Estimate Dropbox's Addressable Revenue Among Small and Mid-Sized Businesses

Estimate the size of the small and medium-sized business market for Dropbox. ```hint Define the unit, then the buyer Settle whether the answer is in businesses, seats or dollars before multiplying anything, and ask which small businesses would ever pay for file storage on its own. ``` ### Clarifying Questions - Should the market be expressed as annual revenue, as the number of paying businesses, or as paid seats? - Is the scope the US or worldwide, and where is the small-business cut-off: fewer than 500 employees, and do one-person businesses count? - Do you want the total addressable market for business file storage and sharing, or only the part Dropbox could realistically win, given the storage that office suites such as Microsoft 365 and Google Workspace already include? ### What a Strong Answer Covers - A definition of the market unit, geography and business-size cut-off agreed before any numbers - Segmentation by business size that reflects how the share of desk workers and the seats per business change with size - Labeled, round assumptions for business counts, seats and price per seat, with arithmetic an interviewer can follow - A step from total addressable to serviceable market that reflects competition from bundled storage - A sanity check against an independent anchor, and a view of which assumption moves the answer most ### Follow-up Questions - Which assumption is your estimate most sensitive to, and how would you check it with real data? - How would the market size change if pricing moved from per seat to per terabyte of storage? - Given this sizing, which small-business segment would you prioritize first, and why?