Dropbox Q2 revenue slightly beats estimates on workforce reduction expenses
DBX•Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Slight Beat* | $631.50 mln | $626.73 mln (7 Analysts) |
| Q2 Adjusted EPS | Beat | $0.75 | $0.74 (7 Analysts) |
| Q2 EPS | $0.42 | ||
| Q2 Adjusted Net Income | Beat | $170 mln | $167.39 mln (6 Analysts) |
| Q2 Net Income | $95.80 mln | ||
| Q2 Gross Margin | 80.20% | ||
| Q2 Adjusted EBIT Margin | 39.70% | ||
| Q2 EBIT Margin | 26.10% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Drivers of the quarter
Revenue growth was driven by continued momentum in its core business, excluding FormSwift.
Paying users increased by 96,000 quarter-over-quarter, marking the third consecutive quarter of growth.
The company incurred expenses related to a workforce reduction as part of a strategic reorganization to unify its product organization.
Analyst coverage and valuation
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "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 $28.00, about 20% below its August 5 closing price of $35.00.
