Categories Earnings, Technology
Dropbox (DBX) Q4 results beat estimates on subscriber growth; stock climbs
Dropbox, Inc. (NASDAQ: DBX) has maintained stable subscription growth in recent quarters, despite an increase in prices. Maintaining the uptrend, the online file hosting company ended the fourth quarter with more than14 million paying users. Earnings and revenues increased and surpassed estimates, triggering a stock rally on Thursday evening.
Dropbox reported adjusted earnings of $0.16 per share for the December-quarter, up from $0.10 per share reported last year and above analysts’ consensus estimate. On an unadjusted basis, it recorded a net loss of $6.6 million or $0.02 per share during the period, compared to a loss of $9.5 million or $0.02 per share last year.
Revenues up 19%
Fourth-quarter revenues advanced 19% annually to $446 billion and topped the Street view. At the end of the quarter, Dropbox had around 14.3 million paying customers, which is higher than in the preceding quarter. At $125, the average revenue per paying user was up 5% year-over-year.
Also read: Dropbox Q3 2019 Earnings Conference Call Transcript
“Our strong Q4 marked the end of an exciting year for Dropbox as we launched our vision for the smart workspace. Moving into 2020, I’m confident in the team we have onboard and the opportunity ahead,” said CEO Drew Houston.
One key development that influenced the results is the launch of Dropbox Spaces last year, which is designed to allow clients to build smart workspaces that mitigate distractions linked to the use of technology.
Competition
Of late, Dropbox has been facing competition from free cloud storage providers like Microsoft (MSFT) and Google (GOOG). However, the company’s aggressive portfolio revamp and introduction of new features give it an edge over rivals.
Related: Why Dropbox might not be a good investment option now
A recent study showed that the cloud storage service market is poised for a major expansion in the next few years, which bodes well for Dropbox.
Stock Gains
After experiencing a great deal of volatility, Dropbox’s shares shifted to recovery mode early this year. The stock has been in a downward spiral ever since the company went public two years ago. It closed Thursday’s regular session higher and continued to gain during the after-hours session following the announcement.
Listen to on-demand earnings calls and hear how management responds to analysts’ questions
Most Popular
Key takeaways from Kroger’s (KR) Q1 2025 earnings report
The Kroger Co. (NYSE: KR) recently reported mixed results for the first quarter of fiscal 2025, with earnings beating estimates and sales missing. The grocery giant’s stock rose following the
What to expect when McCormick & Company (MKC) reports Q2 2025 earnings results
Shares of McCormick & Company, Incorporated (NYSE: MKC) gained over 1% on Monday. The stock has dropped 7% over the past three months. The condiments maker is slated to report its second
Earnings Preview: Paychex (PAYX) looks set to end FY25 on a strong note
Paychex Inc. (NASDAQ: PAYX) has benefited from the stable labor market and resilient customers, despite inflationary pressures and the challenging economic environment. The company is leveraging its strong fundamentals and