Dropbox rises after beating estimates on revenue and earnings

Dropbox shares rose more than 8 percent on Thursday after the maker of collaboration software reported better-than-expected third-quarter earnings. The company will hold a conference call with analysts at 5 p.m. Eastern time.

Here are the key numbers:

  • Earnings: 11 cents per share, excluding certain items, vs. 6 cents per share as expected by analysts, according to Refinitiv.
  • Revenue: $360.3 million, vs. $352.7 million as expected by analysts, according to Refinitiv.

Revenue was up 26 percent from a year earlier, according to a statement.

Dropbox, which has more than 500 million registered users, had 12.3 million paying users in the third quarter, just above the 12.2 million estimated by StreetAccount. Deferred revenue of $479.3 million came in below the $483.4 million StreetAccount estimate.

The company will announce guidance on the conference call. Analysts polled by Refinitiv expect earnings per share of 6 cents in the fourth quarter on revenue of $363.7 million.

Dropbox stock has fallen nearly 22 percent in the past three months.

“We believe high expectations/multiples are warranted for Dropbox,” Mark Mahaney, an analyst at RBC Capital Markets, wrote in a report this week. He recommends buying the shares.

WATCH: Dropbox CEO says some people are “misunderstanding” the business

Leave a Comment