Dropbox is among a number of public companies that are increasingly turning to direct lenders for easy access to financing. Blackstone Inc. has expanded its private credit line for the file-sharing site Dropbox Inc. to $2.7 billion, nine months after striking the initial deal. Most Read from Bloomberg Dropbox increased its leverage by $700 million while authorizing a new $1.5 billion stock buyback plan, a filing and company statement show. Blackstone first put together a $2 billion private credit loan in ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, it's pretty easy to find cutting-edge growth stocks with the he ...

Industry Overview - The Internet - Services industry is influenced by macroeconomic factors such as inflation, interest rates, labor markets, and supply chain issues, with a generally positive outlook in a stronger economy [1][6] - Companies in this industry rely on substantial software and hardware infrastructure to deliver services globally, accessible via personal connected devices [5] - The industry operates under two primary models: ad-based and ad-free, with major players including Alphabet, Baidu, and Akamai, alongside emerging companies like Dropbox and Crexendo [6] Investment Opportunities - Dropbox (DBX) and Crexendo (CXDO) are highlighted as attractive investment options due to their growth prospects, AI adoption, and cost-cutting measures [2][17] - The Zacks Internet - Services industry has improved its rank, now positioned in the top 40% of 245 Zacks-classified industries, indicating several opportunities [9][11] Financial Performance - The industry has experienced a net gain of 29.9% over the past year, outperforming the broader Technology sector's 22.2% gain and the S&P 500's 15.6% gain [12] - The forward 12-month price-to-earnings (P/E) ratio for the industry is currently at 21.24X, which is a premium to its median value of 19.76X over the past year but a discount to the S&P 500's 22.8X [15] Company-Specific Insights Dropbox (DBX) - Dropbox has integrated AI into its business to enhance customer experience, leading to a 15.6% increase in share price over the past year [20] - The company beat earnings estimates by 19.5% in the last quarter, with 2025 revenue and earnings growth expected at -2.2% and 7.6%, respectively [20] Crexendo (CXDO) - Crexendo operates in a niche market, providing cloud communication solutions and has seen significant growth opportunities through AI integration [23][24] - The company topped revenue estimates by 2.2% and earnings by 75% in the last quarter, with expected revenue and earnings growth of 10.9% and 9.1% for the following year [26]

Group 1 - The core viewpoint is that Dropbox (NASDAQ: DBX) may be experiencing a structural decline, leading to a previous sell rating [1] - Recent results from Dropbox did not alter the perception of its long-term investment potential [1] - The investment strategy focuses on long-term investments while also considering short-term opportunities to uncover alpha [1] Group 2 - The investment approach is based on bottom-up analysis, emphasizing the fundamental strengths and weaknesses of individual companies [1] - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals and growth potential [1]

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, which can lead to solid returns, but identifying such stocks is challenging due to inherent risks and volatility [1] Company Analysis - Dropbox is currently highlighted as a recommended growth stock due to its favorable Growth Score and a top Zacks Rank [2] - The historical EPS growth rate for Dropbox stands at 34.6%, with projected EPS growth of 7.7% this year, significantly outperforming the industry average of 1.5% [5] - Year-over-year cash flow growth for Dropbox is reported at 16.2%, compared to an industry average of -5.8%, indicating strong cash flow performance [6] - The annualized cash flow growth rate for Dropbox over the past 3-5 years is 29.5%, while the industry average is 13% [7] - Current-year earnings estimates for Dropbox have been revised upward, with the Zacks Consensus Estimate increasing by 1.7% over the past month [8] - Dropbox has achieved a Growth Score of A and a Zacks Rank of 2, positioning it well for potential outperformance in the market [10]

Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or a ...

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, 2025 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) (State or other jurisdiction of incorpo ...

Core Insights - Dropbox (DBX) reported second-quarter 2025 non-GAAP earnings of 71 cents per share, exceeding the Zacks Consensus Estimate by 12.7% and reflecting an 18.3% year-over-year increase [1][9] Financial Performance - Revenues for the quarter were $625.7 million, a decline of 1.4% year over year, but surpassed the consensus mark by 1.28%. On a constant currency basis, revenues fell 1.3% [2] - Total annual recurring revenues (ARR) were $2.54 billion, down 1.2% year over year, with a constant currency decrease of 1.1%. FormSwift negatively impacted ARR by 160 basis points [3][2] - The company reported a non-GAAP gross margin of 82.2%, down 230 basis points year over year, while the non-GAAP operating margin increased to 41.5%, up 550 basis points year over year due to cost reductions [7][8][9] User Metrics - As of the end of the second quarter, Dropbox had 18.13 million paying users, a sequential decline of approximately 34,000. The average revenue per paying user (ARPU) was $138.32, down from $139.93 in the previous year [4] - The company expects a decline of approximately 1.5% in paying users for 2025, with FormSwift contributing to roughly half of this decline [14] Strategic Initiatives - Dropbox launched new features in April aimed at enhancing user productivity, including intranet features and rich media search, which now accounts for a double-digit percentage of total queries [5][4] - Initiatives to redesign the Teams onboarding experience have led to a 5% improvement in activation rates and a 10% improvement in setup rates [6] Cash Flow and Share Repurchase - As of June 30, 2025, Dropbox had cash, cash equivalents, and short-term investments totaling $954.7 million, down from $1.18 billion as of March 31, 2025. The company generated $260.5 million in cash from operating activities during the quarter [10] - In the second quarter, Dropbox repurchased 14 million shares for $400 million, with $470 million remaining under existing share repurchase authorizations [11] Guidance - For Q3 2025, Dropbox expects revenues between $622 million and $625 million, anticipating a negative impact from FormSwift of 170 basis points [12] - For the full year 2025, the company projects revenues between $2.49 billion and $2.5 billion, with FormSwift expected to negatively impact revenues by 150 basis points [13]

Dropbox (DBX -1.23%), a cloud-based content collaboration company best known for its file storage and sharing tools, released its second-quarter fiscal 2025 earnings on August 7, 2025. The most notable headline was a beat on both revenue and non-GAAP earnings per share, supported by significant margin gains. Revenue (GAAP) was $625.7 million, slightly higher than the $618.3 million analyst estimate (GAAP), though down 1.4% from last year's period (GAAP). Non-GAAP earnings per share landed at $0.71, well ahe ...

Group 1 - Dropbox reported quarterly earnings of $0.71 per share, exceeding the Zacks Consensus Estimate of $0.63 per share, and showing an increase from $0.60 per share a year ago, resulting in an earnings surprise of +12.70% [1] - The company achieved revenues of $625.7 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.28%, although this represents a decline from $634.5 million in the same quarter last year [2] - Dropbox has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance in earnings [2] Group 2 - The stock has underperformed the market, losing about 11.8% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The future performance of Dropbox's stock will largely depend on management's commentary during the earnings call and the subsequent revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $618.65 million, and for the current fiscal year, it is $2.61 on revenues of $2.48 billion [7] Group 3 - The Zacks Industry Rank places the Internet - Services sector in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]