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DBX expects fourth-quarter 2024 revenues between $637 million and $640 million. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $638.53 million, indicating year-over-year growth of 0.6%.
The consensus mark for earnings is pegged at 62 cents per share and has been unchanged over the past 30 days. The figure indicates a 24% increase from the year-ago quarter’s reported figure.
DBX’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the earnings surprise being 13.33%, on average.
Let us see how things have shaped up prior to the upcoming announcement.
Key Factors to Consider for DBX’s Q4 Earnings
Through Dropbox's ongoing efforts to refine core FSS offerings and prioritize user experience and retention, the company aims to address the evolving needs of users while solidifying Dropbox’s competitive edge in the cloud storage and collaboration market. These enhancements are expected to have contributed positively to the company's performance in the to-be-reported quarter.
DBX’s AI-powered flagship product, Dash, plays a key role in driving growth by addressing the needs of 1 billion knowledge workers dealing with information overload. With more than 500,000 business accounts, DBX is strategically positioned to expand Dash’s reach. The company expects Dash to boost ARPU, which is likely to have benefited its performance in the fourth quarter.
Dropbox's fourth-quarter 2024 performance is expected to have benefited from the projection of expanding operating margin, which is anticipated to be 36% compared with the previously mentioned 33.5-34%. This improved margin projection indicates enhanced operational efficiency and effective cost management, driving higher profitability for the quarter under review.
The company invested in its document workflow products, aiming to streamline processes and increase efficiency for users. By addressing common pain points in document management, Dropbox sought to enhance customer satisfaction and drive the adoption of its services. Progress in these areas is expected to have continued in the fourth quarter of 2024.
However, DBX is likely to have faced challenges in the fourth quarter due to near-term down-sell risks with some of its larger Teams accounts, coupled with seasonal pressures from FormSwift. These factors are expected to have affected the paying user count, resulting in a modest sequential drop in the overall paying user base in the quarter under review.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.
DBX currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Should You Buy or Hold Dropbox’s Stock?
The company's fourth-quarter 2024 earnings are expected to have benefited from a strong margin view and continued product expansion, which are likely to have driven profitability.
However, concerns over user growth and potential down-sell risks may impact Dropbox's future performance, making it a risky buy for investors.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this time around:
Image: Bigstock
Dropbox to Report Q4 Earnings: To Buy or Not to Buy the Stock?
Dropbox (DBX - Free Report) is scheduled to release fourth-quarter 2024 results on Feb. 20.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
DBX expects fourth-quarter 2024 revenues between $637 million and $640 million. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $638.53 million, indicating year-over-year growth of 0.6%.
The consensus mark for earnings is pegged at 62 cents per share and has been unchanged over the past 30 days. The figure indicates a 24% increase from the year-ago quarter’s reported figure.
Dropbox, Inc. Price and EPS Surprise
Dropbox, Inc. price-eps-surprise | Dropbox, Inc. Quote
DBX’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the earnings surprise being 13.33%, on average.
Let us see how things have shaped up prior to the upcoming announcement.
Key Factors to Consider for DBX’s Q4 Earnings
Through Dropbox's ongoing efforts to refine core FSS offerings and prioritize user experience and retention, the company aims to address the evolving needs of users while solidifying Dropbox’s competitive edge in the cloud storage and collaboration market. These enhancements are expected to have contributed positively to the company's performance in the to-be-reported quarter.
DBX’s AI-powered flagship product, Dash, plays a key role in driving growth by addressing the needs of 1 billion knowledge workers dealing with information overload. With more than 500,000 business accounts, DBX is strategically positioned to expand Dash’s reach. The company expects Dash to boost ARPU, which is likely to have benefited its performance in the fourth quarter.
Dropbox's fourth-quarter 2024 performance is expected to have benefited from the projection of expanding operating margin, which is anticipated to be 36% compared with the previously mentioned 33.5-34%. This improved margin projection indicates enhanced operational efficiency and effective cost management, driving higher profitability for the quarter under review.
The company invested in its document workflow products, aiming to streamline processes and increase efficiency for users. By addressing common pain points in document management, Dropbox sought to enhance customer satisfaction and drive the adoption of its services. Progress in these areas is expected to have continued in the fourth quarter of 2024.
However, DBX is likely to have faced challenges in the fourth quarter due to near-term down-sell risks with some of its larger Teams accounts, coupled with seasonal pressures from FormSwift. These factors are expected to have affected the paying user count, resulting in a modest sequential drop in the overall paying user base in the quarter under review.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.
DBX currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Should You Buy or Hold Dropbox’s Stock?
The company's fourth-quarter 2024 earnings are expected to have benefited from a strong margin view and continued product expansion, which are likely to have driven profitability.
However, concerns over user growth and potential down-sell risks may impact Dropbox's future performance, making it a risky buy for investors.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this time around:
Autohome (ATHM - Free Report) has an Earnings ESP of +7.27% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ATHM shares have gained 15.9% year to date. Autohome is set to report its fourth-quarter fiscal 2024 results on Feb. 20.
Opera Limited (OPRA - Free Report) presently has an Earnings ESP of +8.70% and a Zacks Rank #3.
Opera shares have returned 15.4% year to date. OPRA is set to report fourth-quarter 2024 results on Feb. 27.
Marvell Technology (MRVL - Free Report) currently has an Earnings ESP of +2.77% and a Zacks Rank #2.
MRVL shares have declined 3.6% year to date. Marvell Technology is set to report fourth-quarter fiscal 2025 results on March 05.