Dropbox jumps more than 40% in trading debut after opening at $29 a share

Cloud storage provider Dropbox jumped more than 40 percent in its first day of trading on the Nasdaq Friday, opening at a price of $29.

The company listed its $756 million IPO under the trading symbol "DBX" and priced its 36 million shares at $21 Thursday, above the expected range of $18 to $20. A source told CNBC that the offering was 25 times oversubscribed.

The pricing makes Dropbox's offering the largest tech IPO since Snap last year and gives the company an initial market capitalization of more than $8 billion.

It's the first of a pair of anticipated tech IPOs this year, soon to be followed by music streaming service Spotify.

Dropbox, once valued as high as $10 billion in the private market, reported more than $1 billion in 2017 revenue and 500 million registered users when its plans to go public were unsealed in February.

The company posted a net loss of $111.7 million in 2017, a narrower loss than 2016's of $210.2 million.

Dropbox has been facing steep expenses driven by a growing R&D budget, but became free-cash-flow positive in 2016.

More than 90 percent of Dropbox's revenue comes from individual users purchasing subscriptions, the company said. That's somewhat unique in the cloud storage industry, where enterprise sales often drive income.

Dropbox faces some stiff competition in giants like Amazon, Apple, Google and Microsoft, but raised long-term profit outlook and expanding margins in confidential documents revealed to investors and seen by CNBC.

The company has been named to CNBC's Disruptor 50 list five times as a company whose innovations have revolutionized its industry and the way we live.

Goldman Sachs, J.P. Morgan, Deutsche Bank and Allen and Company are among the top underwriters for the company's IPO.

—CNBC's Anita Balakrishnan and Leslie Picker contributed to this report.

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