Dropbox Q2 revenue slightly beats estimates on workforce reduction expenses
Dropbox Q2 revenue slightly beats estimates on workforce reduction expenses
Overview
Cloud storage provider's Q2 revenue rose 0.9%, slightly beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company added 96,000 paying users, third consecutive quarter of user growth
Outlook
Company did not provide specific guidance in the press release
Result Drivers
CORE BUSINESS GROWTH - Co said revenue growth was driven by continued momentum in its core business, excluding FormSwift
USER ADDITIONS - Paying users increased by 96,000 quarter-over-quarter, marking the third consecutive quarter of growth
STRATEGIC REORGANIZATION - Co incurred expenses related to a workforce reduction as part of a strategic reorganization to unify its product organization
Company press release: ID:nBw1xHrxQa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Beat* | $631.50 mln | $626.73 mln (7 Analysts) |
Q2 Adjusted EPS | Beat | $0.75 | $0.74 (7 Analysts) |
Q2 EPS |
| $0.42 |
|
Q2 Adjusted Net Income | Beat | $170 mln | $167.39 mln (6 Analysts) |
Q2 Net Income |
| $95.80 mln |
|
Q2 Gross Margin |
| 80.20% |
|
Q2 Adjusted EBIT Margin |
| 39.70% |
|
Q2 EBIT Margin |
| 26.10% |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "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 $28.00, about 20% below its August 5 closing price of $35.00
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
Aug 3 - Backblaze Q2 revenue beats estimates; shares of the company were up about 13% in extended trading
Aug 4 - DigitalOcean forecast beats Wall Street estimates on AI boom strength
Aug 5 - Bumble forecasts downbeat quarterly revenue as paying users drop
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@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.)