Overview
Cloud storage provider's Q4 revenue beat analyst expectations despite a 1.1% yr/yr decline
Adjusted EPS for Q4 beat analyst expectations
Company repurchased 14.4 mln shares for $414.6 mln during the quarter
Outlook
Dropbox plans to drive engagement and adoption of Dash in 2026
Company focuses on strengthening core FSS foundation and accelerating Dash
Result Drivers
FORMSWIFT IMPACT - Revenue declined 1.1% yr/yr, but excluding FormSwift, revenue grew 0.4%
DATACENTER REFRESH - Decrease in gross margin due to increased depreciation from datacenter refresh cycle
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $636.20 mln | $628.90 mln (7 Analysts) |
Q4 Adjusted EPS | Beat | $0.68 | $0.67 (7 Analysts) |
Q4 EPS | $0.43 | ||
Q4 Adjusted Net Income | Slight Beat* | $173.90 mln | $172.66 mln (6 Analysts) |
Q4 Net Income | $108.70 mln | ||
Q4 Gross Margin | 79.20% | ||
Q4 Adjusted EBIT Margin | 38.20% | ||
Q4 EBIT Margin | 25.50% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 3 "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 $29.00, about 17.5% above its February 18 closing price of $24.68
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nBw5pFDZKa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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