Dropbox beats Q4 revenue, adjusted EPS expectations

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

*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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