SAN FRANCISCO--(BUSINESS WIRE)--Today, Dropbox, Inc. (NASDAQ: DBX) and McLaren Racing announced a multi-year partnership with the McLaren Formula 1 Team for the 2024 season and beyond. The partnership marks Dropbox’s first entry into the sport, helping the McLaren team collaborate, share files and content, and save time. Through the partnership, McLaren will rely on Dropbox for its fast, secure, and reliable syncing and sharing capabilities, in addition to its latest offerings in video collaboration and ma ...

Pitch Deck Interest metrics post gains in investor engagement after six quarters of consistent decline SAN FRANCISCO, Jan. 17, 2024 /PRNewswire/ -- DocSend, a secure document sharing platform and Dropbox (NASDAQ: DBX) company, released a new data analysis of startup fundraising showing positive momentum for the first time in six quarters, based on investor engagement with pitch decks. The Pitch Deck Interest (PDI) metrics prompt hope for increased dealmaking in Q1, due to encouraging year-over-year (YoY) in ...

Every day for the next three weeks, we're going to highlight one of Schaeffer's top 12 picks for 2024. First up, we have software stock Dropbox Inc (NASDAQ:DBX). To access the entirety of the 2023 report, click here.Software stock Dropbox (DBX) is knocking at the $10 billion valuation plateau around $29 for the sixth time in the last six months. The company -- which has begun collaborating with semiconductor stalwart NVIDIA (NVDA) -- reported a top-line beat for the third quarter that also included an upwar ...

Dropbox, Inc. (NASDAQ:DBX) Q3 2023 Earnings Call Transcript November 2, 2023 5:00 PM ET Company Participants Karan Kapoor - Head of Investor Relations Tim Regan - Chief Financial Officer Conference Call Participants Matt Bullock - Bank of America Sonak Kolar - JPMorgan Steve Enders - Citi Richard Poland - RBC Capital Markets Eylon Liani - Jefferies Pat Walravens - JMP Securities Operator Good afternoon, ladies and gentlemen, thank you for joining Dropbox's Third Quarter 2023 Earnings Conference Call. All pa ...

A video collaboration tool that makes it easier to collect, manage, and respond to feedback, all in one place DocSend A video and presentation sharing platform with advanced analytics to see what your visitors are really watching & Dropbox 12 Shared team workspace Data governance and audit logs & Dropbox 13 Dropbox Business Teams Expansion Simplified team collaboration invites for shared content | --- | --- | --- | --- | --- | --- | |-------|------------------------------------------------------------------ ...

User Base and Growth - Dropbox serves over 700 million registered users across approximately 180 countries, with 18.17 million paying users as of September 30, 2023[203][204]. - The company has seen an increase in Total ARR due to a price increase for existing users and a higher mix of sales from premium subscription plans[226]. - As of September 30, 2023, the number of paying users increased to 18.17 million from 17.77 million as of December 31, 2022, and 17.55 million as of September 30, 2022[234]. - The growth rates of paying and registered users have declined, potentially impacting future revenue growth[340]. - The number of paying users has increased from 8.81 million as of December 31, 2016, to 18.17 million as of September 30, 2023[382]. Financial Performance - Total annual recurring revenue (Total ARR) increased to $2.525 billion as of September 30, 2023, compared to $2.514 billion at the end of 2022 and $2.431 billion at the end of September 2022[228]. - Revenue for the three months ended September 30, 2023, was $633.0 million, an increase from $591.0 million in the same period of 2022, and for the nine months ended September 30, 2023, revenue was $1,866.6 million compared to $1,726.1 million in 2022[262]. - Net income for the three months ended September 30, 2023, was $114.1 million, up from $83.2 million in the same period of 2022, and for the nine months ended September 30, 2023, net income was $226.3 million compared to $224.9 million in 2022[262]. - Free cash flow (FCF) for the nine months ended September 30, 2023, was $569.1 million, a decrease from $581.8 million in the same period of 2022, primarily due to workforce reduction payments[244]. - Average revenue per paying user (ARPU) for the three months ended September 30, 2023, was $138.71, up from $134.31 in the same period of 2022, and for the nine months ended September 30, 2023, it was $140.63 compared to $134.41 in 2022[239]. Expenses and Investments - Operating expenses for the three months ended September 30, 2023, totaled $382.7 million, a decrease from $392.0 million in the same period of 2022, and for the nine months ended September 30, 2023, operating expenses were $1,238.8 million compared to $1,136.0 million in 2022[262]. - The company plans to continue investing in research and development, with expectations for costs to decrease in the near term but increase in the long term as growth initiatives are pursued[254]. - Research and development expenses for the nine months ended September 30, 2023, increased by $61.0 million or 9.3% to $714.4 million compared to $653.4 million in the same period of 2022[281]. - Sales and marketing expenses for the nine months ended September 30, 2023, increased by $42.1 million or 13.8% to $346.4 million compared to $304.3 million in the same period of 2022[283]. Macroeconomic Impact - The impact of macroeconomic factors, including rising interest rates and market volatility, has affected customer behavior and performance in Teams plans and other services[215][216]. - Economic conditions, including inflation and geopolitical issues, could negatively affect consumer spending on the company's platform, potentially leading to reduced revenue[347]. - A hypothetical increase in interest rates by 100 basis points would have resulted in an $8.4 million reduction in the market value of the company's investment portfolio[315]. Security and Compliance Risks - The company faces significant risks from unauthorized access to its data and user content, which could lead to financial liabilities and reputational damage[341]. - Security threats from malicious third parties are expected to grow in complexity, impacting the company's ability to protect user data and maintain trust[342]. - The company has implemented systems and processes to enhance cybersecurity, but past incidents indicate that these measures may not fully prevent future breaches[343]. - The company faces challenges in maintaining compliance with international laws and regulations, which could increase operational costs[390]. Strategic Challenges - The competitive landscape for content collaboration platforms is intensifying, with major competitors like Microsoft and Google posing significant challenges[349]. - The demand for the company's platform is sensitive to pricing strategies, influenced by competitors offering lower-priced or free alternatives[351]. - The company must ensure interoperability across various devices and third-party applications, which is critical for maintaining user engagement and satisfaction[354]. - The company relies on third-party vendors for infrastructure, which exposes it to additional security risks and potential data breaches[344]. Future Outlook - The company expects free cash flow to generally increase in future periods as subscription sales grow and operating efficiencies are driven[243]. - The company anticipates that trends towards remote work will create market opportunities, but these may not materialize as expected[367]. - The ability to forecast future results is subject to uncertainties, including the effectiveness of planning for growth[371].

Financial Data and Key Metrics Changes - Total revenue in Q2 increased 8.7% year-over-year to $622 million, beating guidance of $612 million to $615 million [76] - Operating margin was approximately 34%, up roughly 200 basis points year-over-year, exceeding guidance by over 250 basis points [79] - Net income for Q2 was $174 million, up 26% versus the second quarter of 2022, with diluted EPS at $0.51 per share [80] Business Line Data and Key Metrics Changes - Total ARR for the quarter grew 7.2% year-over-year to $2.5 billion, with constant currency ARR growth at 10.9% [44] - Average revenue per paying user (ARPU) for Q2 was $138.94, flat compared to Q1 2023, but up over $5 year-over-year [45] - FormSwift outperformed expectations for the second consecutive quarter, driven by improved retention and increased account creation [73] Market Data and Key Metrics Changes - The company exited the quarter with 18 million paying users, adding approximately 140,000 net new paying users sequentially [77] - The macro environment remains challenging, particularly impacting Teams customers, while individual plans showed some improvement in retention [124][142] Company Strategy and Development Direction - The company is focused on building AI-powered product experiences, with initiatives like Dropbox Dash aimed at improving knowledge work [22][30] - There is a commitment to evolving the existing Dropbox file sync and share user experience to better address customer workflows around documents and videos [35] - The company plans to invest in AI talent and early-stage product development, leveraging savings from recent workforce reductions [126] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant headwinds from macroeconomic factors but remains focused on achieving long-term targets, including $1 billion in annual free cash flow by 2024 [10][54] - The company is maintaining its free cash flow guidance of $820 million to $840 million, despite raising revenue and operating margin guidance [85] - Management expressed optimism about the early engagement with new AI features and the potential for improved customer productivity [66] Other Important Information - The company has authorized an additional $1.2 billion share repurchase program, bringing total capacity to approximately $1.6 billion [86] - Cash flow from operations was $188 million in Q2, down from $210 million in the same quarter of 2022, primarily due to severance payments [48] Q&A Session Summary Question: Can you elaborate on the strategy around Dash and its use cases? - Management highlighted Dash as an AI-powered universal search product that connects various cloud tools, addressing the common pain point of scattered information across multiple platforms [63][115] Question: What is the monetization strategy for generative AI features? - The company plans to offer a portfolio of AI applications, with some features available only in higher-tier plans and others as explicit add-ons [94][121] Question: How is the company addressing churn and retention? - Management noted improvements in churn rates for individual plans due to product enhancements and better user experience, while Teams customers continue to face challenges [68][142]

Shared team workspace Data governance and audit logs Advanced security alerts & notifications Non-GAAP reconciliation Twelve Months Ended Note: % are rounded for presentation purposes Note: % are rounded for presentation purposes *Vault is only available in Plus, Family, and Professional. Size of Dropbox Transfer varies based on Dropbox plan: Basic (100MB), Plus, Family, & Standard (2GB), Professional, Advanced, and Enterprise (100GB). Professional, Advanced, and Enterprise plans also receive advanced Trans ...

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 ...

Summary of Dropbox, Inc. Conference Call Company Overview - **Company**: Dropbox, Inc. (NASDAQ: DBX) - **Annual Conference**: 51st Annual J.P. Morgan Global Technology, Media and Communications Conference - **Date**: May 22, 2023 - **Key Metrics**: - Annual Recurring Revenue (ARR): $2.5 billion - Registered Users: 700 million - Content Stored: Over 800 billion pieces [3][5][29] Core Business and Strategy - **Business Model**: Primarily focused on file sync and share, which remains the majority of revenue but is diversifying into other areas [5][9] - **Recent Acquisitions**: - **HelloSign** (2019): Rebranded to Dropbox Sign, an e-signature product [5] - **DocSend** (2021): A secure sharing and analytics platform [6] - **FormSwift** (Q4 2022): A templates company that offers a library of forms [6][41] - **Product Development**: Introduction of new products like Capture (screen sharing and video creation) and Replay (video editing tool) [7] Market Conditions and Performance - **Macro Environment**: Consistent with previous quarters, with heightened price sensitivity noted among team users, particularly in tech companies experiencing layoffs [9][10] - **User Trends**: - Individual sign-ups improved year-over-year due to enhancements in onboarding processes [10][14] - E-signature demand has decreased post-pandemic [11] - **ARR Growth**: Grew approximately 12% in constant currency in Q1, attributed to pricing changes and acquisitions [12][15] Financial Metrics - **Paid User Growth**: 120,000 new paid users in Q1, down from previous years' higher numbers [37] - **Cost Management**: Implemented a 16% reduction in workforce to improve efficiency and redirect resources towards AI and cloud organization initiatives [20][23] - **Pricing Strategy**: A 20% price increase on team plans was implemented in June 2022, which initially performed well but faced challenges due to economic conditions [55][56] AI and Future Initiatives - **AI Development**: Working on an AI-driven search product to enhance user experience by organizing cloud content and providing personalized search capabilities [25][26][32] - **Customer Trust**: Emphasizes the importance of customer trust and data privacy as a competitive advantage [34][36] - **Future Monetization**: Plans to potentially offer AI features as a standalone product while focusing on customer adoption first [30][32] Conclusion - **Strategic Focus**: Dropbox is positioning itself to leverage its existing user base and content while expanding its product offerings through acquisitions and new developments, particularly in AI and cloud organization [23][35] - **Growth Potential**: The company aims to enhance customer awareness of its diverse product suite to drive future growth in both paid users and ARR [52][53]