Dropbox Inc DBX stock is trading higher after the company reported better-than-expected second-quarter financial results Thursday. The results came during an exciting earnings season. Here are key analyst takeaways. Goldman Sachs Kash Rangan reiterated a Sell rating while lowering his price target to $20 from $22. RBC Capital Markets analyst Rishi Jaluria maintained an Outperform rating with a price target of $32. Goldman Sachs: Dropbox gained after marginally beating the consensus in ARPU, paying users, re ...

Dropbox (DBX) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 15.38%. A quarter ago, it was expected that this online file-sharing company would post earnings of $0.49 per share when it actually produced earnings of $0.58, delivering a surprise of 18.37%. Over the last four quarters, ...

Financial Data and Key Metrics - Q2 2024 revenue increased 1.9% YoY to $635M, slightly above the high end of prior guidance [21] - Total ARR grew 2.9% YoY to $2.573B, with constant currency growth of 2.2% [21] - Paying users reached 18.22M, adding 63K net new users sequentially [21] - Average revenue per paying user was $139.93 [21] - Gross margin was 84.5%, benefiting from a change in server useful life [22] - Operating margin was 35.9%, up 170 bps YoY [23] - Net income increased 12% YoY to $194M, with diluted EPS of $0.60, up 18% YoY [23] - Free cash flow was $225M, up 28% YoY [24] Business Line Performance - Individual self-serve plans showed strength, offsetting challenges in the Teams business [4] - DocSend's Advanced Data Room performed well, offsetting seasonal pressure in FormSwift [5] - Teams business faced headwinds from macro challenges, price sensitivity, and storage limit changes [8] - Sharing activity improved YoY in Q2 after declines due to fragmented user experience [11] - Mobile user growth continued, with a redesigned mobile web experience driving trial starts [12] Market and Geographic Performance - Foreign exchange rates had minimal impact on revenue, with constant currency growth of 1.8% [21] - The company is focusing on priority industries like professional services, manufacturing, and media [9] Strategy and Competitive Landscape - The company is prioritizing improvements in the Teams business and Dash, its AI-powered universal search product [6] - Investments in onboarding and invitation flows have improved Teams activation rates [7] - Dash is being developed with a focus on AI summarization and search efficiency, targeting IT admins' security needs [16] - The company is refining its customer segmentation model to align product development and go-to-market efforts [8] Management Commentary on Operating Environment and Outlook - The macro environment remains challenging for SMBs, with near-term volatility expected in the Teams business [28] - Seasonal pressure on FormSwift and headwinds in the Sign business are expected to impact paying user growth [29] - Full-year revenue guidance was narrowed to $2.540B-$2.550B, with operating margin expected between 33.5%-34% [27] - Free cash flow guidance remains unchanged at $910M-$950M [27] Other Important Information - The company repurchased 11M shares for $260M in Q2, with $868M remaining under the current authorization [25] - Partial provisioning and standalone purchasing options are being introduced to improve customer flexibility [13] - Bundling strategy adjustments were made after initial results fell short of expectations [14] Q&A Summary Question: Monetization plans for Dash and pricing strategy [33] - Dash is pre-revenue and in beta, with pricing expected to follow a subscription model similar to Dropbox 1.0 [34] Question: Teams business challenges and competitive dynamics [35] - Teams challenges are driven by macro pressures and price sensitivity, with some competitive factors but no new dynamics [36][37] Question: Customer feedback and monetization for Dash [39] - Early feedback on Dash has been positive, with strong value proposition and product quality improvements [40] - IT admins' unmet security needs are a focus for Dash development [41] Question: Impact of security incident on Sign business [42] - The security incident was isolated to Dropbox Sign and had minimal impact on overall revenue [42] Question: Right to win for Dash and potential pricing strategies [45] - Dash addresses a universal knowledge worker need, leveraging Dropbox's scale and security track record [46][50] - Pricing strategies may include bundling and volume-based options [52] Question: Progress on individual plans and bundling [55] - The company is making progress in reducing friction in onboarding and sharing experiences [56] Question: Hiring efficiencies and Dash GA timeline [58] - Hiring efficiencies include prioritizing lower-cost regions and managing vendor spend [58] - More details on Dash's GA and pricing will be shared later this year [59]

Dropbox Announces Fiscal 2024 Second Quarter Results Second Quarter Revenue of $634.5 Million, up 1.9% year-over-year; on a constant currency basis, up 1.8% year-over-year GAAP Operating Margin of 20.0% and Non-GAAP Operating Margin of 35.9% Net Cash Provided by Operating Activities of $230.6 Million and Free Cash Flow of $224.7 Million SAN FRANCISCO, Calif. - August 8, 2024 - Dropbox, Inc. (NASDAQ: DBX), today announced financial results for its second quarter ended June 30, 2024. "In Q2, we improved the f ...

Although it is always a good idea to monitor volume change and price resilience, some stocks — especially those categorized as overhyped stocks to sell when they reach new highs — have more fishy fundamentals than others, particularly if there is a possibility of a recession. The global equity sell-off on Monday certainly hinted at a hard landing scenario. Citi (NYSE:C) economist Andrew Hollenhorst wisely noted that "Once you start to worry about [a] recession, you are usually in a recession." Despite inter ...

Dropbox (DBX) is scheduled to report its second-quarter 2024 results on Aug 8. For the to-be-reported quarter, Dropbox expects revenues between $628 million and $631 million. Non-GAAP operating margin is expected to be roughly 33%. The Zacks Consensus Estimate for revenues is currently pegged at $629.65 million, suggesting growth of 1.15% from the year-ago quarter's reported figure. The consensus mark for earnings is pegged at 52 cents per share, unchanged over the past 30 days and indicating 1.96% growth f ...

About this content Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Use of technology Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments ...

Disney (DIS) Questionable leadership, disappointing long-term returns, and activist initiatives that went nowhere suggest that investors may want to stay away from Disney stock. A potential strike will only make things worse. Workhorse is one of the many EV stocks that captured investors' imaginations as long as they didn't look at pesky things like fundamentals and long-term viability. Workhorse has commercial vehicles, but it's never a good sign when the company publishes a press release about regaining c ...

Dropbox's expanding AI-powered product portfolio has been a key catalyst in driving up the paid user base. Its strategy of leveraging AI to develop products that organize all cloud content on a single platform is a positive. Image Source: Zacks Investment Research Dropbox is benefiting from an innovative portfolio and strong partner base that includes the likes of Google, Slack, Adobe, Atlassian, Zoom, Microsoft (MSFT) , Salesforce (CRM) and NVIDIA (NVDA) . Dash's latest enhancements improve search function ...

Founders eagerly seek capital while investors gear up to use dry powder DocSend, a secure document sharing platform and Dropbox (NASDAQ: DBX) company, today released a data analysis of its Pitch Deck Interest (PDI) metrics showing 2024 investor pitch deck engagement rose after global startup funding hit a five-year low. The analysis shows VCs are confident in the marketplace and founders (activity up 10.8% YoY) may finally be able to get the funding they need. DocSend, a secure document sharing platform and ...