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.
Dropbox (DBX) Q1 Earnings Beat Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Dropbox (DBX - Free Report) reported first-quarter 2024 non-GAAP earnings of 58 cents per share, beating the Zacks Consensus Estimate by 18.37% and increasing 38.1% year over year.
Revenues of $631.3 million increased 3.3% year over year and beat the consensus mark by 0.40%.
Total annual recurring revenues came in at $2.556 billion, up 3.6% year over year.
Quarter Details
Dropbox exited the first quarter of 2024 with 18.16 million paying users, marking a sequential growth of roughly 35,000. The average revenue per paying user was $139.59 compared with $138.97 in the year-ago quarter.
As of Mar 31, 2024, Dropbox had roughly 575K business teams, and 34% of paying users were business teams.
In the first quarter, Dropbox reported a non-GAAP gross margin of 84.6%, up 220 basis points (bps) year over year.
In the reported quarter, research and development expenses were $160.7 million, down 9.2% year over year.
Sales & marketing expenses decreased 7.4% year over year to $100.6 million.
General & administrative expenses fell 3.5% year over year to $41.8 million.
Dropbox reported a non-GAAP operating margin of 36.5%, up 800 bps year over year.
Balance Sheet & Cash Flow
As of Mar 31, 2024, Dropbox had cash, cash equivalents and short-term investments of $1.18 billion compared with $1.36 billion as of Dec 31, 2023.
In the first quarter, the company reported a free cash flow of $166.3 million as compared with $190.3 million reported in the previous quarter.
Guidance
For the second quarter of 2024, Dropbox expects revenues between $628 million and $631 million. Non-GAAP operating margin is expected to be roughly 33%.
For 2024, it expects revenues between $2.535 billion and $2.55 billion. At constant currency, revenues are expected between $2.532 billion and $2.547 billion.
The company expects gross margin to be in the 83-83.5% range for the full year. Non-GAAP operating margin is expected in the 32.5-33% range.
Dropbox expects free cash flow between $910 million and $950 million.
Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy).
DBX shares have declined 21.5% year to date, underperforming the Zacks Computer & Technology sector’s growth of 12%.
Image: Bigstock
Dropbox (DBX) Q1 Earnings Beat Estimates, Revenues Up Y/Y
Dropbox (DBX - Free Report) reported first-quarter 2024 non-GAAP earnings of 58 cents per share, beating the Zacks Consensus Estimate by 18.37% and increasing 38.1% year over year.
Revenues of $631.3 million increased 3.3% year over year and beat the consensus mark by 0.40%.
Total annual recurring revenues came in at $2.556 billion, up 3.6% year over year.
Quarter Details
Dropbox exited the first quarter of 2024 with 18.16 million paying users, marking a sequential growth of roughly 35,000. The average revenue per paying user was $139.59 compared with $138.97 in the year-ago quarter.
As of Mar 31, 2024, Dropbox had roughly 575K business teams, and 34% of paying users were business teams.
In the first quarter, Dropbox reported a non-GAAP gross margin of 84.6%, up 220 basis points (bps) year over year.
Dropbox, Inc. Price, Consensus and EPS Surprise
Dropbox, Inc. price-consensus-eps-surprise-chart | Dropbox, Inc. Quote
In the reported quarter, research and development expenses were $160.7 million, down 9.2% year over year.
Sales & marketing expenses decreased 7.4% year over year to $100.6 million.
General & administrative expenses fell 3.5% year over year to $41.8 million.
Dropbox reported a non-GAAP operating margin of 36.5%, up 800 bps year over year.
Balance Sheet & Cash Flow
As of Mar 31, 2024, Dropbox had cash, cash equivalents and short-term investments of $1.18 billion compared with $1.36 billion as of Dec 31, 2023.
In the first quarter, the company reported a free cash flow of $166.3 million as compared with $190.3 million reported in the previous quarter.
Guidance
For the second quarter of 2024, Dropbox expects revenues between $628 million and $631 million. Non-GAAP operating margin is expected to be roughly 33%.
For 2024, it expects revenues between $2.535 billion and $2.55 billion. At constant currency, revenues are expected between $2.532 billion and $2.547 billion.
The company expects gross margin to be in the 83-83.5% range for the full year. Non-GAAP operating margin is expected in the 32.5-33% range.
Dropbox expects free cash flow between $910 million and $950 million.
Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy).
DBX shares have declined 21.5% year to date, underperforming the Zacks Computer & Technology sector’s growth of 12%.
Nutanix (NTNX - Free Report) , NetApp (NTAP - Free Report) and NVIDIA (NVDA - Free Report) are some other top-ranked stocks that investors can consider in the broader sector. While Nutanix sports Zacks Rank #1 (Strong Buy) at present, NetApp and NVIDIA carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutanix shares have gained 41.7% in the year-to-date period. NTNX is set to report its third-quarter fiscal 2024 results on May 29.
NetApp shares have gained 22.7% year to date. NTAP is set to report its fourth-quarter fiscal 2024 results on May 30.
NVIDIA shares have gained 79.2% year to date. NVDA is set to report its first-quarter fiscal 2025 results on May 22.