Dropbox Shares Move Higher as Company Beats on Revenue and Adjusted Earnings

Shares of drop file hosting service company Dropbox were soaring after the company posted its first quarter financial results.

For the quarter, the company beat on estimates for revenue and adjusted earnings. This marked the first quarterly profit for the company which debuted in 2018 on the NASDAQ. CEO Drew Houston had said in February that the company’s goal was to be profitable by the end of the year.

For the first quarter, Dropbox reported earnings per share of 17 cents adjusted and revenue of $455 million. Net income was $39.3 million, or 9 cents per share, according to a statement.

Analysts polled by Refinitiv had expected 14 cents in adjusted earnings per share on $452.2 million in revenue.
According to Dropbox, the coronavirus quarantines and the encouragement of remote work will help its business even as the lockdowns end.

“Certainly, a huge percentage of the world is being forced into a remote work state for the first time, but I think the effects of it will persist well beyond when we typically go back into the office,” CEO Houston said on the earnings call on Thursday.

Speaking of the company’s workers, Houston said on the earnings call, “I’m really proud of how quickly our employees have adapted to working effectively in this challenging environment. We continue to hold regular companywide town hall meetings across our global offices and productivity has remained high even as the vast majority of us have shifted to work remotely while reorienting our product road map to adapt to emerging customer demand. In addition, our infrastructure teams have been hard at work to ensure we continue to operate without any service interruptions or issues and are able to support higher utilization during this time. I want to thank the team for staying focused on serving our customers and to continuing to provide them with the tools they need to get work done.”

Dropbox also reported 14.6 million paying users at the end of the first quarter, in line with analysts’ expectations and up from 14.3 million one quarter ago.

Looking ahead, Dropbox expects $463 million to $466 million in second-quarter revenue. Analysts polled by
Refinitiv had expected $476.1 in revenue for the second quarter.

The company sees $1.88 billion to $1.90 billion in revenue for all of 2020, which is ahead of consensus analyst estimates of $1.88 billion.

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