Revenues grew by 10% to $562.4 million, which translated into a similar increase in adjusted earnings to $0.38 per share. At 17.09 million, the number of paying users was up 8% in the March quarter, while revenue-per-user rose modestly to $134.63.
The top line and net profit exceeded estimates in the first quarter, though by a thin margin. It complements the transformation brought about by the acquisition of document sharing platforms DocSend and HelloSign in recent years, with the aim of helping customers manage end-to-end document workflows with ease. The initiatives allow easier onboarding of new team members, improved mobile experience, and convenient editing facilities. The momentum is unlikely to weaken in the near future because customers’ response to recent efforts to enhance the platform has been quite encouraging. Read management/analysts’ comments on Dropbox’s Q1 earnings Rather, the company benefitted from the high demand for digital services during the pandemic, a trend it expects to continue and drive growth in the long term. The overall performance was not affected by the macro headwinds. The San Francisco-based company enjoys the rare distinction of beating earnings and revenue forecasts in almost every quarter over the years. Dropbox’s valuation is very low in relation to its impressive financial results – a market capitalization of around $8 billion and free cash flow of about $700 million since last year.
As evidenced by the authorization of a major share buyback program recently, the management remains committed to enhancing shareholder value. When the market selloff battered Wall Street recently, Dropbox was not spared.ĭBX lost about 24% since last year but the stock has what it takes to shrug off the weakness and return to the record highs seen a few years ago.
( NASDAQ: DBX) had a strong start to the new fiscal year and it seems everything is working in the file-sharing company’s favor, except the performance of its stock.
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