Pitch Deck Interest metrics post gains in investor engagement after six quarters of consistent decline SAN FRANCISCO, Jan. 17, 2024 /PRNewswire/ -- DocSend, a secure document sharing platform and Dropbox (NASDAQ: DBX) company, released a new data analysis of startup fundraising showing positive momentum for the first time in six quarters, based on investor engagement with pitch decks. The Pitch Deck Interest (PDI) metrics prompt hope for increased dealmaking in Q1, due to encouraging year-over-year (YoY) in ...

Every day for the next three weeks, we're going to highlight one of Schaeffer's top 12 picks for 2024. First up, we have software stock Dropbox Inc (NASDAQ:DBX). To access the entirety of the 2023 report, click here.Software stock Dropbox (DBX) is knocking at the $10 billion valuation plateau around $29 for the sixth time in the last six months. The company -- which has begun collaborating with semiconductor stalwart NVIDIA (NVDA) -- reported a top-line beat for the third quarter that also included an upwar ...

Dropbox, Inc. (NASDAQ:DBX) Q3 2023 Earnings Call Transcript November 2, 2023 5:00 PM ET Company Participants Karan Kapoor - Head of Investor Relations Tim Regan - Chief Financial Officer Conference Call Participants Matt Bullock - Bank of America Sonak Kolar - JPMorgan Steve Enders - Citi Richard Poland - RBC Capital Markets Eylon Liani - Jefferies Pat Walravens - JMP Securities Operator Good afternoon, ladies and gentlemen, thank you for joining Dropbox's Third Quarter 2023 Earnings Conference Call. All pa ...

A video collaboration tool that makes it easier to collect, manage, and respond to feedback, all in one place DocSend A video and presentation sharing platform with advanced analytics to see what your visitors are really watching & Dropbox 12 Shared team workspace Data governance and audit logs & Dropbox 13 Dropbox Business Teams Expansion Simplified team collaboration invites for shared content | --- | --- | --- | --- | --- | --- | |-------|------------------------------------------------------------------ ...

User Base and Growth - Dropbox serves over 700 million registered users across approximately 180 countries, with 18.17 million paying users as of September 30, 2023[203][204]. - The company has seen an increase in Total ARR due to a price increase for existing users and a higher mix of sales from premium subscription plans[226]. - As of September 30, 2023, the number of paying users increased to 18.17 million from 17.77 million as of December 31, 2022, and 17.55 million as of September 30, 2022[234]. - The growth rates of paying and registered users have declined, potentially impacting future revenue growth[340]. - The number of paying users has increased from 8.81 million as of December 31, 2016, to 18.17 million as of September 30, 2023[382]. Financial Performance - Total annual recurring revenue (Total ARR) increased to $2.525 billion as of September 30, 2023, compared to $2.514 billion at the end of 2022 and $2.431 billion at the end of September 2022[228]. - Revenue for the three months ended September 30, 2023, was $633.0 million, an increase from $591.0 million in the same period of 2022, and for the nine months ended September 30, 2023, revenue was $1,866.6 million compared to $1,726.1 million in 2022[262]. - Net income for the three months ended September 30, 2023, was $114.1 million, up from $83.2 million in the same period of 2022, and for the nine months ended September 30, 2023, net income was $226.3 million compared to $224.9 million in 2022[262]. - Free cash flow (FCF) for the nine months ended September 30, 2023, was $569.1 million, a decrease from $581.8 million in the same period of 2022, primarily due to workforce reduction payments[244]. - Average revenue per paying user (ARPU) for the three months ended September 30, 2023, was $138.71, up from $134.31 in the same period of 2022, and for the nine months ended September 30, 2023, it was $140.63 compared to $134.41 in 2022[239]. Expenses and Investments - Operating expenses for the three months ended September 30, 2023, totaled $382.7 million, a decrease from $392.0 million in the same period of 2022, and for the nine months ended September 30, 2023, operating expenses were $1,238.8 million compared to $1,136.0 million in 2022[262]. - The company plans to continue investing in research and development, with expectations for costs to decrease in the near term but increase in the long term as growth initiatives are pursued[254]. - Research and development expenses for the nine months ended September 30, 2023, increased by $61.0 million or 9.3% to $714.4 million compared to $653.4 million in the same period of 2022[281]. - Sales and marketing expenses for the nine months ended September 30, 2023, increased by $42.1 million or 13.8% to $346.4 million compared to $304.3 million in the same period of 2022[283]. Macroeconomic Impact - The impact of macroeconomic factors, including rising interest rates and market volatility, has affected customer behavior and performance in Teams plans and other services[215][216]. - Economic conditions, including inflation and geopolitical issues, could negatively affect consumer spending on the company's platform, potentially leading to reduced revenue[347]. - A hypothetical increase in interest rates by 100 basis points would have resulted in an $8.4 million reduction in the market value of the company's investment portfolio[315]. Security and Compliance Risks - The company faces significant risks from unauthorized access to its data and user content, which could lead to financial liabilities and reputational damage[341]. - Security threats from malicious third parties are expected to grow in complexity, impacting the company's ability to protect user data and maintain trust[342]. - The company has implemented systems and processes to enhance cybersecurity, but past incidents indicate that these measures may not fully prevent future breaches[343]. - The company faces challenges in maintaining compliance with international laws and regulations, which could increase operational costs[390]. Strategic Challenges - The competitive landscape for content collaboration platforms is intensifying, with major competitors like Microsoft and Google posing significant challenges[349]. - The demand for the company's platform is sensitive to pricing strategies, influenced by competitors offering lower-priced or free alternatives[351]. - The company must ensure interoperability across various devices and third-party applications, which is critical for maintaining user engagement and satisfaction[354]. - The company relies on third-party vendors for infrastructure, which exposes it to additional security risks and potential data breaches[344]. Future Outlook - The company expects free cash flow to generally increase in future periods as subscription sales grow and operating efficiencies are driven[243]. - The company anticipates that trends towards remote work will create market opportunities, but these may not materialize as expected[367]. - The ability to forecast future results is subject to uncertainties, including the effectiveness of planning for growth[371].

Dropbox, Inc. (NASDAQ:DBX) Q2 2023 Earnings Conference Call August 3, 2023 5:00 PM ET Company Participants Karan Kapoor - Head of Investor Relations Drew Houston - Co-Founder and Chief Executive Officer Tim Regan - Chief Financial Officer Conference Call Participants Rishi Jaluria - RBC Capital Markets Sonak Kolar - JPMorgan Steve Enders - Citi Michael Funk - Bank of America Eylon Liani - Jefferies Jacob Staffel - Goldman Sachs Operator Good afternoon, ladies and gentlemen. Thank you for joining Dropbox Sec ...

Shared team workspace Data governance and audit logs Advanced security alerts & notifications Non-GAAP reconciliation Twelve Months Ended Note: % are rounded for presentation purposes Note: % are rounded for presentation purposes *Vault is only available in Plus, Family, and Professional. Size of Dropbox Transfer varies based on Dropbox plan: Basic (100MB), Plus, Family, & Standard (2GB), Professional, Advanced, and Enterprise (100GB). Professional, Advanced, and Enterprise plans also receive advanced Trans ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________to________ Commission File Number 001-38434 Dropbox, Inc. (Exact name of Registrant as specified in its charter) Indicate by check mark whether the regi ...

Dropbox, Inc. (NASDAQ:DBX) 51st Annual J.P. Morgan Global Technology, Media and Communications Conference May 22, 2023 4:30 PM ET Company Participants Tim Regan - CFO Conference Call Participants Mark Murphy - J.P. Morgan Mark Murphy Okay. Good afternoon, everyone. I'm Mark Murphy, software analyst with JPMorgan. And it's a real pleasure to be here with Tim Regan, who is the CFO of Dropbox. So first of all, Tim, thank you for taking some time out of your schedule to be here with us. Tim Regan Terrific. Than ...

User Base and Revenue - Dropbox serves over 700 million registered users across approximately 180 countries[202] - The company has 17.90 million paying users as of March 31, 2023[203][232] - Total Annual Recurring Revenue (ARR) reached $2.468 billion as of March 31, 2023, up from $2.290 billion in March 2022[226] - Average Revenue Per User (ARPU) increased to $138.97 for Q1 2023, compared to $134.63 in Q1 2022[237] - Revenue grew by 8.7% to $611.1 million in Q1 2023, driven by an increase in paying users, the acquisition of FormSwift, and repricing of Dropbox plans[265] - Revenue is primarily generated from subscriptions to the platform, with 17.90 million paying users as of March 31, 2023, up from 8.81 million in December 2016[367] - Dropbox has paying users across approximately 180 countries, with approximately half of its revenue in 2022 generated from users outside the United States[369] Financial Performance - Free cash flow (FCF) increased to $138.0 million in Q1 2023, up from $130.7 million in Q1 2022, primarily due to a decrease in capital expenditures[242] - Gross profit increased by 10.0% to $494.3 million in Q1 2023, with gross margin improving to 81% from 80% in Q1 2022[266] - Net income decreased to $69.0 million in Q1 2023, down from $79.7 million in Q1 2022, primarily due to higher operating expenses and a provision for income taxes[261] - The company generated net income of $553.2 million and $335.8 million during the years ended December 31, 2022 and 2021, respectively[401] - The company had an accumulated deficit of $2,772.1 million as of March 31, 2023[401] - The company's revenue growth rate has declined and may continue to slow due to factors such as increased competition and slowing demand for its platform[400] Expenses and Costs - Cost of revenue rose by 3.5% to $116.8 million in Q1 2023, primarily due to increases in credit card fees, employee-related costs, and amortization of intangible assets[266] - Research and development expenses increased to $235.2 million in Q1 2023, up from $210.8 million in Q1 2022, driven by employee-related costs and stock-based compensation[261] - Sales and marketing expenses grew to $119.2 million in Q1 2023, compared to $95.7 million in Q1 2022, reflecting increased investment in user growth and brand awareness[261] - Research and development expenses increased by $24.4 million (11.6%) in Q1 2023 compared to Q1 2022, driven by $16.0 million in employee-related costs, $5.4 million in software licenses, and $3.0 million in overhead, partially offset by a $6.7 million reversal of stock-based compensation[268] - Sales and marketing expenses rose by $23.5 million (24.6%) in Q1 2023, primarily due to $15.3 million in advertising, $4.8 million in employee costs, $2.2 million in intangible asset amortization, and $1.0 million in app store fees[270] - General and administrative expenses increased by $2.3 million (4.3%) in Q1 2023, mainly from $4.8 million in employee costs, offset by a $3.9 million decrease in non-income taxes[271] - The company's research and development expenses may increase as it plans to hire more employees for engineering, product, and design teams[401] Cash Flow and Investments - The company had $332.7 million in cash and cash equivalents and $920.4 million in short-term investments as of March 31, 2023[275] - The company repurchased 8.1 million shares of Class A common stock for $176.5 million in Q1 2023, including a 1% excise tax under the Inflation Reduction Act[278] - Net cash provided by operating activities was $139.9 million in Q1 2023, driven by $69.0 million in net income, $76.0 million in stock-based compensation, and $42.5 million in depreciation and amortization[288] - Net cash provided by investing activities was $200.8 million in Q1 2023, primarily from $199.4 million in net investment inflows[291] - Net cash used in financing activities was $241.3 million in Q1 2023, including $175.4 million for share repurchases and $34.1 million for tax withholding on stock awards[293] - Cash and cash equivalents of $332.7 million and short-term investments of $920.4 million as of March 31, 2023[297] - A hypothetical 100 basis points increase in interest rates would reduce the market value of the investment portfolio by $13.0 million[299] Acquisitions and Strategic Moves - Dropbox acquired FormSwift in Q4 2022, contributing to ARR growth[224] - The company repackaged and increased prices for Dropbox Standard and Advanced plans, leading to higher ARR[224] - Dropbox acquired key assets from Boxcryptor in Q4 2022 to enhance data protection for paid customers and acquired FormSwift, a cloud-based service for business forms[381] - Dropbox's acquisitions may require significant management attention, incur debt, or dilute stockholder value, with potential integration challenges[382][386] Workforce and Operational Changes - Dropbox announced a 16% reduction in its global workforce on April 27, 2023, to streamline operations[220] - The company shifted to a Virtual First work model, resulting in cost savings in facilities and depreciation expenses[219] - The company operates under a Virtual First work model, which may impact productivity, employee retention, and operational efficiency[361][362] - The company recorded impairment charges related to unused office space due to the shift to a Virtual First model, impacting GAAP profitability[363] - The company's shift to a Virtual First work model may result in additional impairment charges or unanticipated expenses related to subleasing facilities[401] Market Competition and Risks - Pricing strategies are sensitive to competition, with some competitors offering lower-priced or free alternatives, potentially forcing the company to engage in price-cutting initiatives[335] - The company operates in a highly competitive market, facing competition from major players like Microsoft, Google, and Adobe, as well as smaller private companies offering point solutions[333] - The company faces risks from rapid technological changes and competition, requiring significant investments in AI-driven products and new features[349][351] - The content collaboration market is subject to rapidly changing user preferences, which could negatively impact demand for the platform[348] - The company may face challenges in scaling its business due to a limited outbound sales force, with over 90% of revenue generated from self-serve channels[365] - Sales to large organizations could lengthen sales cycles and increase deployment challenges, potentially impacting revenue growth[366] Cybersecurity and Data Protection - Unauthorized access to data or user content could result in significant liabilities, regulatory investigations, and reputational damage, potentially reducing revenue and increasing user acquisition costs[323] - The company faces ongoing and evolving cybersecurity threats, including malware, ransomware, and phishing attacks, which could compromise user data and harm its market position[325] - The company relies on third-party vendors and contractors for infrastructure, increasing exposure to security risks outside its direct control[327] - The company faces risks from third-party developers and partners who may fail to adopt adequate data security practices, potentially leading to unauthorized access to user data[328] International Operations and Compliance - Dropbox faces risks in international expansion, including compliance with laws, data protection, cybersecurity, and geopolitical conflicts[371][372] - Dropbox's international operations are subject to higher costs, including accounting, travel, infrastructure, and legal compliance[371] - 27% of sales were denominated in currencies other than U.S. dollars for the three months ended March 31, 2023[302] - Net foreign currency transaction gains of $0.8 million for the three months ended March 31, 2023[303] Legal and Regulatory Risks - A jury trial for a patent infringement case is scheduled for May 2023[312] - Dropbox's use of open source software may expose it to legal risks, including potential litigation and compliance with unfavorable licensing conditions[379] - The company's platform depends on interoperability with third-party devices, operating systems, and applications, which it does not control, posing risks to compatibility and functionality[339] - Service disruptions or loss of content on the platform could harm the company's brand, reputation, and ability to retain users[342] - Infrastructure capacity planning is critical, with overestimation leading to excess costs and underestimation risking service failures, compounded by global supply chain challenges[344] Debt and Financial Obligations - The company had an aggregate of $1,157.6 million in commitments to settle contractual obligations as of December 31, 2022[394] - The company may face challenges in servicing its 2026 Notes and 2028 Notes, which could require significant cash flow or alternative financing strategies[402] - The company's ability to refinance its indebtedness depends on capital market conditions and its financial condition at the time[402] - The company's leasing and credit obligations, if defaulted, could lead to operational interruptions and adverse effects on its financial condition[394][398] - The company's financial covenants include maintaining a consolidated leverage ratio incurrence covenant and a minimum liquidity balance[392] Product Development and Innovation - Dropbox launched new products in 2022, including Dropbox Replay for video workflows and Dropbox Capture for screen recordings and visual presentations[352] - Dropbox receives over 75 billion API calls per month and has nearly 1,000,000 developers registered on its platform as of December 31, 2022[377] - Dropbox's platform complexity may lead to defects or errors, potentially harming its reputation and financial condition[380] Economic and Geopolitical Risks - Economic downturns, inflation, and geopolitical issues could reduce discretionary spending by users, impacting the company's revenue and growth[330] - Dropbox relies on third-party datacenters, including Amazon Web Services, and any disruptions could harm user experience and increase costs[373][374]