Dropbox Stock Soars 8% After Solid Q3 Earnings

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Dropbox

Dropbox Inc (NASDAQ: DBX)

Shares of Dropbox gained more than 8% in post-market trading hours on Thursday after third-quarter earnings and revenue of the file hosting service company smashed past Wall Street expectations.

The company will issue its outlook on its conference call and analysts are projecting fourth-quarter adjusted earnings of $0.06 per share on net sales of $363.7 million. DBX stock has lost nearly 21% in the past three months through Thursday’s close.



DBX Earnings

GAAP net loss for the 13-week period to September 30, 2018, was $5.8 million, or $0.01 per share, compared with net loss of $14.1 million, or $0.07 per share, in the third quarter of the previous year.

Excluding special items, the company earned $45 million, or $0.11 per share, up from adjusted earnings of $23.5 million, or $0.07 per share, in the same three months last year.

Net sales came to $360.3 million, up 26% from the comparable period a year earlier. Analysts were expecting adjusted earnings of $0.06 per share on net sales of $352.8 million, according to figures compiled by Refinitiv.

The number of paying customers was 12.3 million during the quarter, versus 10.4 million a year earlier. Average revenue per user (ARPU) was $118.60 as compared to $112.05 for the same period last year.

CEO Comments

“We delivered another quarter of strong execution in Q3, driving healthy top line growth and expanding free cash flow margins,” said Dropbox Co-founder and Chief Executive Officer Drew Houston. “We’re shipping product features and updates our users love, based on a deep understanding of our customers and the tools they need to do their best work. Combined with our ecosystem of best-in-class partners, Dropbox is becoming an even more central part of our customers’ workflows.”

Company Profile

Dropbox, Inc. is a collaboration platform that’s transforming the way people and teams work together. It offers following products: Dropbox Basic, Plus, Professional and Business. The Dropbox Basic is the simple, powerful home for photos, videos, docs, and other files.

Its users also get access to new product Dropbox Paper, a collaborative workspace that helps teams create and share early ideas, and work with any type of content, in one centralized place. The Dropbox Plus provides unrivalled sync along with 1 TB of space, powerful sharing features, and increased control. The Dropbox Professional allows independent workers to store, share, and track their work from one place.

The Dropbox Business is designed for small to enterprise level businesses, which users get full visibility and control over how critical work files are accessed and shared while letting team members continue to use the products. Dropbox was founded by Andrew W. Houston and Arash Ferdowsi in June 2007 and is headquartered in San Francisco, CA. – CNN Money

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