MW Dropbox's results get a break from investors after big selloff in February
By Bill Peters
Company says it plans to keep investing in AI-driven growth
After taking a big hit during its last round of earnings, shares of Dropbox Inc. rose on Thursday after the online-storage platform reported first-quarter results that topped Wall Street's estimates.
Shares rose 2% after hours on Thursday.
Dropbox (DBX) reported first-quarter net income of $132.3 million, or 39 cents a share, compared with $69 million, or 20 cents a share, in the same quarter last year. Adjusted earnings per share came in at 58 cents.
Revenue rose 3.3% from the prior-year quarter to $631.3 million.
Analysts polled by FactSet expected the company to report adjusted earnings per share of 50 cents, on sales of $629 million.
The company had 18.16 million paying users during the quarter, compared with 17.9 million a year ago.
"Looking ahead, we'll stay disciplined in our operations, while investing in growth initiatives focused on building [artificial-intelligence] powered product experiences to improve distributed work for our customers," Chief Executive Drew Houston said in a statement.
Shares of Dropbox are still up 6.3% over the past 12 months. But much of the company's gains over that time were wiped away in February, when its sales outlook disappointed investors. Executives at that time said workplaces were still exercising caution with their tech spending.
-Bill Peters
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 09, 2024 20:16 ET (00:16 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Comments