Dropbox, the file hosting service company that listed on the Nasdaq earlier this year, will get a chance to give wary investors some much-needed inspiration with third-quarter earnings on Thursday, November 8.
Wall Street projects the company will come out with earnings of 6 cents per share on net sales of $352.18 million for the 13-week period ended September 30, 2018.
When the company reports after the closing bell, investors will be keeping a keen eye on its average revenue per user (ARPU) growth, customer trends, and forex impact to understand the direction of the stock.
Shares of Dropbox fell more than 7 percent in the extended trading session on August 9 in spite of the company reporting higher than expected second-quarter earnings and a 27% revenue growth.The San Francisco-based company had even grown its base of paying users and earned more from each of them than analysts had estimated.
At the end of the quarter, Dropbox had 11.9 million paying users, a 20% increase from the same three months last year. Analysts had estimated the San Francisco based firm would have 11.7 million paying customers. Average revenue per user was $116.66 compared with $111.99 in the second of the previous year.
The selloff was triggered by the previous day’s news that Chief Operating Officer Dennis Woodside was leaving the company. Woodside finally stepped down from the company in September after having worked there for 4 years. However, he will continue to serve as an adviser to the company until the end of the year.
If the company smashes through expectations and issues a rosy guidance, it is bound to excite investors and push the stock for the top.
Dropbox, Inc 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