Group 1: Dream Finders Homes, Inc. (DFH) - Dream Finders Homes is a holding company for Dream Finders Homes LLC and has a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 4% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 8.39, compared to the industry average of 10.70, and possesses a Value Score of B [1] Group 2: Victory Capital Holdings, Inc. (VCTR) - Victory Capital Holdings is an asset management company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 1.5% over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 11.90, compared to the industry average of 15.10, and possesses a Value Score of B [2] Group 3: Dropbox, Inc. (DBX) - Dropbox is a content collaboration platform provider and carries a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 1.8% over the last 60 days [3] - The company has a price-to-earnings ratio (P/E) of 11.96, compared to the industry average of 49.90, and possesses a Value Score of B [3]

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[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited condensed consolidated financial statements for Q3 2024, including balance sheets, operations, cash flows, and key accounting notes [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details Dropbox's Q3 2024 and YTD 2024 consolidated statements of operations, highlighting revenue, gross profit, and net income Q3 2024 vs Q3 2023 Performance (Three Months Ended Sep 30) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | **Revenue** | $638.8M | $633.0M | | **Gross Profit** | $527.3M | $513.4M | | **Income from Operations** | $127.8M | $130.7M | | **Net Income** | $106.7M | $114.1M | | **Diluted EPS** | $0.34 | $0.33 | YTD 2024 vs YTD 2023 Performance (Nine Months Ended Sep 30) | Metric | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | | **Revenue** | $1,904.6M | $1,866.6M | | **Gross Profit** | $1,580.3M | $1,510.1M | | **Income from Operations** | $398.3M | $271.3M | | **Net Income** | $349.5M | $226.3M | | **Diluted EPS** | $1.07 | $0.65 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents Dropbox's balance sheets as of Sep 30, 2024, showing total assets decreased to **$2.58 billion** and stockholders' deficit increased Balance Sheet Summary (in millions) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $517.6 | $614.9 | | Short-term investments | $373.2 | $741.1 | | **Total Assets** | **$2,576.7** | **$2,983.5** | | **Total Liabilities** | **$3,122.8** | **$3,149.3** | | **Total stockholders' deficit** | **($546.1)** | **($165.8)** | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash flow activities for the nine months ended Sep 30, 2024, noting increased operating cash flow, significant financing outflows, and a net cash decrease Cash Flow Summary (Nine Months Ended Sep 30, in millions) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $680.3 | $583.4 | | **Net cash provided by investing activities** | $330.0 | $417.2 | | **Net cash used in financing activities** | ($1,110.5) | ($627.2) | | *Common stock repurchases* | *($888.3)* | *($433.7)* | | **Change in cash and cash equivalents** | ($97.3) | $371.5 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes on accounting policies, including asset useful lives, the Reclaim.ai acquisition, debt, and a subsequent workforce reduction - Effective January 1, 2024, the company changed the estimated useful lives of certain infrastructure server assets from four to five years, which reduced depreciation expense by **$26.3 million** for the nine months ended September 30, 2024[36](index=36&type=chunk) - On July 26, 2024, the company acquired Reclaim.ai Inc., an AI-powered calendar application, for **$40.2 million** in cash, resulting in **$30.6 million** of goodwill[112](index=112&type=chunk) - As of September 30, 2024, the company had **$1.38 billion** in convertible senior notes outstanding, split between notes due in 2026 and 2028[135](index=135&type=chunk) - Subsequent to the quarter's end, on October 30, 2024, Dropbox announced a **20%** reduction of its global workforce, estimating total cash expenditures of approximately **$63 million to $68 million** for severance and related costs[200](index=200&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2024 performance, highlighting revenue growth, ARR, free cash flow, and a subsequent **20%** workforce reduction Key Business Metrics | Metric | Sep 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | | **Total ARR** | $2,579M | $2,525M | | **Paying Users** | 18.24M | 18.17M | | **ARPU (Q3)** | $139.05 | $138.71 | - The company serves over **700 million+** registered users across approximately 180 countries, with **18.24 million** paying users as of Q3 2024[204](index=204&type=chunk)[205](index=205&type=chunk) - In October 2024, the company announced a **20%** reduction in its global workforce to streamline its structure and align with long-term growth and profitability goals[225](index=225&type=chunk) - Free cash flow for the nine months ended September 30, 2024, was **$661.1 million**, up from **$569.1 million** in the prior-year period[246](index=246&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) Compares Q3 2024 to Q3 2023 results, detailing revenue changes, cost of revenue decreases, and impacts on gross margin and operating expenses - Q3 2024 revenue increased **0.9%** YoY, driven by a rise in paying users and a favorable mix of higher-priced and monthly subscription plans[273](index=273&type=chunk) - Q3 2024 cost of revenue decreased by **6.8%** YoY, mainly due to a **$7.1 million** reduction in infrastructure costs resulting from the change in the useful life estimate for certain assets[274](index=274&type=chunk) - For the nine months ended Sep 30, 2024, R&D expenses decreased by **$42.5 million (5.9%)** YoY, primarily due to lower employee-related costs and allocated overhead[285](index=285&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) Details Dropbox's liquidity, including cash, investments, stock repurchases, and available credit facility, as of September 30, 2024 - The company repurchased and retired **37.0 million** shares of its Class A common stock for an aggregate amount of **$895.6 million** during the nine months ended September 30, 2024[295](index=295&type=chunk)[307](index=307&type=chunk) - The company has a **$500.0 million** revolving credit facility, which terminates in February 2026, with **$469.5 million** available as of September 30, 2024[296](index=296&type=chunk)[298](index=298&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discusses market risks, primarily interest rate risk affecting investments and foreign currency exchange risk from non-USD denominated sales - A hypothetical **100 basis point** increase in interest rates would result in a **$4.1 million** reduction in the market value of the company's investment portfolio as of September 30, 2024[313](index=313&type=chunk) - During the nine months ended September 30, 2024, **26%** of the company's sales were denominated in currencies other than the U.S. dollar, exposing it to foreign currency exchange risk[313](index=313&type=chunk) [Item 4. Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of Sep 30, 2024, with no material changes to internal control over financial reporting - Management concluded that as of September 30, 2024, the company's disclosure controls and procedures were effective at a reasonable assurance level[316](index=316&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the third quarter of 2024[317](index=317&type=chunk) [PART II. OTHER INFORMATION](index=60&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) Details the patent infringement litigation with Motion Offense, LLC, including the jury verdict in favor of Dropbox and subsequent post-trial motions - In the patent infringement suit brought by Motion Offense, LLC, a jury found in favor of Dropbox in May 2023, and the court entered a judgment consistent with the verdict in August 2024, though Motion Offense has since filed post-trial motions for a new trial[322](index=322&type=chunk) [Item 1A. Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) Outlines significant risks including user retention, data security, competition, technological changes, macroeconomic conditions, and concentrated voting control - The business depends on its ability to retain and upgrade paying users, and any decline in renewals could adversely affect future results[328](index=328&type=chunk) - The company has experienced and may continue to experience privacy and data security breaches, referencing the unauthorized access to the Dropbox Sign production environment in April 2024[338](index=338&type=chunk) - The company operates in highly competitive markets against major players like Microsoft, Amazon, Apple, Google, and Adobe, who may have greater resources and competitive advantages[353](index=353&type=chunk) - The multi-class stock structure concentrates **77.2%** of voting power with directors, executive officers, and their affiliates as of September 30, 2024, limiting the influence of other stockholders[487](index=487&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=92&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Q3 2024 stock repurchase activities, including shares repurchased and the remaining amount available under the program Q3 2024 Share Repurchases | Period | Total Shares Purchased (millions) | Average Price Paid per Share | | :--- | :--- | :--- | | July 1 - 31 | 1.55 | $22.74 | | August 1 - 31 | 6.65 | $23.60 | | September 1 - 30 | 6.45 | $24.41 | | **Total** | **14.65** | **$23.86** | - As of September 30, 2024, approximately **$519.53 million** remained available for purchase under the company's stock repurchase programs[524](index=524&type=chunk) [Item 5. Other Information](index=92&type=section&id=Item%205.%20Other%20Information) Discloses that a board member adopted a Rule 10b5-1 trading plan for the potential sale of Class A common stock during the quarter - On August 22, 2024, board member Lisa Campbell adopted a Rule 10b5-1 trading plan for the sale of up to **11,388** shares of Class A common stock, effective until May 30, 2025[526](index=526&type=chunk) [Item 6. Exhibits](index=92&type=section&id=Item%206.%20Exhibits) States that required exhibits, including CEO/CFO certifications and Inline XBRL financial statements, are listed in the Exhibit Index

Core Insights - Dropbox (DBX) reported Q3 2024 non-GAAP earnings of 60 cents per share, exceeding the Zacks Consensus Estimate by 15.38% and reflecting a 7.1% year-over-year increase [1] - Revenues reached $638.8 million, a 0.9% year-over-year increase, also surpassing the consensus mark by 0.29% [2] - The company has provided positive guidance for 2024, expecting improvements in gross and operating margins despite a challenging competitive landscape [4] Financial Performance - DBX's paid user base grew to 18.24 million, with an average revenue per paying user of $139.05, up from $138.71 in the previous year [5] - Non-GAAP gross margin for Q3 was reported at 84%, an increase of 140 basis points year-over-year, while the non-GAAP operating margin was 36.2%, up 30 basis points [8] - Free cash flow for the third quarter was $270.1 million, an increase from $224.7 million in the previous quarter [9] Market Position - Dropbox holds a 20.9% market share in the content sharing and collaboration applications category, leading over competitors like Alphabet (16.4%) and Box (8.8%) [6][7] - The company supports over 700 million registered users and is positioned favorably against major competitors [6] Guidance and Expectations - For Q4 2024, Dropbox expects revenues between $635 million and $638 million, with a non-GAAP operating margin around 32% [11] - Full-year 2024 revenue guidance is set between $2.542 billion and $2.545 billion, with an expected gross margin of 84% and a non-GAAP operating margin of approximately 36% [12] - The company anticipates free cash flow between $860 million and $875 million, revised down from previous estimates [13]

Dropbox, Inc. (NASDAQ:DBX) Q3 2024 Earnings Conference Call November 7, 2024 5:00 PM ET Company Participants Peter Stabler - Head, Investor Relations Drew Houston - Co-Founder & Chief Executive Officer Tim Regan - Chief Financial Officer Conference Call Participants Luv Sodha - Jefferies Rishi Jaluria - RBC Capital Markets Josefina Ruggieri - JPMorgan Operator Good afternoon, ladies and gentlemen, thank you for joining Dropbox Third Quarter 2024 Earnings Conference Call. All participants will be in listen-o ...

Dropbox (DBX) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.56 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 15.38%. A quarter ago, it was expected that this online file-sharing company would post earnings of $0.52 per share when it actually produced earnings of $0.60, delivering a surprise of 15.38%. Over the last four quarters, ...

移 Dropbox 1 Financial Results & Investor Presentation Q3 2024 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 cann ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 October 30, 2024 Date of Report (date of earliest event reported) DROPBOX, INC. (Exact name of Registrant as specified in its charter) Delaware 001-38434 26-0138832 (State or other jurisdiction of incorporation) (Commission File Number) (I. R. S. Employer Identification No.) 1800 Owens St. San Francisco, California 94158 (Address of principal ...

Drew Houston, Dropbox Co-Founder and CEO, speaking at CNBC's @Work conference in San Francisco on November 4, 2019. Dropbox is laying off 20% of its global workforce, the equivalent of 528 roles, CEO Drew Houston announced Wednesday in a note to staff. The company is in a "transitional period" as its file sync and share business and its Dash artificial-intelligence search feature mature, Houston wrote. "Navigating this transition while maintaining our current structure and investment levels is no longer sus ...