By
Chimamanda U. Martha
August 25th, 2023
Compared with the results of the last quarter of 2018, the financial situation at Dropbox seems to be much better, as DBX stock adds 5% beating analysts’ expectations.
Dropbox, the San Francisco-based company behind a personal cloud storage service used for file sharing and collaboration, has published a report on its financial performance results for the first quarter of 2019. The results are quite surprising, as the earnings have surpassed expectations of Dropbox analysts.
It is notable that the earnings report of the company for the last quarter of 2018 was messy, as Dropbox suffered sufficient losses. Now, the financial situation seems to be much better and more positive.
According to the press release, the total Dropbox revenue has made up $385.6 million (the analysts expected $382 million), which means an increase of 22% from the same period last year. The average revenue per paying user has accounted $121.04, as compared to $114.30 for the same period of 2018. Net cash provided by operating activities has made up $63.2 million.
Dropbox Co-founder and Chief Executive Officer Drew Houston commented:
“We kicked off 2019 with a strong Q1, driven by continued paying user growth and ARPU expansion. Our 22% top line growth and robust operating margins reflect our efficient go-to-market strategy and operational discipline.
We’ve reached a scale few SaaS companies have achieved and continue to ship product experiences that put Dropbox at the center of our users’ workflows. We also closed our first acquisition as a public company with HelloSign, and I’m excited about our future together.”
Dropbox stock surged by nearly 5% in extended trading, with earnings of 10 cents per share on the total revenue. The company reported a net loss of $7.7 million or $0.02 per share, compared to a loss of $465.5 million or $2.13 per share in the corresponding period of last year.
The positive tendency in the financial performance of Dropbox is connected with the company’s expansion. In February, Dropbox acquired JN Projects (HelloSign) for $230 million, $48.5 million of the sum was subject to on-going employee service. The acquisition expanded the company’s content collaboration capabilities and allowed it to include additional business-critical workflows.
Starting from this year, Dropbox is also exploiting the new leasing standard, ASC 842. The press release states:
“We adopted the new leasing standard, ASC 842, on January 1, 2019, which resulted in the recognition of operating right-of-use assets of $431.7 million and operating lease liabilities of $502.4 million on the condensed consolidated balance sheet. We elected to use the optional transition method relating to comparative reporting at adoption.”
In the near future, Dropbox is planning to further expand and improve its services. For the second quarter of 2019, analysts predict adjusted earnings of 8 cents per share on revenue of $282 million.
Other Companies’ Performance
Other companies have also published reports on their financial performance, however, not all of them can boast high earnings.
Good results were demonstrated by GoPro, whose shares rose by 11%. The adventure camera company reported a loss of 7 cents per share, in comparison with the expected loss of 9 cents. Its revenue accounted $243 million, compared with the expected $234 million.
Yelp stock dropped by more than 6% after the company reported weak first-quarter transactions revenue. The first-quarter earnings made up 2 cents per share and revenue accounted $236 million.
Symantec stock has also fallen by 13%. The drop resulted from the announcement about resignation of the company’s CEO and President Greg Clark. Currently, Symantec is looking for a new permanent executive.