Dropbox just beat Wall Street targets for its first earnings report as a public company but the stock is slipping

Dropbox just beat Wall Street targets for its first earnings report as a public company but the stock is slipping


Dropbox beat Wall Street’s Q1 targets and gave a better-than-expected business forecast on Thursday in its first quarterly report card as a public company. But with investors having already bid up the stock sharply in the first few weeks since its IPO, shares of Dropbox slipped slightly after the „beat-and-raise” report.

The cloud storage company’s revenue increased 28% in the first three months of the year, above the 24.5% clip expected by Wall Street.

And Dropbox said revenue in the second quarter would range between $328 mililon and $331 million, topping the $325.6 million expected by analysts.

Shares of Dropbox, which are up roughly 50% since the company’s March IPO, fell 3% in after hours trading on Thursday following the report.

Here’s what Dropbox reported:

  • Revenue (GAAP) for the quarter: Dropbox reported $316 million, up 28% from the year before. Analysts expected $308.7 million.
  • Earnings per share (Adjusted) for the quarter: Dropbox reported $0.08. Analysts expected $0.02.
  • Net loss (GAAP) was $465.5 million, as compared to a loss of $33.1 million in the same period last year, but $418.7 million of that is related to its IPO.
  • Q2 Revenue guidance: $328 mililon to $331 million, versus $325.6 million expected by analysts.
  • Full year 2018 guidance: $1.343 billion to $1.355 billion, versus $1.33 billion expected by analysts.

Analysts also kept their eyes peeled for Dropbox’s paid user growth, average revenue per user, non-GAAP gross margin and free cash flow.

  • Dropbox had a total of 11.5 million paying users, compared to 9.3 million for the same period last year.
  • The average revenue per paying user was $114.30, compared to $110.79 for the same period last year.
  • Non-GAAP gross margin was 74.2%, compared to 63.5% in the same period last year.
  • Free cash flow was $51.9 million, compared to $56.5 million in the same period last year.

Dropbox didn’t give guidance in its earnings press release but said it would share those figures on its earnings call. Analysts are looking for a revenue guidance (GAAP) for fiscal 2018 of $1.33 billion, and an earnings per share guidance (adjusted) of $0.15.

Dropbox, now valued at $12.5 billion on the public markets, began trading on the Nasdaq at the end of March in what was widely considered a successful IPO.

Business Insider is covering Dropbox’s results and earnings call, so refresh this page or click here for all the latest details.

Read more about what analysts expected from Dropbox here on BI Prime.

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