Company Performance - Dropbox (DBX) closed at $27.24, with a +0.41% change from the previous day, outperforming the S&P 500's gain of 0.16% [1] - Over the past month, Dropbox shares gained 3.31%, while the Computer and Technology sector lost 5.94% and the S&P 500 lost 3.59% [1] Earnings Projections - Dropbox is projected to report earnings of $0.62 per share, reflecting a year-over-year growth of 6.9%, with quarterly revenue estimated at $619.06 million, down 1.94% from the previous year [2] - For the full year, earnings are estimated at $2.54 per share and revenue at $2.47 billion, showing changes of +2.01% and -2.9% respectively from the prior year [3] Analyst Estimates - Recent changes to analyst estimates for Dropbox indicate short-term business trends, with upward revisions suggesting analysts' positive outlook on the company's operations [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Dropbox as 1 (Strong Buy), indicating strong potential for stock performance [6] Valuation Metrics - Dropbox has a Forward P/E ratio of 10.67, significantly lower than the industry average of 20.69, suggesting it is trading at a discount [7] - The PEG ratio for Dropbox is 0.93, compared to the industry average of 1.35, indicating favorable valuation relative to expected earnings growth [7] Industry Context - The Internet - Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 151, placing it in the bottom 40% of over 250 industries [8] - Historical data shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Dropbox (DBX) shares slid 11.8% year to date (YTD), underperforming the broader Zacks Computer and Technology sector’s decline of 8% and the Zacks Internet Services industry’s drop of 11.4%.This underperformance was led by sluggish 1.4% year-over-year revenue growth in the fourth quarter of 2024, signaling challenges in expanding the customer base. Mounting competition from larger tech firms offering integrated cloud storage and uncertainty surrounding monetizing new product offerings create challenges.Howe ...

Dropbox (DBX) closed the latest trading day at $26.39, indicating a +0.42% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 1.07%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq lost 1.71%.Coming into today, shares of the online file-sharing company had lost 19.83% in the past month. In that same time, the Computer and Technology sector lost 11.12%, while the S&P 500 lost 7.03%.The investment community will be closely monitoring the performance of Dropbox in ...

Liquidity indicates a company’s capability to meet debt obligations by converting its assets into liquid cash and equivalents. A company with adequate liquidity always has the capability to deliver higher returns, as stable financial resources can drive business growth.Investors may want to consider adding four top-ranked stocks, such as Dropbox, Inc. (DBX) , Ubiquiti Inc. (UI) , EverQuote, Inc. (EVER) and Moelis & Company (MC) to their portfolios to boost returns.Stocks with high liquidity are often sought ...

User Base and Revenue Generation - As of December 31, 2024, the company served over 700 million registered users but only 18.22 million paying users, indicating a significant conversion challenge [100]. - The company generates more than 90% of its revenue from self-serve channels, highlighting the importance of user satisfaction and word-of-mouth referrals for growth [98]. - The company generates revenue primarily from subscription sales, making widespread acceptance of content collaboration solutions critical for future growth [131]. - More than 90% of the company's revenue is generated from self-serve channels, indicating a lack of significant outbound sales force [142]. - The company recorded net foreign currency transaction losses of $3.2 million during the year ended December 31, 2023, while gains and losses were immaterial for 2024 [405]. User Growth Challenges - The growth rate of paying users has declined, and the company anticipates potential negative growth in the near term if new product initiatives do not succeed [110]. - Macroeconomic factors, such as inflation and layoffs, have previously impacted users' technology spending, which may restrict the company's ability to attract new paying users [102]. - The company has experienced fluctuations in paying user renewals and upgrades, which could adversely affect future revenue growth [95]. - The shift towards more customers opting for monthly plans rather than annual plans may lead to fluctuations in subscription renewals [97]. - Pricing sensitivity affects user acquisition and conversion rates, with competitors potentially offering lower-priced alternatives [121]. Operational and Security Risks - The company has faced privacy and data security breaches, which could harm its reputation and customer relationships, potentially affecting revenue [103]. - The company relies on third-party vendors for infrastructure, exposing it to additional security risks that could impact user data [106]. - The company has incorporated AI technologies into its products, which may create additional cybersecurity risks and affect user trust [103]. - The company may incur significant costs and face service interruptions if it cannot renew agreements with datacenters and service providers [152]. - The reliance on third-party software and services poses risks, including potential errors that could harm the platform and business [153]. Financial Performance and Management - Revenue for the year ended December 31, 2024, was $2,548.2 million, a 1.9% increase from $2,501.6 million in 2023 [435]. - Gross profit increased to $2,103.1 million in 2024, up from $2,023.1 million in 2023, reflecting a gross margin improvement [435]. - Total operating expenses for 2024 were $1,616.9 million, compared to $1,484.4 million in 2023, representing an increase of 8.9% [435]. - Net income for 2024 was $452.3 million, slightly down from $453.6 million in 2023, resulting in a basic net income per share of $1.42 [435]. - The company has $1,088.6 million in commitments to settle contractual obligations as of December 31, 2024 [176]. Competitive Landscape - The company operates in a competitive market with significant pressure from larger competitors like Microsoft and Amazon, which may impact its market position [118]. - The company is experiencing intense competition for attracting and retaining highly qualified personnel, which may affect its growth prospects [136]. - The company anticipates that expanding sales to large organizations may lengthen sales cycles and introduce deployment challenges [143]. - Revenue growth rates have declined in recent periods, potentially due to increased competition and market saturation [179]. Regulatory and Compliance Issues - The company faces regulatory uncertainty regarding data transfers from the EEA, UK, and Switzerland to the U.S., which may require additional safeguards and increase costs [207]. - The California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA) have imposed expanded privacy protections, leading to increased compliance costs [208]. - The Digital Services Act (DSA) in the EU includes fines of up to 6% of annual turnover for non-compliance, potentially impacting business operations [210]. - The company may incur significant costs due to compliance with various privacy and data protection laws, which could limit the adoption and demand for its services [212]. Corporate Governance and Shareholder Matters - As of December 31, 2024, the company's directors and executive officers held 77.5% of the voting power of its capital stock, with one individual holding approximately 77.4% [223]. - The company plans to reincorporate from Delaware to Nevada, with the expected transition occurring in March 2025 [233]. - The multi-class stock structure allows holders of Class B common stock to control a majority of the voting power, potentially limiting influence from other shareholders [223]. - Future sales of Class A common stock could depress its market price, particularly if those sales are by officers and directors [226]. - The company announced a stock repurchase program with an authorization for repurchase of up to an additional $1.2 billion of Class A common stock, totaling approximately $4.0 billion repurchased since 2020 [239]. Financial Position and Assets - The total assets of the company increased to $3,325.2 million as of December 31, 2024, compared to $2,983.5 million in 2023, reflecting a growth of approximately 11.5% [432]. - Cash and cash equivalents rose significantly to $1,328.3 million in 2024 from $614.9 million in 2023, marking an increase of approximately 116.5% [432]. - The company's total liabilities increased to $4,077.6 million in 2024 from $3,149.3 million in 2023, representing a rise of about 29.4% [432]. - The accumulated deficit grew to $(3,146.5) million in 2024 from $(2,742.3) million in 2023, indicating an increase of approximately 14.7% [432]. - The company's deferred revenue was $727.7 million as of December 31, 2024, slightly up from $725.0 million in 2023 [432].

Dropbox (DBX) reported fourth-quarter 2024 non-GAAP earnings of 73 cents per share, surpassing the Zacks Consensus Estimate by 17.74% and increasing 46% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.DBX’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the earnings surprise being 13.33%, on average.Revenues of $643.6 million inched up 1.4% year over year and beat the consensus mark by 0.79%. Total annual recurring revenues were $2.574 billion ...

Dropbox, Inc. (NASDAQ:DBX) Q4 2024 Earnings Conference Call February 20, 2025 5:00 PM ET Company Participants Peter Stabler - Head, Investor Relations Drew Houston - Co-founder and Chief Executive Officer Tim Regan - Chief Financial Officer Conference Call Participants Rishi Jaluria - RBC Capital Markets Steve Enders - Citi Matt Bullock - Bank of America Patrick Walravens - Citizens Bank Sonak Kolar - JP Morgan Alex Nguyen - Jefferies Operator Good afternoon, ladies and gentlemen. Thank you for joining Drop ...

Financial Results & Investor Presentation Q4 2024 1 Safe Harbor Statement This presentation contains forward-looking statements. These statements may relate to, but are not limited to, plans for growth, technological capabilities and new features and products and the long-term financial targets of Dropbox, Inc. ("Dropbox," "we," "us," or similar terms), as well as assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be pred ...

Dropbox Announces Fourth Quarter and Fiscal 2024 Results Fourth Quarter Revenue of $643.6 Million, up 1.4% year-over-year; on a constant currency basis, up 1.1% year-over-year GAAP Operating Margin of 13.7% and Non-GAAP Operating Margin of 36.9% Net Cash Provided by Operating Activities of $213.8 Million and Free Cash Flow of $210.5 Million Fiscal 2024 Revenue of $2.548 Billion, up 1.9% year-over-year; on a constant currency basis, up 1.7% year-over-year GAAP Operating Margin of 19.1% and Non-GAAP Operating ...

Dropbox(NASDAQ: DBX ) is functioning as a mature company in a growing market. This signals that competition is strong, and Dropbox is losing market share. Cloud companies are providing good, bundled solutions that provide more value for each company. In contrast, Dropbox is showing a goodI'm an Industrial Engineer. I read a lot of books and I'm very inspired by the quality investing branch. I look to buy and hold for the long term. Mainly focused on Tech stocksAnalyst’s Disclosure: I/we have no stock, optio ...