We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Growth in Paying Users to Drive Dropbox's (DBX) Q2 Earnings
Read MoreHide Full Article
Dropbox (DBX - Free Report) is scheduled to report second-quarter 2020 results on Aug 6.
Solid momentum of Dropbox’s new Desktop App amid evolving workspace demand for seamless enterprise communication tools is expected to have contributed to the second-quarter top line.
Moreover, increasing popularity of the latest Dropbox platform is instilling confidence in the stock. Notably, shares of the company have returned 29.3% in the year-to-date period compared with the industry’s rally of 16.4%. The company currently carries a Zacks Rank #1 (Strong Buy).
Click here to know how the company’s overall Q2 performance is expected to be.
Paying User Growth: A Key Catalyst
Coronavirus crisis induced work-from-home wave has triggered demand for cloud storage. Dropbox has been striving to enhance its platform to aid users to access, store, synchronize and share files, photos, videos, songs and spreadsheets.
The company has been witnessing surge in user base of Plus subscription plan for individuals, driven by strength in Smart Sync, Dropbox Rewind, and Dropbox Transfer features.
Propensity toward web-based learning has led to higher utilization of Dropbox Paper among higher-education institutions and universities. Professors are finding it convenient to use Dropbox Paper to enhance educational content by making it more engaging, collaborative and accessible for students.
In medical field, robust uptake of HelloWorks — a fully customizable document workflow solution — in processing patient intake forms for instance, is likely to have benefited second-quarter performance.
Moreover, strong strategic focus on product innovation and introduction of new features like Dropbox Passwords, Dropbox Spaces, and integration of HelloSign functionality might have contributed to growth in paying users.
In first-quarter 2020, paying users totaled 14.6 million, up 10.6% year over year. Notably, the Zacks Consensus Estimate for paying users, for second quarter, currently stands at 14.74 million, indicating year-over-year growth of 8.4%.
Also, the company’s efforts to enable users utilize applications through multiple devices has been enhancing user experience. Further, integration with leading applications like Zoom Video (ZM - Free Report) , Slack and Atlassian (TEAM - Free Report) may have led to increasing utilization of the platform. These factors are likely to get reflected in growth of average revenue per paying user.
In first-quarter 2020, average revenue per paying user was $126.30, compared with $121.04 in prior-year quarter. The consensus mark for the same is currently pegged at $127, compared with $120.48 reported in year-ago quarter.
Nevertheless, increasing investments in product enhancements amid stiff competition from services like Microsoft One Drive, Google Drive and Citrix ShareFile may have weighed on margin expansion in the second quarter.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Growth in Paying Users to Drive Dropbox's (DBX) Q2 Earnings
Dropbox (DBX - Free Report) is scheduled to report second-quarter 2020 results on Aug 6.
Solid momentum of Dropbox’s new Desktop App amid evolving workspace demand for seamless enterprise communication tools is expected to have contributed to the second-quarter top line.
Moreover, increasing popularity of the latest Dropbox platform is instilling confidence in the stock. Notably, shares of the company have returned 29.3% in the year-to-date period compared with the industry’s rally of 16.4%. The company currently carries a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Click here to know how the company’s overall Q2 performance is expected to be.
Paying User Growth: A Key Catalyst
Coronavirus crisis induced work-from-home wave has triggered demand for cloud storage. Dropbox has been striving to enhance its platform to aid users to access, store, synchronize and share files, photos, videos, songs and spreadsheets.
The company has been witnessing surge in user base of Plus subscription plan for individuals, driven by strength in Smart Sync, Dropbox Rewind, and Dropbox Transfer features.
Propensity toward web-based learning has led to higher utilization of Dropbox Paper among higher-education institutions and universities. Professors are finding it convenient to use Dropbox Paper to enhance educational content by making it more engaging, collaborative and accessible for students.
In medical field, robust uptake of HelloWorks — a fully customizable document workflow solution — in processing patient intake forms for instance, is likely to have benefited second-quarter performance.
Moreover, strong strategic focus on product innovation and introduction of new features like Dropbox Passwords, Dropbox Spaces, and integration of HelloSign functionality might have contributed to growth in paying users.
In first-quarter 2020, paying users totaled 14.6 million, up 10.6% year over year. Notably, the Zacks Consensus Estimate for paying users, for second quarter, currently stands at 14.74 million, indicating year-over-year growth of 8.4%.
Dropbox, Inc. Revenue (Quarterly)
Dropbox, Inc. revenue-quarterly | Dropbox, Inc. Quote
Also, the company’s efforts to enable users utilize applications through multiple devices has been enhancing user experience. Further, integration with leading applications like Zoom Video (ZM - Free Report) , Slack and Atlassian (TEAM - Free Report) may have led to increasing utilization of the platform. These factors are likely to get reflected in growth of average revenue per paying user.
In first-quarter 2020, average revenue per paying user was $126.30, compared with $121.04 in prior-year quarter. The consensus mark for the same is currently pegged at $127, compared with $120.48 reported in year-ago quarter.
Nevertheless, increasing investments in product enhancements amid stiff competition from services like Microsoft One Drive, Google Drive and Citrix ShareFile may have weighed on margin expansion in the second quarter.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>