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, 2023 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) Indicate by check mark whether the regi ...

Dropbox, Inc. (NASDAQ:DBX) 51st Annual J.P. Morgan Global Technology, Media and Communications Conference May 22, 2023 4:30 PM ET Company Participants Tim Regan - CFO Conference Call Participants Mark Murphy - J.P. Morgan Mark Murphy Okay. Good afternoon, everyone. I'm Mark Murphy, software analyst with JPMorgan. And it's a real pleasure to be here with Tim Regan, who is the CFO of Dropbox. So first of all, Tim, thank you for taking some time out of your schedule to be here with us. Tim Regan Terrific. Than ...

User Base and Revenue - Dropbox serves over 700 million registered users across approximately 180 countries[202] - The company has 17.90 million paying users as of March 31, 2023[203][232] - Total Annual Recurring Revenue (ARR) reached $2.468 billion as of March 31, 2023, up from $2.290 billion in March 2022[226] - Average Revenue Per User (ARPU) increased to $138.97 for Q1 2023, compared to $134.63 in Q1 2022[237] - Revenue grew by 8.7% to $611.1 million in Q1 2023, driven by an increase in paying users, the acquisition of FormSwift, and repricing of Dropbox plans[265] - Revenue is primarily generated from subscriptions to the platform, with 17.90 million paying users as of March 31, 2023, up from 8.81 million in December 2016[367] - Dropbox has paying users across approximately 180 countries, with approximately half of its revenue in 2022 generated from users outside the United States[369] Financial Performance - Free cash flow (FCF) increased to $138.0 million in Q1 2023, up from $130.7 million in Q1 2022, primarily due to a decrease in capital expenditures[242] - Gross profit increased by 10.0% to $494.3 million in Q1 2023, with gross margin improving to 81% from 80% in Q1 2022[266] - Net income decreased to $69.0 million in Q1 2023, down from $79.7 million in Q1 2022, primarily due to higher operating expenses and a provision for income taxes[261] - The company generated net income of $553.2 million and $335.8 million during the years ended December 31, 2022 and 2021, respectively[401] - The company had an accumulated deficit of $2,772.1 million as of March 31, 2023[401] - The company's revenue growth rate has declined and may continue to slow due to factors such as increased competition and slowing demand for its platform[400] Expenses and Costs - Cost of revenue rose by 3.5% to $116.8 million in Q1 2023, primarily due to increases in credit card fees, employee-related costs, and amortization of intangible assets[266] - Research and development expenses increased to $235.2 million in Q1 2023, up from $210.8 million in Q1 2022, driven by employee-related costs and stock-based compensation[261] - Sales and marketing expenses grew to $119.2 million in Q1 2023, compared to $95.7 million in Q1 2022, reflecting increased investment in user growth and brand awareness[261] - Research and development expenses increased by $24.4 million (11.6%) in Q1 2023 compared to Q1 2022, driven by $16.0 million in employee-related costs, $5.4 million in software licenses, and $3.0 million in overhead, partially offset by a $6.7 million reversal of stock-based compensation[268] - Sales and marketing expenses rose by $23.5 million (24.6%) in Q1 2023, primarily due to $15.3 million in advertising, $4.8 million in employee costs, $2.2 million in intangible asset amortization, and $1.0 million in app store fees[270] - General and administrative expenses increased by $2.3 million (4.3%) in Q1 2023, mainly from $4.8 million in employee costs, offset by a $3.9 million decrease in non-income taxes[271] - The company's research and development expenses may increase as it plans to hire more employees for engineering, product, and design teams[401] Cash Flow and Investments - The company had $332.7 million in cash and cash equivalents and $920.4 million in short-term investments as of March 31, 2023[275] - The company repurchased 8.1 million shares of Class A common stock for $176.5 million in Q1 2023, including a 1% excise tax under the Inflation Reduction Act[278] - Net cash provided by operating activities was $139.9 million in Q1 2023, driven by $69.0 million in net income, $76.0 million in stock-based compensation, and $42.5 million in depreciation and amortization[288] - Net cash provided by investing activities was $200.8 million in Q1 2023, primarily from $199.4 million in net investment inflows[291] - Net cash used in financing activities was $241.3 million in Q1 2023, including $175.4 million for share repurchases and $34.1 million for tax withholding on stock awards[293] - Cash and cash equivalents of $332.7 million and short-term investments of $920.4 million as of March 31, 2023[297] - A hypothetical 100 basis points increase in interest rates would reduce the market value of the investment portfolio by $13.0 million[299] Acquisitions and Strategic Moves - Dropbox acquired FormSwift in Q4 2022, contributing to ARR growth[224] - The company repackaged and increased prices for Dropbox Standard and Advanced plans, leading to higher ARR[224] - Dropbox acquired key assets from Boxcryptor in Q4 2022 to enhance data protection for paid customers and acquired FormSwift, a cloud-based service for business forms[381] - Dropbox's acquisitions may require significant management attention, incur debt, or dilute stockholder value, with potential integration challenges[382][386] Workforce and Operational Changes - Dropbox announced a 16% reduction in its global workforce on April 27, 2023, to streamline operations[220] - The company shifted to a Virtual First work model, resulting in cost savings in facilities and depreciation expenses[219] - The company operates under a Virtual First work model, which may impact productivity, employee retention, and operational efficiency[361][362] - The company recorded impairment charges related to unused office space due to the shift to a Virtual First model, impacting GAAP profitability[363] - The company's shift to a Virtual First work model may result in additional impairment charges or unanticipated expenses related to subleasing facilities[401] Market Competition and Risks - Pricing strategies are sensitive to competition, with some competitors offering lower-priced or free alternatives, potentially forcing the company to engage in price-cutting initiatives[335] - The company operates in a highly competitive market, facing competition from major players like Microsoft, Google, and Adobe, as well as smaller private companies offering point solutions[333] - The company faces risks from rapid technological changes and competition, requiring significant investments in AI-driven products and new features[349][351] - The content collaboration market is subject to rapidly changing user preferences, which could negatively impact demand for the platform[348] - The company may face challenges in scaling its business due to a limited outbound sales force, with over 90% of revenue generated from self-serve channels[365] - Sales to large organizations could lengthen sales cycles and increase deployment challenges, potentially impacting revenue growth[366] Cybersecurity and Data Protection - Unauthorized access to data or user content could result in significant liabilities, regulatory investigations, and reputational damage, potentially reducing revenue and increasing user acquisition costs[323] - The company faces ongoing and evolving cybersecurity threats, including malware, ransomware, and phishing attacks, which could compromise user data and harm its market position[325] - The company relies on third-party vendors and contractors for infrastructure, increasing exposure to security risks outside its direct control[327] - The company faces risks from third-party developers and partners who may fail to adopt adequate data security practices, potentially leading to unauthorized access to user data[328] International Operations and Compliance - Dropbox faces risks in international expansion, including compliance with laws, data protection, cybersecurity, and geopolitical conflicts[371][372] - Dropbox's international operations are subject to higher costs, including accounting, travel, infrastructure, and legal compliance[371] - 27% of sales were denominated in currencies other than U.S. dollars for the three months ended March 31, 2023[302] - Net foreign currency transaction gains of $0.8 million for the three months ended March 31, 2023[303] Legal and Regulatory Risks - A jury trial for a patent infringement case is scheduled for May 2023[312] - Dropbox's use of open source software may expose it to legal risks, including potential litigation and compliance with unfavorable licensing conditions[379] - The company's platform depends on interoperability with third-party devices, operating systems, and applications, which it does not control, posing risks to compatibility and functionality[339] - Service disruptions or loss of content on the platform could harm the company's brand, reputation, and ability to retain users[342] - Infrastructure capacity planning is critical, with overestimation leading to excess costs and underestimation risking service failures, compounded by global supply chain challenges[344] Debt and Financial Obligations - The company had an aggregate of $1,157.6 million in commitments to settle contractual obligations as of December 31, 2022[394] - The company may face challenges in servicing its 2026 Notes and 2028 Notes, which could require significant cash flow or alternative financing strategies[402] - The company's ability to refinance its indebtedness depends on capital market conditions and its financial condition at the time[402] - The company's leasing and credit obligations, if defaulted, could lead to operational interruptions and adverse effects on its financial condition[394][398] - The company's financial covenants include maintaining a consolidated leverage ratio incurrence covenant and a minimum liquidity balance[392] Product Development and Innovation - Dropbox launched new products in 2022, including Dropbox Replay for video workflows and Dropbox Capture for screen recordings and visual presentations[352] - Dropbox receives over 75 billion API calls per month and has nearly 1,000,000 developers registered on its platform as of December 31, 2022[377] - Dropbox's platform complexity may lead to defects or errors, potentially harming its reputation and financial condition[380] Economic and Geopolitical Risks - Economic downturns, inflation, and geopolitical issues could reduce discretionary spending by users, impacting the company's revenue and growth[330] - Dropbox relies on third-party datacenters, including Amazon Web Services, and any disruptions could harm user experience and increase costs[373][374]

Dropbox, Inc. (NASDAQ:DBX) Q1 2023 Earnings Conference Call May 4, 2023 5:00 PM ET Company Participants Karan Kapoor - Head of IR Drew Houston - Co Founder and CEO Tim Regan - CFO Conference Call Participants Richard Poland - RBC Capital Markets Mark Murphy - JPMorgan Steve Enders - Citi Matt Bullock - Bank of America Operator Good afternoon, ladies and gentlemen, and thank you for joining Drug Box's First Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is ...

Dropbox, Inc. (NASDAQ:DBX) The JMP Securities Technology Conference 2023 March 6, 2023 5:00 PM ET Company Representatives Tim Regan - Chief Financial Officer Conference Call Participants Joey Marincek - JMP Securities Joey Marincek …Software here at JMP. Really excited to have Dropbox present today. With me is CFO, Tim Regan, and we're really excited. How are you doing today, Tim? Tim Regan I'm doing all right, Joey. Thanks for having us. Question-and-Answer Session Q - Joey Marincek So we have a number of ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________to________ Dropbox, Inc. 1800 Owens Street San Francisco, California 94158 (Address of principal executive offices, including zip code) (4 ...

Dropbox, Inc. (NASDAQ:DBX) Q4 2022 Earnings Conference Call February 16, 2023 5:00 PM ET Company Participants Karan Kapoor - Head of Investor Relations Drew Houston - Co Founder and Chief Executive Officer Tim Regan - Chief Financial Officer Conference Call Participants Rishi Jaluria - RBC Capital Markets Michael Funk - Bank of America Steve Enders - Citigroup Joey Marincek - JMP Securities Luv Sodha - Jefferies Operator Good afternoon, ladies and gentlemen. Thank you for joining Dropbox' Fourth Quarter 20 ...

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 September 30, 2022 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) Delaware 26-0138832 (State or othe ...

Dropbox, Inc. (NASDAQ:DBX) Q3 2022 Results Conference Call November 3, 2022 5:00 PM ET Company Participants Karan Kapoor - Head of Investor Relations Drew Houston - Co Founder and Chief Executive Officer Tim Regan - Chief Financial Officer Conference Call Participants Rishi Jaluria - RBC Capital Markets Luv Sodha - Jefferies Steve Enders - Citi Joey Marincek - JMP Securities Matt Bullock - Bank of America Jacob Staffel - Goldman Sachs Operator Good afternoon, ladies and gentlemen. Thank you for joining Drop ...

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, 2022 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) Delaware 26-0138832 (State or other jur ...