impact of potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive was as follows:


	Three Months Ended March 31,
	2022	2021
Restricted stock units and awards	13.3	2.1
Options to purchase shares of common stock	0.3	0.5
Co-Founder Grant	8.3	10.3
Convertible Senior Notes	37.8	14.0
Warrants	37.8	14.0
Total	97.5	40.9

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company computed the year-to-date income tax provision by applying the estimated annual effective tax rate to the year-to-date pre-tax income and adjusted for discrete tax items in the period. The Company's provision for income taxes was $14.1 million and a benefit from income taxes of $1.2 million for the three months ended March 31, 2022 and 2021, respectively. The provision for income taxes for the three months ended March 31, 2022 was primarily attributable to federal, state and foreign income taxes. In addition, a requirement of the Tax Cuts and Jobs Act of 2017 (TCJA) to capitalize certain research expenditures became effective January 1, 2022, which resulted in an increase in the federal and state income tax liability. For the three months ended March 31, 2022, the difference between the U.S. statutory rate and the Company's effective tax rate was primarily due to the requirement to capitalize research expenditures in accordance with TCJA, which was partially offset by the utilization of U.S. deferred tax assets which have a full valuation allowance. For the three months ended March 31, 2021, the difference between the U.S. statutory rate and the Company's effective tax rate was primarily due to the full valuation allowance on its U.S. and Irish deferred tax assets and a one-time benefit resulting for the acquisition of DocSend. For the periods presented, the effective tax rate was also impacted by earnings realized in foreign jurisdictions with statutory tax rates lower than the federal statutory tax rate. The Company periodically evaluates the realizability of its net deferred tax assets based on all available evidence, both positive and negative. The realization of net deferred tax assets is dependent on the Company's ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. As of March 31, 2022, the Company continues to maintain valuation allowances on all of its deferred tax assets in the U.S. and on a portion of its deferred tax assets in one of its foreign jurisdictions. Given the Company’s recent history of earnings, management believes that there is a reasonable possibility that, within the next twelve months, sufficient positive evidence may become available to allow management to reach a conclusion that a significant portion of all of the valuation allowance recorded against the U.S. deferred tax assets will be reversed. The reversal would result in an income tax benefit for the quarterly and annual fiscal period in which the Company releases the valuation allowance. However, the exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability that the Company actually achieves. The Company is subject to income tax audits in the U.S. and foreign jurisdictions. The Company records liabilities related to uncertain tax positions and believes that it has provided adequate reserves for income tax uncertainties in all open tax years. Unrecognized tax benefits increased by approximately $4.8 million for the three months ended March 31, 2022, of which $0.8 million, if recognized, would affect the Company's effective tax rate. Additionally, unrecognized tax benefits decreased by approximately $0.4 million for the three months ended March 31, 2022, due to a statute of limitations lapse related to prior period tax positions. It is reasonably possible that there could be changes to the amount of uncertain tax positions due to activities of the taxing authorities, settlement of audit issues, reassessment of existing uncertain tax positions, or the expiration of applicable statutes of limitations; however, the Company is not able to estimate the impact of these items at this time.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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+ Details

Geographic Areas

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Geographic Areas

Long-lived assets

The following table sets forth long-lived assets by geographic area:


	As of
	March 31, 2022		December 31, 2021
United States	$	307.0	$	316.6
International (1)	9.1		5.4
Total property and equipment, net	$	316.1	$	322.0

(1) No single country other than the United States had a property and equipment balance greater than 10% of total property and equipment, net, as of March 31, 2022 and December 31, 2021.

Revenue

Revenue by geography is generally based on the address of the customer as defined in the Company’s subscription agreement. The following table sets forth revenue by geographic area for the three months ended March 31, 2022 and 2021.


	Three Months Ended March 31,
	2022		2021
United States	$	299.2	$	266.9
International (1)	263.2		244.7
Total revenue	$	562.4	$	511.6

(1) No single country outside of the United States accounted for more than 10% of total revenue during the three months ended March 31, 2022 and 2021

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 280
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-Section 50
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 22
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Description of the Business and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of presentation

Basis of consolidation

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company’s condensed consolidated financial statements and accompanying notes. These estimates are based on information available as of the date of the condensed consolidated financial statements. Management evaluates these estimates and assumptions on a regular basis. Actual results may differ materially from these estimates.The Company’s most significant estimates and judgments involve the valuation of acquired intangible assets and goodwill from business combinations as well as the valuation of right-of-use and other lease related assets.

Financial information about segments and geographic areas

Foreign currency transactions

exchange rates.

Revenue recognition, cost of revenue, and deferred commissions, net

•Identification of the contract, or contracts, with a customer

•Identification of the performance obligations in the contract

•Determination of the transaction price

•Allocation of the transaction price to the performance obligations in the contract

•Recognition of revenue when, or as, the Company satisfies a performance obligation

Stock-based compensation

Cash and cash equivalents

The Company monitors its credit risk by considering factors such as historical experience, credit ratings, current economic conditions, and reasonable and supportable forecasts.

Short-term investments

Concentrations of credit risk

Property and equipment, net

The following table presents the estimated useful lives of property and equipment:


Property and equipment						Useful life

Buildings						20 to 30 years
Datacenter and other computer equipment						3 to 5 years
Office equipment and other						3 to 7 years
Leasehold improvements						Lesser of estimated useful life or remaining lease term

Lease obligations

Business combinations

Long-lived assets, including goodwill and other acquired intangible assets, net

The Company has not recorded impairment charges on goodwill or intangible assets for the periods presented in these condensed consolidated financial statements.

Income taxes

Fair value measurement

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 3—Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

Recently issued accounting pronouncements not yet adopted and accounting pronouncements

Recently issued accounting pronouncements not yet adopted

Recently adopted accounting pronouncements

Goodwill

Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquiredGoodwill amounts are not amortized, but tested for impairment on an annual basis.

Net loss per share

Description of the Business and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Estimated Useful Lives of Property and Equipment

The following table presents the estimated useful lives of property and equipment:


Property and equipment						Useful life

Buildings						20 to 30 years
Datacenter and other computer equipment						3 to 5 years
Office equipment and other						3 to 7 years
Leasehold improvements						Lesser of estimated useful life or remaining lease term

Property and equipment, net consisted of the following:


	As of
	March 31, 2022		December 31, 2021
Data center and other computer equipment	$	632.4	$	634.5
Furniture and fixtures	21.8		21.7
Leasehold improvements	109.0		106.7
Construction in progress	16.5		11.7
Total property and equipment	779.7		774.6
Accumulated depreciation and amortization	(463.6)		(452.6)
Property and equipment, net	$	316.1	$	322.0

Cash, Cash Equivalents and Short-Term Investments (Tables)

3 Months Ended

Mar. 31, 2022

Cash and Cash Equivalents [Abstract]

Schedule of Cash, Cash Equivalents and Short-Term Investments


	As of March 31, 2022
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash	$	85.8	$	—	$	—	$	85.8
Cash equivalents
Money market funds	349.7		—		—		$	349.7
Commercial paper	10.0		—		—		$	10.0
Total cash & cash equivalents	$	445.5	$	—	$	—	$	445.5
Short-term investments
Corporate notes and obligations	531.7		—		(15.6)		516.1
U.S. Treasury securities	264.6		—		(9.2)		255.4
Asset backed securities	138.7		—		(4.4)		134.3
Municipal securities	68.7		—		(2.8)		65.9
Commercial paper	24.4		—		—		24.4
Certificates of deposit	19.0		—		—		19.0
U.S. agency obligations	14.5		—		(0.5)		14.0
Foreign government obligations	13.5		—		(0.3)		13.2
Supranational securities	8.0		—		(0.2)		7.8
Total short-term investments	1,083.1		—		(33.0)		1,050.1
Total	$	1,528.6	—		$	(33.0)	$	1,495.6


	As of December 31, 2021
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash	$	142.7	$	—	$	—	$	142.7
Cash equivalents
Money market funds	390.3		—		—		390.3
Total cash & cash equivalents	$	533.0	$	—	$	—	$	533.0
Short-term investments
Corporate notes and obligations	607.4		0.4		(4.0)		603.8
U.S. Treasury securities	240.4		—		(2.9)		237.5
Asset backed securities	140.7		0.1		(1.2)		139.6
Municipal securities	70.5		—		(0.7)		69.8
Commercial paper	61.7		—		—		61.7
Certificates of deposit	32.1		—		—		32.1
Foreign government obligations	18.4		—		(0.1)		18.3
U.S. agency obligations	14.6		—		(0.2)		14.4
Supranational securities	8.0		—		(0.1)		7.9
Total short-term investments	1,193.8		0.5		(9.2)		1,185.1
Total	$	1,726.8	0.5		$	(9.2)	$	1,718.1

Contractual Maturities of Short Term Investments

The following table presents the contractual maturities of the Company’s short-term investments as of March 31, 2022:


	As of March 31, 2022
	Amortized cost		Estimated fair value
Due within one year	$	304.2	$	303.0
Due between one to three years	466.6		453.0
Due after three years	312.3		294.1
Total	$	1,083.1	$	1,050.1

Short-Term Investments in Continuous Unrealized Loss Position

The following tables present the breakdown of the short-term investments that have been in a continuous unrealized loss position aggregated by investment category, as of March 31, 2022 and December 31, 2021:


	As of March 31, 2022
	Less than 12 months				More than 12 months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Corporate notes and obligations	$	444.2	$	(13.5)	$	28.9	$	(2.1)	$	473.1	$	(15.6)
U.S. Treasury securities	173.7		(5.3)		62.1		(3.9)		235.8		(9.2)
Asset backed securities	117.9		(4.1)		9.5		(0.3)		127.4		(4.4)
Municipal securities	56.3		(2.3)		9.5		(0.5)		65.8		(2.8)
U.S. agency obligations	10.5		(0.3)		3.5		(0.2)		14.0		(0.5)
Foreign government obligations	11.3		(0.2)		1.9		(0.1)		13.2		(0.3)
Supranational securities	6.1		(0.1)		1.6		(0.1)		7.7		(0.2)
Total	$	820.0	$	(25.8)	$	117.0	$	(7.2)	$	937.0	$	(33.0)


	As of December 31, 2021
	Less than 12 months				More than 12 months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Corporate notes and obligations	$	498.6	$	(4.1)	$	—	$	—	$	498.6	$	(4.1)
U.S. Treasury securities	218.0		(2.9)		—		—		218.0		(2.9)
Asset backed securities	120.7		(1.2)		—		—		120.7		(1.2)
Municipal securities	66.0		(0.7)		—		—		66.0		(0.7)
U.S. agency obligations	14.4		(0.2)		—		—		14.4		(0.2)
Foreign government obligations	15.4		—		—		—		15.4		—
Supranational securities	7.9		(0.1)		—		—		7.9		(0.1)
Total	$	941.0	$	(9.2)	$	—	$	—	$	941.0	$	(9.2)

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets Measured On Recurring Basis

The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis using the input categories discussed in Note 1:


	As of March 31, 2022
	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	349.7	$	—	$	—	$	349.7
Commercial paper	—		10.0		—		10.0
Total cash equivalents	$	349.7	$	10.0	$	—	$	359.7
Short-term investments
Corporate notes and obligations	—		516.1		—		516.1
U.S. Treasury securities	—		255.4		—		255.4
Asset backed securities	—		134.3		—		134.3
Commercial paper	—		24.4		—		24.4
Municipal securities	—		65.9		—		65.9
Certificates of deposit	—		19.0		—		19.0
U.S. agency obligations	—		14.0		—		14.0
Foreign government obligations	—		13.2		—		13.2
Supranational securities	—		7.8		—		7.8
Total short-term investments	—		1,050.1		—		1,050.1
Total	$	349.7	$	1,060.1	$	—	$	1,409.8


	As of December 31, 2021
	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	390.3	$	—	$	—	$	390.3
Total cash equivalents	$	390.3	$	—	$	—	$	390.3
Short-term investments
Corporate notes and obligations	—		603.8		—		603.8
U.S. Treasury securities	—		237.5		—		237.5
Asset backed securities	—		139.6		—		139.6
Municipal securities	—		69.8		—		69.8
Commercial paper	—		61.7		—		61.7
Certificates of deposit	—		32.1		—		32.1
Foreign government obligations	—		18.3		—		18.3
U.S. agency obligations	—		14.4		—		14.4
Supranational securities	—		7.9		—		7.9
Total short-term investments	—		1,185.1		—		1,185.1
Total	$	390.3	$	1,185.1	$	—	$	1,575.4

Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment, Net

The following table presents the estimated useful lives of property and equipment:


Property and equipment						Useful life

Buildings						20 to 30 years
Datacenter and other computer equipment						3 to 5 years
Office equipment and other						3 to 7 years
Leasehold improvements						Lesser of estimated useful life or remaining lease term

Property and equipment, net consisted of the following:


	As of
	March 31, 2022		December 31, 2021
Data center and other computer equipment	$	632.4	$	634.5
Furniture and fixtures	21.8		21.7
Leasehold improvements	109.0		106.7
Construction in progress	16.5		11.7
Total property and equipment	779.7		774.6
Accumulated depreciation and amortization	(463.6)		(452.6)
Property and equipment, net	$	316.1	$	322.0

Business Combinations (Tables)

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Purchase Consideration Transferred

The purchase consideration transferred consisted of the following:


	Purchase consideration
Cash paid to common and preferred stockholders and vested option holders	$	125.5
Transaction costs paid by Dropbox on behalf of DocSend	5.0
Fair value of assumed DocSend options attributable to pre-combination services(1)	1.2
Purchase price adjustments	0.1
Total purchase consideration	$	131.8

(1) The fair value of options assumed was based upon the Black-Scholes option-pricing model.

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The purchase consideration was allocated to the tangible and intangible assets and liabilities acquired as of the acquisition date, with the excess recorded to goodwill as shown below.


Assets acquired:
Cash and cash equivalents	$	5.1
Acquisition-related intangible assets	20.6
Accounts receivable, prepaid and other assets	6.1
Total assets acquired	$	31.8

Liabilities assumed:
Accounts payable, accrued and other liabilities	$	6.4
Deferred revenue	1.9
Deferred tax liability	1.9
Total liabilities assumed	10.2
Net assets acquired, excluding goodwill	21.6
Total purchase consideration	131.8
Goodwill(2)	$	110.2

(2) The goodwill recognized was primarily attributable to the opportunity to expand the user base of the Company's platform. The goodwill is not deductible for U.S. federal income tax purposes.

Schedule of Identifiable Finite-lived Intangible Assets Acquired and Estimated Weighted Average Useful Lives

The fair value of the separately identifiable finite-lived intangible assets acquired and estimated weighted average useful lives are as follows:


	Estimated fair values		Estimated weighted average useful lives (In years)
Developed technology	$	11.5	5.0
Customer relationships	8.1		5.0
Trade name	1.0		5.0
Total acquisition-related intangible assets	$	20.6

Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets consisted of the following:


	As of March 31,		As of December 31,		Weighted- average remaining useful life (In years) As of March 31,
	2022		2021		2022
Developed technology	$	45.9	$	45.9	3.5
Customer relationships	28.6		28.6		3.4
Patents	19.5		19.5		5.1
Software	9.0		9.0		1.1
Trademarks and trade names	5.6		5.6		2.5
Licenses	4.6		4.6		—
Assembled workforce in asset acquisitions	3.0		3.0		—
Other	1.2		0.8		3.5
Total intangibles	117.4		117.0
Accumulated amortization	(67.4)		(63.4)
Intangible assets, net	$	50.0	$	53.6

Schedule of Future Amortization Expense

Expected future amortization expense for intangible assets as of March 31, 2022 is as follows:


2022	11.4
2023	14.9
2024	10.5
2025	8.0
2026	3.7
Thereafter	1.5
Total	$	50.0

Goodwill (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Carrying Amounts of Goodwill

The changes in the carrying amounts of goodwill were as follows:


Balance at December 31, 2021	$	356.6
Effect of foreign currency translation	(0.7)
Balance at March 31, 2022	$	355.9

Debt (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Convertible Debt

The following is a summary of the Company’s convertible senior notes as of March 31, 2022 and December 31, 2021.


	2026 Notes		2028 Notes		Total
March 31, 2022
Principal balance	$	695.8	$	693.3	$	1,389.1
Unamortized issuance costs	(8.6)		(9.3)		(17.9)
Carrying value, net	687.2		684.0		1,371.2

December 31, 2021
Principal balance	$	695.8	$	693.3	$	1,389.1
Unamortized issuance costs	(9.1)		(9.7)		(18.8)
Carrying value, net	686.7		683.6		1,370.3

Schedule of Maturities of Long-term Debt

Maturities on the Company's long-term convertible debt are as follows:


	Convertible Debt
April 1, 2022 through December 31, 2022	$	—
2023	—
2024	—
2025	—
2026	695.8
2027	—
Thereafter	693.3
Total	$	1,389.1

Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Maturities of Operating Lease Liabilities

Future minimum lease payments under non-cancellable leases as of March 31, 2022 were as follows:


Year ending December 31,	Operating leases(1)		Finance leases
2022 (excluding the three months ended March 31, 2022)	$	84.3	$	96.4
2023	96.6		98.5
2024	86.4		63.4
2025	81.0		25.4
2026	61.4		1.2
Thereafter	460.2		—
Total future minimum lease payments	869.9		284.9
Less imputed interest	(151.0)		(9.4)
Less tenant improvement receivables	(4.0)		—
Total liability	$	714.9	$	275.5

Maturities of Finance Lease Liabilities

Future minimum lease payments under non-cancellable leases as of March 31, 2022 were as follows:


Year ending December 31,	Operating leases(1)		Finance leases
2022 (excluding the three months ended March 31, 2022)	$	84.3	$	96.4
2023	96.6		98.5
2024	86.4		63.4
2025	81.0		25.4
2026	61.4		1.2
Thereafter	460.2		—
Total future minimum lease payments	869.9		284.9
Less imputed interest	(151.0)		(9.4)
Less tenant improvement receivables	(4.0)		—
Total liability	$	714.9	$	275.5

Payment to be Received on Operating Leases to Subtenants

Future non-cancelable rent payments from the Company's subtenants as of March 31, 2022 were as follows:


Year ending December 31,	Operating leases
2022 (excluding the three months ended March 31, 2022)	$	17.8
2023	14.6
2024	13.6
2025	12.6
2026	8.9
Thereafter	13.3
Total future sublease rent payments	80.8
Less sub-tenant incentive	(1.1)
Total future sublease rent payments, net	$	79.7

Accrued and Other Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Payables and Accruals [Abstract]

Schedule of Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following:


	As of
	March 31, 2022		December 31, 2021
Non-income taxes payable	$	85.5	$	77.4
Accrued legal and other external fees	25.4		24.0
Other accrued and current liabilities	44.3		39.4
Total accrued and other current liabilities	$	155.2	$	140.8

Stockholders’ Deficit (Tables)

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Schedule of Stock Option and Restricted Stock Activity

Stock option and restricted stock activity for the Plans was as follows for the three months ended March 31, 2022:


		Options outstanding						Restricted stock outstanding
	Number of shares available for issuance under the Plans	Number of shares outstanding under the Plans	Weighted- average exercise price per share		Weighted- average remaining contractual term (In years)	Aggregate intrinsic value		Number of Plan shares outstanding	Weighted- average grant date fair value per share
Balance at December 31, 2021	95.2	0.9	$	12.09	5.4	$	10.0	27.8	$	24.17
Additional shares authorized	18.8	—	—		—	—		—	—

Options exercised and restricted stock units and awards released	—	(0.1)	2.05		—	—		(3.9)	24.65
Options and restricted stock units and awards canceled	2.0	—	4.86		—	—		(1.9)	22.29
Shares withheld related to net share settlement of restricted stock units and awards	1.5	—	—		—	—		—	24.85
Options and restricted stock units and awards granted	(4.7)	—	—		—	—		4.7	24.04
Balance as of March 31, 2022	112.8	0.8	$	13.38	5.0	$	7.1	26.7	$	24.22
Vested at March 31, 2022		0.5	$	17.53	4.0	$	3.2	—	$	—
Unvested at March 31, 2022		0.3	$	3.20		$	3.9	26.7	$	24.22

Schedule of Pre-Tax Intrinsic Value of Options Exercised

The following table summarizes information about the pre-tax intrinsic value of options exercised during the three months ended March 31, 2022 and 2021:


	Three Months Ended March 31,
	2022		2021
Intrinsic value of options exercised	$	1.4	$	4.7

Fair Value of Stock Options Assumptions Used

The fair value of stock options assumed were estimated using the following assumptions:


Expected volatility	47	%
Expected term (in years)	2.0 - 6.8
Risk-free interest rate	0.15% - 1.29%
Dividend yield	—	%

Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in millions, except for per share amounts):


	Three Months Ended March 31,				Three Months Ended March 31,
	2022				2021
	Class A		Class B		Class A		Class B
Basic net income per share:
Numerator
Net income attributable to common stockholders	$	61.9	$	17.8	$	37.7	$	9.9
Denominator
Weighted-average number of common shares outstanding used in computing basic net income per share	288.0		82.7		314.7		83.4
Net income per common share, basic	$	0.22	$	0.22	$	0.12	$	0.12
Diluted net income per share:
Numerator
Net income attributable to common stockholders	$	61.9	$	17.8	$	37.7	$	9.9
Reallocation of net income as a result of conversion of Class B to Class A common stock	17.8		—		9.9		—
Reallocation of net income to Class B common stock	—		(0.1)		—		(0.2)
Net income attributable to common stockholders for diluted EPS	$	79.7	$	17.7	$	47.6	$	9.7
Denominator
Weighted-average number of common shares outstanding used in computing basic net income per share	288.0		82.7		314.7		83.4
Weighted-average effect of dilutive restricted stock units and awards and employee stock options	2.2		0.1		7.3		0.1
Conversion of Class B to Class A common stock	82.7		—		83.4		—
Weighted-average number of common shares outstanding used in computing diluted net income per share	372.9		82.8		405.4		83.5
Net income per common share, diluted	$	0.21	$	0.21	$	0.12	$	0.12

Schedule of Potentially Dilutive Securities Excluded from Computation of Earnings Per Share

The weighted-average impact of potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive was as follows:


	Three Months Ended March 31,
	2022	2021
Restricted stock units and awards	13.3	2.1
Options to purchase shares of common stock	0.3	0.5
Co-Founder Grant	8.3	10.3
Convertible Senior Notes	37.8	14.0
Warrants	37.8	14.0
Total	97.5	40.9

Geographic Areas (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Long-lived Assets by Geographic Areas

The following table sets forth long-lived assets by geographic area:


	As of
	March 31, 2022		December 31, 2021
United States	$	307.0	$	316.6
International (1)	9.1		5.4
Total property and equipment, net	$	316.1	$	322.0

(1) No single country other than the United States had a property and equipment balance greater than 10% of total property and equipment, net, as of March 31, 2022 and December 31, 2021.

Revenue by Geographic Areas

The following table sets forth revenue by geographic area for the three months ended March 31, 2022 and 2021.


	Three Months Ended March 31,
	2022		2021
United States	$	299.2	$	266.9
International (1)	263.2		244.7
Total revenue	$	562.4	$	511.6

(1) No single country outside of the United States accounted for more than 10% of total revenue during the three months ended March 31, 2022 and 2021

Description of the Business and Summary of Significant Accounting Policies - Foreign Currency Transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net foreign currency transaction gains (losses)	$ 2.8	$ 0.2

Description of the Business and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Revenue, performance obligation, description of timing	one year or longer
Revenue recognized	$ 313.7	$ 283.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 753.6
Performance obligation satisfaction period	12 months

Description of the Business and Summary of Significant Accounting Policies - Stock-based Compensation (Details) - Restricted Stock - shares shares in Millions	1 Months Ended	3 Months Ended
	Dec. 31, 2017	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years
Shares granted (in shares)		4.7
Chief Executive Officer \| Co-Founder Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)	10.3

Description of the Business and Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Trade and Other Receivables - Customer Concentration Risk	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Customer A
Concentration Risk [Line Items]
Concentration risk, percentage	14.00%	14.00%
Customer B
Concentration Risk [Line Items]
Concentration risk, percentage	34.00%	29.00%

Description of the Business and Summary of Significant Accounting Policies - Deferred Commissions, Net (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Capitalized Contract Cost [Line Items]
Additional contract costs deferred	$ 7.6	$ 4.9
Amortization of deferred commissions	$ 9.0	$ 7.7
Deferred Commissions
Capitalized Contract Cost [Line Items]
Deferred contract costs, amortization period	5 years
Deferred Commissions \| Prepaid Expenses and Other Current Assets
Capitalized Contract Cost [Line Items]
Deferred contract costs	$ 32.0		$ 30.8
Deferred Commissions \| Other Assets
Capitalized Contract Cost [Line Items]
Deferred contract costs	$ 32.0		$ 34.6
Renewal Commissions
Capitalized Contract Cost [Line Items]
Deferred contract costs, amortization period	1 year

Description of the Business and Summary of Significant Accounting Policies - Property and Equipment, Net (Details)	3 Months Ended
	Mar. 31, 2022
Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Minimum \| Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	20 years
Minimum \| Datacenter and other computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Minimum \| Office equipment and other
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	7 years
Maximum \| Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	30 years
Maximum \| Datacenter and other computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Maximum \| Office equipment and other
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	7 years

Description of the Business and Summary of Significant Accounting Policies - Lease Obligations (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Lessee, Lease, Description [Line Items]
Impairment related to real estate assets	$ 0.0	$ 17.3
Corporate Headquarters Lease
Lessee, Lease, Description [Line Items]
Impairment related to real estate assets		$ 17.3

Cash, Cash Equivalents and Short-Term Investments - Schedule of Components (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents, at carrying value	$ 445.5	$ 533.0
Cash equivalents	445.5	533.0
Short-term investments, amortized cost	1,083.1	1,193.8
Short-term investments, unrealized gain	0.0	0.5
Short-term investments, unrealized loss	(33.0)	(9.2)
Short-term investments, estimated fair value	1,050.1	1,185.1
Total cash, cash equivalents, and short term investments, before unrealized gains (losses) on investments	1,528.6	1,726.8
Total cash, cash equivalents, and short term investments	1,495.6	1,718.1
Corporate notes and obligations
Cash and Cash Equivalents [Line Items]
Short-term investments, amortized cost	531.7	607.4
Short-term investments, unrealized gain	0.0	0.4
Short-term investments, unrealized loss	(15.6)	(4.0)
Short-term investments, estimated fair value	516.1	603.8
U.S. Treasury securities
Cash and Cash Equivalents [Line Items]
Short-term investments, amortized cost	264.6	240.4
Short-term investments, unrealized gain	0.0	0.0
Short-term investments, unrealized loss	(9.2)	(2.9)
Short-term investments, estimated fair value	255.4	237.5
Asset backed securities
Cash and Cash Equivalents [Line Items]
Short-term investments, amortized cost	138.7	140.7
Short-term investments, unrealized gain	0.0	0.1
Short-term investments, unrealized loss	(4.4)	(1.2)
Short-term investments, estimated fair value	134.3	139.6
Municipal securities
Cash and Cash Equivalents [Line Items]
Short-term investments, amortized cost	68.7	70.5
Short-term investments, unrealized gain	0.0	0.0
Short-term investments, unrealized loss	(2.8)	(0.7)
Short-term investments, estimated fair value	65.9	69.8
Commercial paper
Cash and Cash Equivalents [Line Items]
Short-term investments, amortized cost	24.4	61.7
Short-term investments, unrealized gain	0.0	0.0
Short-term investments, unrealized loss	0.0	0.0
Short-term investments, estimated fair value	24.4	61.7
Certificates of deposit
Cash and Cash Equivalents [Line Items]
Short-term investments, amortized cost	19.0	32.1
Short-term investments, unrealized gain	0.0	0.0
Short-term investments, unrealized loss	0.0	0.0
Short-term investments, estimated fair value	19.0	32.1
U.S. agency obligations
Cash and Cash Equivalents [Line Items]
Short-term investments, amortized cost	14.5	14.6
Short-term investments, unrealized gain	0.0	0.0
Short-term investments, unrealized loss	(0.5)	(0.2)
Short-term investments, estimated fair value	14.0	14.4
Foreign government obligations
Cash and Cash Equivalents [Line Items]
Short-term investments, amortized cost	13.5	18.4
Short-term investments, unrealized gain	0.0	0.0
Short-term investments, unrealized loss	(0.3)	(0.1)
Short-term investments, estimated fair value	13.2	18.3
Supranational securities
Cash and Cash Equivalents [Line Items]
Short-term investments, amortized cost	8.0	8.0
Short-term investments, unrealized gain	0.0	0.0
Short-term investments, unrealized loss	(0.2)	(0.1)
Short-term investments, estimated fair value	7.8	7.9
Cash
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents, at carrying value	85.8	142.7
Cash equivalents	85.8	142.7
Money market funds
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents, at carrying value	349.7	390.3
Cash equivalents	349.7	$ 390.3
Commercial paper
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents, at carrying value	10.0
Cash equivalents	$ 10.0

Cash, Cash Equivalents and Short-Term Investments - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) investment investmentType	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)
Cash and Cash Equivalents [Abstract]
Cash in transit for credit and debit card transactions	$ 8.6		$ 8.3
Number of investments in unrealized loss positions \| investment	706
Number of security types \| investmentType	9
Number of security types in loss position \| investmentType	7
Unrealized losses, short term investments	$ 33.0		$ 9.2
Investment income	$ 1.8	$ 1.9

Cash, Cash Equivalents and Short-Term Investments - Contractual Maturities (Details) $ in Millions	Mar. 31, 2022 USD ($)
Amortized cost
Due within one year	$ 304.2
Due between one to three years	466.6
Due after three years	312.3
Total	1,083.1
Estimated fair value
Due within one year	303.0
Due between one to three years	453.0
Due after three years	294.1
Total	$ 1,050.1

Cash, Cash Equivalents and Short-Term Investments - Unrealized Loss Position Aggregated By Investment (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Less than 12 months
Fair Value	$ 820.0	$ 941.0
Gross Unrealized Losses	(25.8)	(9.2)
More than 12 months
Fair Value	117.0	0.0
Gross Unrealized Losses	(7.2)	0.0
Total
Fair Value	937.0	941.0
Gross Unrealized Losses	(33.0)	(9.2)
Corporate notes and obligations
Less than 12 months
Fair Value	444.2	498.6
Gross Unrealized Losses	(13.5)	(4.1)
More than 12 months
Fair Value	28.9	0.0
Gross Unrealized Losses	(2.1)	0.0
Total
Fair Value	473.1	498.6
Gross Unrealized Losses	(15.6)	(4.1)
U.S. Treasury securities
Less than 12 months
Fair Value	173.7	218.0
Gross Unrealized Losses	(5.3)	(2.9)
More than 12 months
Fair Value	62.1	0.0
Gross Unrealized Losses	(3.9)	0.0
Total
Fair Value	235.8	218.0
Gross Unrealized Losses	(9.2)	(2.9)
Asset backed securities
Less than 12 months
Fair Value	117.9	120.7
Gross Unrealized Losses	(4.1)	(1.2)
More than 12 months
Fair Value	9.5	0.0
Gross Unrealized Losses	(0.3)	0.0
Total
Fair Value	127.4	120.7
Gross Unrealized Losses	(4.4)	(1.2)
Municipal securities
Less than 12 months
Fair Value	56.3	66.0
Gross Unrealized Losses	(2.3)	(0.7)
More than 12 months
Fair Value	9.5	0.0
Gross Unrealized Losses	(0.5)	0.0
Total
Fair Value	65.8	66.0
Gross Unrealized Losses	(2.8)	(0.7)
U.S. agency obligations
Less than 12 months
Fair Value	10.5	14.4
Gross Unrealized Losses	(0.3)	(0.2)
More than 12 months
Fair Value	3.5	0.0
Gross Unrealized Losses	(0.2)	0.0
Total
Fair Value	14.0	14.4
Gross Unrealized Losses	(0.5)	(0.2)
Foreign government obligations
Less than 12 months
Fair Value	11.3	15.4
Gross Unrealized Losses	(0.2)	0.0
More than 12 months
Fair Value	1.9	0.0
Gross Unrealized Losses	(0.1)	0.0
Total
Fair Value	13.2	15.4
Gross Unrealized Losses	(0.3)	0.0
Supranational securities
Less than 12 months
Fair Value	6.1	7.9
Gross Unrealized Losses	(0.1)	(0.1)
More than 12 months
Fair Value	1.6	0.0
Gross Unrealized Losses	(0.1)	0.0
Total
Fair Value	7.7	7.9
Gross Unrealized Losses	$ (0.2)	$ (0.1)

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities, FV-NI	$ 5.6	$ 5.6
2026 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible debt, fair value disclosures	659.5
2026 Notes \| Convertible Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, face amount	$ 695.8
Debt instrument, interest rate, stated percentage	0.00%
2028 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible debt, fair value disclosures	$ 656.9
2028 Notes \| Convertible Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, face amount	$ 693.3
Debt instrument, interest rate, stated percentage	0.00%

Property and Equipment, Net - Schedule of Components (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 779.7	$ 774.6
Accumulated depreciation and amortization	(463.6)	(452.6)
Property and equipment, net	316.1	322.0
Data center and other computer equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	632.4	634.5
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	21.8	21.7
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	109.0	106.7
Construction in progress
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 16.5	$ 11.7

Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Assets under equipment finance lease, gross	$ 451.7		$ 469.4
Assets under equipment finance lease, accumulated depreciation	230.7		$ 237.6
Depreciation	35.4	$ 31.5
Data center and other computer equipment
Property, Plant and Equipment [Line Items]
Fully depreciated assets, retired	$ 24.5

Business Combinations - Schedule of Purchase Consideration (Details) - DocSend Inc. $ in Millions	Mar. 22, 2021 USD ($)
Business Acquisition [Line Items]
Cash paid to common and preferred stockholders and vested option holders	$ 125.5
Transaction costs paid by Dropbox	5.0
Fair value of assumed HelloSign options attributable to pre-combination services	1.2
Purchase price adjustments	0.1
Total purchase consideration	$ 131.8

Business Combinations - Narrative (Details) - USD ($) $ in Millions		3 Months Ended
	Mar. 22, 2021	Mar. 31, 2022	Mar. 31, 2021
Business Acquisition [Line Items]
Purchase consideration, agreements with key personnel		$ 20.5
DocSend Inc.
Business Acquisition [Line Items]
Purchase consideration, agreements with key personnel	$ 30.7
Required service period	3 years
Personnel agreement, expense recognized		$ 10.2
Business combination, remaining service period		2 years
Acquired finite-lived intangible assets weighted average amortization period	5 years
Acquisition-related diligence costs			$ 1.2

Business Combinations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Mar. 22, 2021
Liabilities assumed:
Goodwill	$ 355.9	$ 356.6
DocSend Inc.
Assets acquired:
Cash and cash equivalents			$ 5.1
Acquisition-related intangible assets			20.6
Accounts receivable, prepaid and other assets			6.1
Total assets acquired			31.8
Liabilities assumed:
Accounts payable, accrued and other liabilities			6.4
Deferred revenue			1.9
Deferred tax liability			1.9
Total liabilities assumed			10.2
Net assets acquired, excluding goodwill			21.6
Total purchase consideration			131.8
Goodwill			$ 110.2

Business Combinations - Schedule of Assets Acquired (Details) - DocSend Inc. $ in Millions	Mar. 22, 2021 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated fair values	$ 20.6
Estimated weighted average useful lives (In years)	5 years
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated fair values	$ 11.5
Estimated weighted average useful lives (In years)	5 years
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated fair values	$ 8.1
Estimated weighted average useful lives (In years)	5 years
Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated fair values	$ 1.0
Estimated weighted average useful lives (In years)	5 years

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 117.4	$ 117.0
Accumulated amortization	(67.4)	(63.4)
Intangible assets, net	50.0	53.6
Developed technology
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 45.9	45.9
Developed technology \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- average remaining useful life (in years)	3 years 6 months
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 28.6	28.6
Customer relationships \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- average remaining useful life (in years)	3 years 4 months 24 days
Patents
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 19.5	19.5
Patents \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- average remaining useful life (in years)	5 years 1 month 6 days
Software
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 9.0	9.0
Software \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- average remaining useful life (in years)	1 year 1 month 6 days
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 5.6	5.6
Trademarks and trade names \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- average remaining useful life (in years)	2 years 6 months
Licenses
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 4.6	4.6
Assembled workforce in asset acquisitions
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	3.0	3.0
Other
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 1.2	$ 0.8
Other \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- average remaining useful life (in years)	3 years 6 months

Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 4.0	$ 3.1
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
2022	11.4
2023	14.9
2024	10.5
2025	8.0
2026	3.7
Thereafter	1.5
Total	$ 50.0

Goodwill (Details) - USD ($)	3 Months Ended	12 Months Ended
Goodwill (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 356,600,000
Effect of foreign currency translation	(700,000)
Goodwill, ending balance	355,900,000	$ 356,600,000
Goodwill impairment	$ 0	$ 0

Debt - Revolving Credit Facility (Details) - Credit And Guarantee Agreement - USD ($)	1 Months Ended
	Feb. 28, 2021	Feb. 28, 2018	Mar. 31, 2022	Apr. 30, 2017
Revolving Credit Facility
Line of Credit Facility [Line Items]
Unused capacity, commitment fee (percent)		0.20%
Letter of Credit
Line of Credit Facility [Line Items]
Commitment fee (percent)		1.375%
Fronting fee (percent)		0.125%
Line of Credit
Line of Credit Facility [Line Items]
Covenant terms, minimum liquidity balance		$ 100,000,000
Line of Credit \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 500,000,000	$ 725,000,000		$ 600,000,000
Line of credit facility, accordion feature, increase limit	250,000,000
Debt issuance fees	1,700,000
Write off of deferred debt issuance cost	$ 200,000
Aggregate letters of credit outstanding amount			$ 52,100,000
Remaining borrowing capacity			$ 447,900,000
Line of Credit \| Revolving Credit Facility \| LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)		1.375%
Line of Credit \| Revolving Credit Facility \| Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)		0.375%
Line of Credit \| Letter of Credit
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		$ 187,500,000

Debt - Convertible Senior Notes (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) day $ / shares	Mar. 31, 2021 USD ($)
Debt Instrument [Line Items]
Proceeds from issuance of convertible senior notes	$ 0.0	$ 1,389.1
Convertible Scenario One
Debt Instrument [Line Items]
Convertible debt, threshold trading days \| day	20
Convertible debt, threshold consecutive trading days \| day	30
Convertible debt, threshold percentage of stock price trigger	130.00%
Convertible Scenario Two
Debt Instrument [Line Items]
Convertible debt, threshold trading days \| day	5
Convertible debt, threshold consecutive trading days \| day	5
Convertible debt, threshold percentage of stock price trigger	98.00%
Redemption Scenario
Debt Instrument [Line Items]
Convertible debt, threshold trading days \| day	20
Convertible debt, threshold consecutive trading days \| day	30
Convertible debt, threshold percentage of stock price trigger	130.00%
Convertible Debt \| Redemption Scenario
Debt Instrument [Line Items]
Convertible debt, redemption percentage	100.00%
Convertible Debt \| Fundamental Change
Debt Instrument [Line Items]
Convertible debt, redemption percentage	100.00%
2026 Notes
Debt Instrument [Line Items]
Convertible debt, conversion rate	0.0261458
Convertible debt, conversion rate (in dollars per share) \| $ / shares	$ 38.25
Interest expense	$ 0.5	0.2
2026 Notes \| Maximum
Debt Instrument [Line Items]
Convertible debt, conversion rate	0.0431406
2026 Notes \| Convertible Debt
Debt Instrument [Line Items]
Proceeds from issuance of convertible senior notes		695.8
Debt issuance costs	$ 11.0
Debt instrument, term	5 years
Effective interest rate	0.32%
2028 Notes
Debt Instrument [Line Items]
Convertible debt, conversion rate	0.0282889
Convertible debt, conversion rate (in dollars per share) \| $ / shares	$ 35.35
Interest expense	$ 0.4	0.2
2028 Notes \| Maximum
Debt Instrument [Line Items]
Convertible debt, conversion rate	0.0431406
2028 Notes \| Convertible Debt
Debt Instrument [Line Items]
Proceeds from issuance of convertible senior notes		$ 693.3
Debt issuance costs	$ 11.0
Debt instrument, term	7 years
Effective interest rate	0.22%

Debt - Schedule of Convertible Notes (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Principal balance	$ 1,389.1
Convertible Debt
Debt Instrument [Line Items]
Principal balance	1,389.1	$ 1,389.1
Unamortized issuance costs	(17.9)	(18.8)
Carrying value, net	1,371.2	1,370.3
Convertible Debt \| 2026 Notes
Debt Instrument [Line Items]
Principal balance	695.8	695.8
Unamortized issuance costs	(8.6)	(9.1)
Carrying value, net	687.2	686.7
Convertible Debt \| 2028 Notes
Debt Instrument [Line Items]
Principal balance	693.3	693.3
Unamortized issuance costs	(9.3)	(9.7)
Carrying value, net	$ 684.0	$ 683.6

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Debt - Long Term Debt Maturities (Details) $ in Millions	Mar. 31, 2022 USD ($)
Debt Disclosure [Abstract]
April 1, 2022 through December 31, 2022	$ 0.0
2023	0.0
2024	0.0
2025	0.0
2026	695.8
2027	0.0
Thereafter	693.3
Total	$ 1,389.1

Debt - Convertible Note Hedges and Warrants (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Derivative [Line Items]
Proceeds from sale of warrants in connection with issuance of convertible senior notes	$ 0.0	$ 202.9	$ 202.9
2026 Notes
Derivative [Line Items]
Convertible debt, conversion rate (in dollars per share)	$ 38.25
Convertible debt, effective conversion rate (in dollars per share)	46.36
2028 Notes
Derivative [Line Items]
Convertible debt, conversion rate (in dollars per share)	35.35
Convertible debt, effective conversion rate (in dollars per share)	$ 46.36
2026 Warrants
Derivative [Line Items]
Number of shares covered by warrant (in shares)			18.1
Warrant price (in dollars per share)			$ 46.36
2028 Warrants
Derivative [Line Items]
Number of shares covered by warrant (in shares)			20.1
Warrant price (in dollars per share)			$ 46.36
2026 Notes Hedge
Derivative [Line Items]
Convertible note hedge, number of shares covered by hedge (in shares)	18.2
Convertible note hedge, strike price (in dollars per share)	$ 38.25
2028 Notes Hedge
Derivative [Line Items]
Convertible note hedge, number of shares covered by hedge (in shares)	19.6
Convertible note hedge, strike price (in dollars per share)	$ 35.35
Convertible Note Hedge
Derivative [Line Items]
Cost of note hedge transaction	$ 265.3

Leases - Narrative (Details) - USD ($)	3 Months Ended
Leases - Narrative (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2017
Lessee, Lease, Description [Line Items]
Lease, renewal term	5 years
Sublease income	$ 4,500,000	$ 3,900,000
Right-of-use asset impairments	0	$ 17,300,000
Operating leases, not yet commenced, value	$ 32,800,000
Minimum
Lessee, Lease, Description [Line Items]
Lease, remaining lease term	1 year
Operating sublease, term	1 year
Operating leases, not yet commenced, term of contract	10 years
Maximum
Lessee, Lease, Description [Line Items]
Lease, remaining lease term	14 years
Operating sublease, term	9 years
Operating leases, not yet commenced, term of contract	11 years
Corporate Headquarters Lease
Lessee, Lease, Description [Line Items]
Operating lease, term of contract			15 years
Minimum obligations	$ 590,700,000
Line of Credit \| Letter of Credit \| Corporate Headquarters Lease
Lessee, Lease, Description [Line Items]
Letter of credit	$ 34,200,000

Leases - Future Minimum Lease Payments (Details) $ in Millions	Mar. 31, 2022 USD ($)
Operating leases
2022 (excluding the three months ended March 31, 2022)	$ 84.3
2023	96.6
2024	86.4
2025	81.0
2026	61.4
Thereafter	460.2
Total future minimum lease payments	869.9
Less imputed interest	(151.0)
Less tenant improvement receivables	(4.0)
Total liability	714.9
Finance leases
2022 (excluding the three months ended March 31, 2022)	96.4
2023	98.5
2024	63.4
2025	25.4
2026	1.2
Thereafter	0.0
Total future minimum lease payments	284.9
Less imputed interest	(9.4)
Less tenant improvement receivables	0.0
Total liability	$ 275.5

Leases - Future Subtenant Payments Receivable (Details) $ in Millions	Mar. 31, 2022 USD ($)
Leases [Abstract]
2022 (excluding the three months ended March 31, 2022)	$ 17.8
2023	14.6
2024	13.6
2025	12.6
2026	8.9
Thereafter	13.3
Total future sublease rent payments	80.8
Less sub-tenant incentive	(1.1)
Total future sublease rent payments, net	$ 79.7

Commitments and Contingencies (Details)	Mar. 31, 2022 lawsuit
Class Action Lawsuits Filed in the State of California, San Mateo County
Loss Contingencies [Line Items]
Number of pending claims	4

Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Non-income taxes payable	$ 85.5	$ 77.4
Accrued legal and other external fees	25.4	24.0
Other accrued and current liabilities	44.3	39.4
Total accrued and other current liabilities	$ 155.2	$ 140.8

Stockholders’ Deficit - Common Stock, Convertible Preferred Stock, Preferred Stock Narrative (Details)	1 Months Ended	3 Months Ended		12 Months Ended
	Dec. 31, 2017 shares	Mar. 31, 2022 vote $ / shares shares	Mar. 31, 2021 shares	Dec. 31, 2021 shares
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)		240,000,000.0
Restricted Stock
Class of Stock [Line Items]
Shares granted (in shares)		4,700,000
Co-Founder Grant \| Restricted Stock \| Chief Executive Officer
Class of Stock [Line Items]
Shares granted (in shares)	10,300,000
Class A common stock
Class of Stock [Line Items]
Votes per share \| vote		1
Common stock, shares authorized (in shares)		2,400,000,000
Common stock, par value (in dollars per share) \| $ / shares		$ 0.00001
Common stock, shares issued (in shares)		284,400,000		292,700,000
Common stock, shares outstanding (in shares)		284,400,000		292,700,000
Class A common stock \| Co-Founder Grant \| Restricted Stock \| Chief Executive Officer
Class of Stock [Line Items]
Shares granted (in shares)		8,200,000		8,200,000
Class B common stock
Class of Stock [Line Items]
Votes per share \| vote		10
Common stock, shares authorized (in shares)		475,000,000.0
Common stock, par value (in dollars per share) \| $ / shares		$ 0.00001
Shares converted in conversion (in shares)		200,000	300,000
Common stock, shares issued (in shares)		82,600,000		82,800,000
Common stock, shares outstanding (in shares)		82,600,000		82,800,000
Class C common stock
Class of Stock [Line Items]
Votes per share \| vote		0
Common stock, shares authorized (in shares)		800,000,000.0
Common stock, par value (in dollars per share) \| $ / shares		$ 0.00001
Common stock, shares issued (in shares)		0		0
Common stock, shares outstanding (in shares)		0		0

Stockholders’ Deficit - Stock Repurchase Program (Details) - USD ($) shares in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Feb. 28, 2022	Feb. 28, 2021	Feb. 29, 2020
Class of Stock [Line Items]
Stock repurchase program, authorized amount			$ 1,200,000,000	$ 1,000,000,000	$ 600,000,000
Stock repurchased and retired during period (in shares)	11.0	18.6
Stock repurchased and retired during period, aggregate purchase price	$ 259,900,000	$ 431,900,000
Convertible Debt
Class of Stock [Line Items]
Stock repurchased and retired during period (in shares)		8.6
Stock repurchased and retired during period, aggregate purchase price		$ 200,000,000

Stockholders’ Deficit - Equity Incentive Plans Narrative (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued and outstanding (in shares)	0.8	0.9
2018 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
Remaining unamortized stock-based compensation	$ 603.6
Award requisite period	2 years 8 months 12 days
2018 Plan \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
Vesting period	4 years
Equity Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued and outstanding (in shares)	27.5
Shares available for grant (in shares)	112.8

Stockholders’ Deficit - Schedule of Stock Option and Restricted Stock Activity (Details) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares
Number of shares available for issuance under the Plans
Beginning balance (in shares)	95.2
Additional shares authorized (in shares)	18.8
Options and restricted stock units and awards canceled (in shares)	2.0
Shares withheld related to net share settlement of restricted stock units and awards (in shares)	1.5
Options and restricted stock units and awards granted (in shares)	(4.7)
Ending balance (in shares)	112.8	95.2
Options Outstanding, Number of shares outstanding under the Plans
Beginning balance (in shares)	0.9
Options exercised and restricted stock units and awards released (in shares)	(0.1)
Options and restricted stock units and awards canceled (in shares)	0.0
Ending balance (in shares)	0.8	0.9
Vested at end of period (in shares)	0.5
Unvested at end of period (in shares)	0.3
Options Outstanding, Weighted- average exercise price per share
Beginning balance (in dollars per share) \| $ / shares	$ 12.09
Options exercised and restricted stock units and awards released (in dollars per share) \| $ / shares	2.05
Options and restricted stock units and awards canceled (in dollars per share) \| $ / shares	4.86
Ending balance (in dollars per share) \| $ / shares	13.38	$ 12.09
Vested at end of period (in dollars per share) \| $ / shares	17.53
Unvested at end of period (in dollars per shares) \| $ / shares	$ 3.20
Options Outstanding, Weighted- average remaining contractual term (In years)
Weighted-average contractual term	5 years	5 years 4 months 24 days
Vested at end of period	4 years
Options outstanding, aggregate intrinsic value \| $	$ 7,100	$ 10,000
Vested at end of period, aggregate intrinsic value \| $	3,200
Unvested at end of period, aggregate intrinsic value \| $	$ 3,900
Restricted Stock
Restricted Stock Outstanding, Number of Plan shares outstanding
Beginning balance (in shares)	27.8
Options exercised and restricted stock units and awards released (in shares)	(3.9)
Options and restricted stock units and awards canceled (in shares)	(1.9)
Options and restricted stock units and awards granted (in shares)	4.7
Ending balance (in shares)	26.7	27.8
Vested at end of period (in shares)	0.0
Restricted Stock Outstanding, Weighted- average grant date fair value per share
Beginning balance (in dollars per share) \| $ / shares	$ 24.17
Options exercised and restricted stock units and awards released (in dollars per share) \| $ / shares	24.65
Options and restricted stock units and awards canceled (in dollars per share) \| $ / shares	22.29
Shares withheld related to net share settlement of restricted stock units and awards (in dollars per share) \| $ / shares	24.85
Options and restricted stock units and awards granted (in dollars per share) \| $ / shares	24.04
Ending balance (in dollars per share) \| $ / shares	24.22	$ 24.17
Vested at end of period (in dollars per share) \| $ / shares	$ 0

Stockholders’ Deficit - Schedule of Pre-Tax Intrinsic Value (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stockholders' Equity Note [Abstract]
Intrinsic value of options exercised	$ 1.4	$ 4.7

Stockholders’ Deficit - Assumed Stock Options Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended
	Mar. 22, 2021	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield		0.00%
DocSend Inc.
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options assumed (in shares)	0.4
Weighted average grant date fair value of stock options assumed (in dollars per share)		$ 25.28
Fair value of options assumed in business combination		$ 9.3
Post combination, stock-based compensation expense		$ 8.1

Stockholders’ Deficit - Fair Value of Stock Option Assumptions Used (Details)		3 Months Ended
	Mar. 22, 2021	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield		0.00%
Employee Stock Option \| DocSend Inc.
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	47.00%
Risk-free interest rate, minimum	0.15%
Risk-free interest rate, maximum	1.29%
Dividend yield	0.00%
Employee Stock Option \| Minimum \| DocSend Inc.
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	2 years
Employee Stock Option \| Maximum \| DocSend Inc.
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 9 months 18 days

Stockholders’ Deficit - Co-Founder Grants (Details) - Restricted Stock shares in Millions, $ in Millions	1 Months Ended	3 Months Ended
	Dec. 31, 2017 tranche shares	Mar. 31, 2022 USD ($) shares	Dec. 31, 2021 shares	Mar. 31, 2021 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)		4.7
Vesting period		4 years
Awards vesting (in shares)		0.0
Co-Founder Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
Number of tranches \| tranche	9
Allocated share-based compensation expense \| $		$ 3.6		$ 3.6
Remaining unamortized stock-based compensation \| $		$ 17.5
Co-Founder Grant \| Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Co-Founder Grant \| Tranche One \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage vested maximum	20.00%
Co-Founder Grant \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)	10.3
Awards vesting (in shares)			2.1

Net Income Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator
Net income attributable to common stockholders	$ 79.7	$ 47.6
Weighted-average number of common shares outstanding used in computing basic net income per share (in shares)	370.7	398.1
Net income per common share, basic (in dollars per share)	$ 0.22	$ 0.12
Weighted-average number of common shares outstanding used in computing diluted net income per share (in shares)	372.9	405.4
Net income per common share, diluted (in dollars per share)	$ 0.21	$ 0.12
Class A
Numerator
Net income attributable to common stockholders	$ 61.9	$ 37.7
Weighted-average number of common shares outstanding used in computing basic net income per share (in shares)	288.0	314.7
Net income per common share, basic (in dollars per share)	$ 0.22	$ 0.12
Reallocation of net income as a result of conversion of Class B to Class A common stock	$ 17.8	$ 9.9
Reallocation of net income to Class B common stock	0.0	0.0
Net income attributable to common stockholders for diluted EPS	$ 79.7	$ 47.6
Weighted-average effect of dilutive restricted stock units and awards and employee stock options (in shares)	2.2	7.3
Conversion of Class B to Class A common stock (in shares)	82.7	83.4
Weighted-average number of common shares outstanding used in computing diluted net income per share (in shares)	372.9	405.4
Net income per common share, diluted (in dollars per share)	$ 0.21	$ 0.12
Class B
Numerator
Net income attributable to common stockholders	$ 17.8	$ 9.9
Weighted-average number of common shares outstanding used in computing basic net income per share (in shares)	82.7	83.4
Net income per common share, basic (in dollars per share)	$ 0.22	$ 0.12
Reallocation of net income as a result of conversion of Class B to Class A common stock	$ 0.0	$ 0.0
Reallocation of net income to Class B common stock	(0.1)	(0.2)
Net income attributable to common stockholders for diluted EPS	$ 17.7	$ 9.7
Weighted-average effect of dilutive restricted stock units and awards and employee stock options (in shares)	0.1	0.1
Conversion of Class B to Class A common stock (in shares)	0.0	0.0
Weighted-average number of common shares outstanding used in computing diluted net income per share (in shares)	82.8	83.5
Net income per common share, diluted (in dollars per share)	$ 0.21	$ 0.12

Net Income Per Share - Schedule of Potentially Dilutive Securities Excluded from Computation (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	97.5	40.9
Restricted stock units and awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	13.3	2.1
Options to purchase shares of common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0.3	0.5
Co-Founder Grant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	8.3	10.3
Convertible Senior Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	37.8	14.0
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	37.8	14.0

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 14.1	$ (1.2)
Increase in unrecognized tax benefits	4.8
Unrecognized tax benefits that would impact effective tax rate	0.8
Decrease in unrecognized tax benefits for expiration of statute of limitations	$ 0.4

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Geographic Areas (Details) - USD ($) $ in Millions	3 Months Ended
Geographic Areas (Details) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Property and equipment, net	$ 316.1		$ 322.0
Revenue	562.4	$ 511.6
United States
Segment Reporting Information [Line Items]
Property and equipment, net	307.0		316.6
Revenue	299.2	266.9
International
Segment Reporting Information [Line Items]
Property and equipment, net	9.1		$ 5.4
Revenue	$ 263.2	$ 244.7

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

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+ Details