According to reports, cloud storage company Dropbox has projected to be hitting a $1 billion annual run rate this year, an important measure of revenue. This milestone was officially confirmed, announced and shared by CEO Drew Houston at an event in San Francisco today.

About annual run rate

Basically, the annual run rate, or ARR, measures the amount of money that a particular company projects it will hoard in this year if current's rate of business were to continue. If Dropbox makes about $250 million or more in a single quarter, the company could fairly say that it has a $1 billion annual run rate by extending that out for the next three-quarters.

According to BusinessInsider, Houston has also shared that Dropbox currently has over 500 million users, with 200,000 business customers. Most of the company's revenue is self-serve, according to Houston, which means that it comes from customers signing up to apply for paid plans directly via the Dropbox website and apps and not on salespeople.

Dropbox is going big

In June of 2016, Houston announced that Dropbox was a free cash flow positive, which, as should be noted, is pretty much different from "profitable." With these two factors combine, they will serve as important milestones for the 10-year-old cloud storage company, as Forbes has reported Dropbox to be considering an IPO later this year.

However, Drew Houston still insists that the company is not in any rush to go public and that its current position affords it the convenience of waiting for the right moment. "We currently have the flexibility to go when the time and moment are right for us," Houston told BusinessInsider in December.

Two new Dropbox features

Houston also used the event to launch two new features for Dropbox, intended to focus on the lucrative business space: Dropbox Paper, its long projected counter to Google Docs; and Dropbox Smart Sync, a feature to solidify all your files across servers and the cloud and make it a lot more searchable.