The new features provide better value and promote customer retention and conversions in addition to higher engagement and lower churn. Dropbox rolled out new features including Dropbox Passwords, Vault and Backup along with the new Family Plan. Conference Call Takeawaysĭropbox Co-Founder and CEO, Andrew Houston, provided color on the quarter. The Company ended the quarter with $1.23 billion in cash and short-term investments. Free cash flow was $187 million versus $102.5 million YoY. Non-GAAP gross margins grew to 80% versus 76.7% YoY. Average revenue per user (ARPU) rose to $128.03 versus $123.15 YoY. Paid users rose to 15.25 million, up from 14 million YoY. The annual run rate (ARR) rose to $1.981 billion, up 12% year-over-year (YoY). Revenues grew 13.8% year-over-year (YoY) to $487.4 million beating analyst estimates for $483.64 million. The Company reported an earnings-per-share (EPS) profit of $0.26 excluding non-recurring items versus consensus analyst estimates for a profit of $0.19, a $0.07 beat.

5, 2020, Dropbox released its fiscal third-quarter 2020 results for the quarter ending September 2020. Prudent investors can watch for opportunistic pullback levels to consider gaining exposure.

The Company has much competition from giants like Google (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL) and Adobe (NASDAQ: ADBE), but has grown it’s brand which has enabled it to maintain and expand its market share beyond storage to integrated workflow collaboration.Ī deeper look into its Smart Workspace application reveals just how much Dropbox has evolved. The underlying business is remarkably stable and growing.ĭropbox has transformed from just storage to smart workspace applications that enables work collaboration, presentation, transfers, storage and syncing across all devices. While shares have seen volatility, they have been tracking the benchmark S&P 500 index (NYSE: SPY). The pandemic has accelerated the need for backing up data, further accelerated by high profile malware and hacking incidents. The Company has grown it’s registered user base to over 600 million worldwide spanning over 180 countries. Create New Watchlist Create Create a new holdings portfolio Add Create + Add another position CloseĬloud storage platform Dropbox (NASDAQ: DBX) stock has been elevated on takeover speculation that started in December 2020.

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