Overview
Dropbox Q3 revenue down 0.7% yr/yr but beats analyst expectations
Adjusted EPS for Q3 beats consensus, reflecting operational efficiency
Company highlights new AI assistant and search engine integration
Outlook
Company did not provide specific financial guidance in the press release
Result Drivers
OPERATIONAL EFFICIENCY - Dropbox exceeded revenue guidance and improved operating margins through efficiency measures
AI PRODUCT LAUNCH - Launch of self-serve version of Dash and AI integration received positive early customer feedback
COST REDUCTION - Increased operating margins partially due to decreased employee-related costs from reduced headcount
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $634.40 mln | $623.50 mln (10 Analysts) |
Q3 Adjusted EPS | Beat | $0.74 | $0.65 (10 Analysts) |
Q3 EPS | $0.47 | ||
Q3 Adjusted Net Income | Beat | $196.70 mln | $175.20 mln (8 Analysts) |
Q3 Net Income | $123.80 mln | ||
Q3 Gross Margin | 79.80% | ||
Q3 Adjusted EBIT Margin | 41.10% | ||
Q3 EBIT Margin | 27.50% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Dropbox Inc is $29.00, about 0.4% below its November 5 closing price of $29.13
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nBw8jB0bha
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)