Cloud file storage firm Dropbox Q3 revenue beats estimates

Dropbox

06/11/2025 21:39

Overview

Dropbox Q3 revenue down 0.7% yr/yr but beats analyst expectations

Adjusted EPS for Q3 beats consensus, reflecting operational efficiency

Company highlights new AI assistant and search engine integration

Outlook

Company did not provide specific financial guidance in the press release

Result Drivers

OPERATIONAL EFFICIENCY - Dropbox exceeded revenue guidance and improved operating margins through efficiency measures

AI PRODUCT LAUNCH - Launch of self-serve version of Dash and AI integration received positive early customer feedback

COST REDUCTION - Increased operating margins partially due to decreased employee-related costs from reduced headcount

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$634.40 mln
$623.50 mln (10 Analysts)
Q3 Adjusted EPS
Beat
$0.74
$0.65 (10 Analysts)
Q3 EPS
$0.47
Q3 Adjusted Net Income
Beat
$196.70 mln
$175.20 mln (8 Analysts)
Q3 Net Income
$123.80 mln
Q3 Gross Margin
79.80%
Q3 Adjusted EBIT Margin
41.10%
Q3 EBIT Margin
27.50%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and 4 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy."

Wall Street's median 12-month price target for Dropbox Inc is $29.00, about 0.4% below its November 5 closing price of $29.13

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw8jB0bha

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)