Dropbox Shares Fall on COO Leaving Despite Earnings Beat

Dropbox initially saw gains of over 10% after announcing second quarter financial results that beat expectations.

Despite beating expectations, shares reversed after Wall Street digested that the company’s chief operating officer Dennis Woodside would be stepping down from the company.

For the second quarter, the company reported earnings of 11 cents a share, excluding certain items. Analysts had been expecting 6 cents a share. Revenue for the quarter was $339.2 million, versus the $330.9 million that analysts were expecting.

Looking ahead, the company also raised its outlook for the full year. Dropbox is now expecting $1.366 billion to $1.372 billion in revenue. Analysts had been expecting $1.357 billion in revenue.

On Woodside’s departure, Dropbox CEO Drew Houston said, “We’re grateful for everything Dennis has done for us. He’s helped transform Dropbox into a publicly-traded company with over $1 billion in annual revenue and 12 offices around the world. Dennis will always be part of the Dropbox family, and we wish him all the best.”

Disclaimer: We have no position in Dropbox Inc. (NASDAQ: DBX) and have not been compensated for this article.