Dropbox Inc is well on the course to earn $1 billion annual run rate (ARR). The announcement was made by the company's CEO Drew Houston on Tuesday during an event at San Francisco.

ARR means the amount of money the company anticipates to earn in the current financial year if its current growth rate were to continue.  The company reportedly generated $102.8 million revenue in the last quarter.   

Like Us on Facebook

Houston backed the $1 billion ARR claim with some impressive figures that denoted company's sound financial status. He said that Dropbox currently boasts of over 500 million users, including 200,000 business customers.

He also proudly stated that Dropbox's revenue is "self-served," meaning that most customers are willingly signing up for the company's paid plans without the help of any sales or marketing.     

Tuesday's positive announcements are likely to be seen as a huge boost for its rumored 2017 IPO.

However, Houston has categorically stated that his company is not in any rush to go public as its sound financial position offers the luxury of waiting for right moment.  

"We have the flexibility to go when the timing is right for us," Houston told Business Insider in December," Houston told Business Insider in December.

The CEO also used Tuesday's event to introduce two new Dropbox's features: Dropbox Paper and Dropbox Smart Sync. While Dropbox Paper is supposedly the answer to Google Docs, Dropbox Smart Sync helps in consolidating files across servers and cloud while making it searchable.

Houston founded Dropbox along with MIT partner Arash Ferdowsi in 2007, after receiving seed funding from Y Combinator. The start-up company was founded with the aim to offer services in cloud storage, file synchronization, personal cloud, and client software.

During its decade-long operation, the start-up company has steadily evolved into one of the reputed global start-up companies. However, several industry experts feel that the increasing competition means that the road ahead for Dropbox is immensely tough.