Latest news with #DrewHouston
Bloomberg
5 days ago
- Business
- Bloomberg
Giving Pledge Adds Ultra-Rich Members to Donate Their Wealth
The Giving Pledge has brought on 11 new signatories in its latest effort to spur philanthropy of the ultra-wealthy. Billionaire Dropbox Inc. co-founder Drew Houston and Invisibly founder Jim McKelvey, along with their spouses, are among the group that has penned letters promising to give away the majority of their wealth in their lifetime or their will.
Forbes
6 days ago
- Business
- Forbes
11 New Members Join The Gates-Buffett Giving Pledge
By Thomas Gallagher Cameron Adams, the Australian billionaire cofounder of Canva, and his wife Lisa Miller, have just joined the Giving Pledge. In its largest cohort since 2021, the Giving Pledge announced 11 new signatories in 2025 who have pledged to donate the majority of their wealth to charitable causes in their lifetime or in their wills. Nine of the new signees hail from the U.S., one from Australia and one from the U.A.E. Six of the new pledgers are members of Forbes billionaires' list and have a combined estimated net worth of $9.3 billion. The wealthiest among them, Cameron Adams, worth an estimated $2.9 billion, is cofounder and chief product officer of graphic design software company Canva. He joins Canva's married cofounders, Melanie Perkins and Cliff Obrecht, who signed the pledge in 2021; Adams joined the pledge with his wife Lisa Miller. The couple's Wedgetail Foundation is devoted to conserving and restoring biodiversity. The second wealthiest in the cohort, Drew Houston, worth an estimated $2.1 billion, is cofounder and CEO of file hosting service Dropbox; Houston joins with his wife, Erin. Additional signatories include Syntel founder Bharat Desai ($1.6B) and his cofounder and wife Neerja Sethi ($1B), who support economic mobility, education and entrepreneurship; Square (now called Block) cofounder Jim McKelvey ($1.6B) and his wife Anna; and founder and CEO of Cambridge, Massachusetts life sciences venture capital firm Flagship Pioneering Noubar Afeyan ($1.2B) and his wife Anna Afeyan Gunnarson. Other newcomers include Emirati businesswoman Muna Easa Al Gurg; Joseph Deitch, the founder and chairman of investment adviser Commonwealth Financial Network; venture capitalist Jay Hoag and his wife Michaela, who founded Part the Cloud, which raises funds for Alzheimer's disease research. The Giving Pledge was created in 2010 by billionaire philanthropists Bill and Melinda Gates and Warren Buffett in an effort to address the world's most urgent issues. Fifteen years ago the Giving Pledge launched with 40 American philanthropists. Since then, over 210 signatories have signed on, including some of the world's wealthiest people, such as Elon Musk, worth an estimated $430 billion and Mark Zuckerberg, worth an estimated $221 billion. And the pledge has attracted wealthy philanthropists from around the globe, from India to Indonesia and beyond. The pledge is a promise, not a contract, and those who run the Giving Pledge do not audit billionaires' giving. Some signers, like Charles Feeney (d. 2023), cofounder of Duty Free Shoppers, gave away far more than half of his fortune to charitable causes. For many other pledgers, including some who have passed away, it's not clear whether or not they have held up their charitable promise.
Yahoo
08-05-2025
- Business
- Yahoo
Dropbox (NASDAQ:DBX) Exceeds Q1 Expectations But Customer Growth Slows Down
Cloud storage and e-signature company Dropbox (Nasdaq: DBX) announced better-than-expected revenue in Q1 CY2025, but sales fell by 1% year on year to $624.7 million. Its non-GAAP profit of $0.70 per share was 12.6% above analysts' consensus estimates. Is now the time to buy Dropbox? Find out in our full research report. Revenue: $624.7 million vs analyst estimates of $620.2 million (1% year-on-year decline, 0.7% beat) Adjusted EPS: $0.70 vs analyst estimates of $0.62 (12.6% beat) Adjusted Operating Income: $260.5 million vs analyst estimates of $237.2 million (41.7% margin, 9.8% beat) Guidance will be provided on the upcoming earnings call and could move shares Operating Margin: 29.4%, up from 22.7% in the same quarter last year Free Cash Flow Margin: 24.6%, down from 32.7% in the previous quarter Customers: 18.16 million, down from 18.22 million in the previous quarter Annual Recurring Revenue: $2.55 billion at quarter end, in line with the same quarter last year Billings: $636.4 million at quarter end, down 1.8% year on year Market Capitalization: $8.47 billion Founded by the long-serving CEO Drew Houston and Arash Ferdowsi in 2007, Dropbox (NASDAQ:DBX) provides a file hosting cloud platform that helps organizations collaborate and share documents. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, Dropbox grew its sales at a weak 4.8% compounded annual growth rate. This fell short of our benchmark for the software sector and is a poor baseline for our analysis. This quarter, Dropbox's revenue fell by 1% year on year to $624.7 million but beat Wall Street's estimates by 0.7%. Looking ahead, sell-side analysts expect revenue to decline by 3% over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and indicates its products and services will face some demand challenges. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable. Dropbox's ARR came in at $2.55 billion in Q1, and over the last four quarters, its growth was underwhelming as it averaged 1.7% year-on-year increases. This performance mirrored its total sales and suggests that increasing competition is causing challenges in securing longer-term commitments. Dropbox reported 18.16 million customers at the end of the quarter, a sequential decrease of 60,000. That's worse than what we've observed previously, and we've no doubt shareholders would like to see the company accelerate its sales momentum. It was good to see Dropbox narrowly top analysts' annual recurring revenue expectations this quarter. We were also happy its billings narrowly outperformed Wall Street's estimates. On the other hand, its customer growth slowed. Guidance will be provided on the upcoming earnings call and could move shares. Overall, this was a mixed quarter. The stock traded down 1.3% to $29.30 immediately following the results. Dropbox's earnings report left more to be desired. Let's look forward to see if this quarter has created an opportunity to buy the stock. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
08-05-2025
- Business
- Business Wire
Dropbox Announces Fiscal 2025 First Quarter Results
SAN FRANCISCO--(BUSINESS WIRE)--Dropbox, Inc. (NASDAQ: DBX) today announced financial results for its first quarter ended March 31, 2025. 'We've had a productive start to the year improving the Dash user experience and making targeted investments to simplify and strengthen our core FSS product,' said Dropbox Co-Founder and Chief Executive Officer Drew Houston. 'More recently, our Spring launch introduced key new Dash features designed to solve specific pain points our customers face, including advanced video and image search and deeper integrations with essential apps. While the macro environment remains fluid, we're focused on refining our execution and increasing our operating efficiency as we continue to capitalize on the Dash opportunity and create value for shareholders.' First Quarter Fiscal 2025 Results Total revenue was $624.7 million, a decrease of 1.0% from the same period last year. On a constant currency basis, year-over-year revenue decreased by 0.6%. (1) Total ARR was $2.552 billion, a decrease of 0.2% from the same period last year. On a constant currency basis, ARR was flat. (2) Utilizing the exchange rates set at the beginning of 2025, total ARR decreased $18.8 million quarter-over-quarter. Paying users was 18.16 million, flat as compared to the same period last year. Average revenue per paying user was $139.26, as compared to $139.59 for the same period last year. Paying users decreased by 60,000 paying users quarter-over-quarter. GAAP gross margin was 81.3%, as compared to 83.2% for the same period last year. Non-GAAP gross margin was 82.9%, as compared to 84.6% for the same period last year as the Company continues to support its datacenter refresh cycle. Additionally, the Company saw a smaller depreciation benefit compared to the 2024 period from the change in useful lives from four to five years of certain infrastructure and component assets which was effective January 1, 2024. (3) GAAP operating margin was 29.4%, as compared to 22.7% for the same period last year. Non-GAAP operating margin was 41.7%, as compared to 36.5% for the same period last year. The increase in GAAP operating margin was partially due to a decrease in stock based compensation of 14%, from $78.0 million to $67.1 million. GAAP net income was $150.3 million, as compared to $132.3 million for the same period last year. Non-GAAP net income was $207.1 million, as compared to $196.7 million for the same period last year. Net cash provided by operating activities was $153.8 million, as compared to $175.5 million for the same period last year. Free cash flow was $153.7 million, as compared to $166.3 million for the same period last year. Cash flows in the first quarter of 2025 included a $36.0 million outflow for the third tranche termination fee related to the partial termination of the Company's lease for its San Francisco, California corporate headquarters and a $10.2 million outflow related to the 2024 reduction in workforce. GAAP diluted net income per share attributable to common stockholders was $0.51, as compared to $0.39 in the same period last year. Non-GAAP diluted net income per share attributable to common stockholders was $0.70, as compared to $0.58 in the same period last year. (4) Cash, cash equivalents and short-term investments ended at $1,180.0 million. (1) We calculate constant currency revenue growth rates by applying the prior period weighted average exchange rates to current period results. (2) We calculate total annual recurring revenue ("Total ARR") as the number of users who have active paid licenses for access to our platform as of the end of the period, multiplied by their annualized subscription price to our platform. We adjust our exchange rates used to calculate Total ARR on an annual basis, at the beginning of each fiscal year. We calculate constant currency Total ARR growth rates by applying the current period exchange rate to prior period results. (3) The impact from the change in our estimate was calculated based on assets that existed as of the effective date of the change and applying the revised estimated useful lives prospectively. (4) GAAP and Non-GAAP diluted net income per share attributable to common stockholders is calculated based upon 295.7 million and 340.7 million diluted weighted-average shares of common stock for the three months ended March 31, 2025 and 2024, respectively. Expand Financial Outlook Dropbox will provide forward-looking guidance in connection with this quarterly earnings announcement on its conference call, webcast, and on its investor relations website at Conference Call Information Dropbox plans to host a conference call today to review its first quarter financial results and to discuss its financial outlook. This call is scheduled to begin at 2:00 p.m. PT / 5:00 p.m. ET and can be accessed by using the web link at About Dropbox Dropbox is the one place to keep life organized and keep work moving. With more than 700 million registered users across approximately 180 countries, we're on a mission to design a more enlightened way of working. Dropbox is headquartered in San Francisco, CA, and has employees around the world. For more information on our mission and products, visit Use of Non-GAAP Financial Measures Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled "About Non-GAAP Financial Measures." Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, among other things, our expectations regarding distributed work and artificial intelligence and machine learning trends, related market opportunities and our ability to capitalize on those opportunities, as well as our ability to improve shareholder returns. Words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "plans," and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. These forward-looking statements speak only as of the date of this press release and are subject to risks, uncertainties, and assumptions including, but not limited to: (i) our ability to retain and upgrade paying users, and increase our recurring revenue; (ii) our ability to attract new users or convert registered users to paying users; (iii) our expectations regarding general economic, political, and market trends and their respective impacts on our business; (iv) impacts to our financial results and business operations as a result of pricing and packaging changes to our subscription plans; (v) our future financial performance, including trends in revenue, costs of revenue, gross profit or gross margin, operating expenses, paying users, and free cash flow; (vi) our ability to achieve or maintain profitability; (vii) our liability or other potential legal, regulatory, or reputational consequences of any unauthorized access to our data or our users' content, including through privacy and data security breaches; (viii) significant disruption of service on our platform or loss of content; (ix) any decline in demand for our platform or for content collaboration solutions in general; (x) changes in the interoperability of our platform across devices, operating systems, and third-party applications that we do not control; (xi) competition in our markets; (xii) our ability to respond to rapid technological changes, extend our platform, develop new features or products, or gain market acceptance for such new features or products; (xiii) our ability to improve quality and ease of adoption of our new and enhanced product experiences, features, and capabilities; (xiv) our ability to manage our growth or plan for future growth; (xv) our various acquisitions of businesses and the potential of such acquisitions to require significant management attention, disrupt our business, or dilute stockholder value; (xvi) our ability to attract, retain, integrate, and manage key and other highly qualified personnel, including as a result of our reduction in workforce announced in October 2024 or our Virtual First model with an increasingly distributed workforce; (xvii) our ability to realize the intended benefits of our workforce reduction announced in October 2024, (xviii) our capital allocation plans with respect to our stock repurchase program and other investments; and (xix) the dual class structure of our common stock and its effect of concentrating voting control with certain stockholders who held our capital stock prior to the completion of our initial public offering. Further information on risks that could affect Dropbox's results is included in our filings with the Securities and Exchange Commission ("SEC"), including our Form 10-K for the year ended December 31, 2024. Additional information will be made available in our quarterly report on Form 10-Q for the quarter ended March 31, 2025 and other reports that we may file with the SEC from time to time, which could cause actual results to vary from expectations. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Dropbox assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by applicable law. (1) Includes stock-based compensation expense as follows (in millions): Expand Three Months Ended March 31, 2025 2024 Cost of revenue $ 4.9 $ 5.2 Research and development 46.7 55.4 Sales and marketing 5.0 5.1 General and administrative 10.5 12.3 Total stock-based compensation $ 67.1 $ 78.0 Expand (2) Includes expenses related to our reduction in workforce such as severance, benefits and other related items during the quarter ended March 31, 2025. Expand Dropbox, Inc. Condensed Consolidated Balance Sheets (In millions) (Unaudited) As of March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 942.2 $ 1,328.3 Short-term investments 237.8 265.9 Trade and other receivables, net 71.6 70.4 Prepaid expenses and other current assets 83.2 73.8 Total current assets 1,334.8 1,738.4 Property and equipment, net 364.6 358.8 Operating lease right-of-use asset 181.4 158.9 Intangible assets, net 48.8 54.9 Goodwill 442.6 442.8 Deferred tax assets 465.2 466.7 Other assets 119.9 104.7 Total assets $ 2,957.3 $ 3,325.2 Liabilities and stockholders' deficit Current liabilities: Accounts payable $ 33.6 $ 36.5 Accrued and other current liabilities 148.5 143.2 Accrued compensation and benefits 40.2 105.2 Operating lease liability 44.3 64.9 Finance lease obligation 126.8 123.3 Convertible senior notes, net, current 693.8 — Term loan, net, current 10.0 10.0 Deferred revenue 739.8 727.7 Total current liabilities 1,837.0 1,210.8 Operating lease liability, non-current 274.5 250.4 Finance lease obligation, non-current 209.9 203.5 Convertible senior notes, net, non-current 688.7 1,381.6 Term loan, net, non-current 961.7 962.9 Other non-current liabilities 61.2 68.4 Total liabilities 4,033.0 4,077.6 Stockholders' deficit: Additional paid-in-capital 2,267.0 2,404.2 Accumulated deficit (3,335.7 ) (3,146.5 ) Accumulated other comprehensive loss (7.0 ) (10.1 ) Total stockholders' deficit (1,075.7 ) (752.4 ) Total liabilities and stockholders' deficit $ 2,957.3 $ 3,325.2 Expand Dropbox, Inc. Condensed Consolidated Statements of Cash Flows (In millions) (Unaudited) Three Months Ended March 31, 2025 2024 Cash flows from operating activities Net income $ 150.3 $ 132.3 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 38.1 31.4 Stock-based compensation 67.1 78.0 Amortization of debt issuance costs 2.3 1.1 Net loss on equity investments 0.5 — Amortization of deferred commissions 7.2 7.5 Non-cash operating lease expense 8.4 9.3 Deferred taxes 1.5 (0.5 ) Other (1.9 ) 1.2 Changes in operating assets and liabilities: Trade and other receivables, net (0.8 ) 1.6 Prepaid expenses and other current assets (15.3 ) (10.7 ) Other assets 1.7 0.9 Accounts payable (3.5 ) (8.2 ) Accrued and other current liabilities (4.1 ) (5.5 ) Accrued compensation and benefits (65.1 ) (66.3 ) Deferred revenue 11.7 16.6 Other non-current liabilities 2.4 1.4 Operating lease liabilities (10.7 ) (14.6 ) Cash paid for lease termination (36.0 ) — Net cash provided by operating activities 153.8 175.5 Cash flows from investing activities Capital expenditures (0.1 ) (9.2 ) Purchase of intangible assets (0.4 ) — Purchases of short-term investments — (62.3 ) Proceeds from sales of short-term investments — 55.6 Proceeds from maturities of short-term investments 30.0 123.9 Other 6.3 5.7 Net cash provided by investing activities 35.8 113.7 Cash flows from financing activities Payments of debt issuance costs and loan commitment fees (3.3 ) — Principal payments against term loan facility (2.5 ) — Payments for taxes related to net share settlement of restricted stock units and awards (39.8 ) (41.3 ) Proceeds from issuance of common stock, net of taxes withheld — 0.1 Principal payments on finance lease obligations (33.8 ) (32.1 ) Common stock repurchases (499.1 ) (279.4 ) Net cash used in financing activities (578.5 ) (352.7 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash 3.3 (2.5 ) Change in cash, cash equivalents, and restricted cash (385.6 ) (66.0 ) Cash, cash equivalents, and restricted cash - beginning of period 1,360.5 614.9 Cash, cash equivalents, and restricted cash - end of period $ 974.9 $ 548.9 Supplemental cash flow data: Property and equipment acquired under finance leases $ 43.6 $ 26.6 Expand Dropbox, Inc. Three Months Ended March 31, 2025 Reconciliation of GAAP to Non-GAAP results (In millions, except for percentages, which may not foot due to rounding) (Unaudited) GAAP Stock-based compensation Acquisition-related and other expenses Intangibles amortization Workforce reduction expense (1) Non-GAAP Cost of revenue $ 116.7 $ (4.9 ) $ — $ (4.8 ) $ (0.3 ) $ 106.7 Cost of revenue margin 18.7 % (0.8 %) — % (0.8 %) — % 17.1 % Gross profit 508.0 4.9 — 4.8 0.3 518.0 Gross margin 81.3 % 0.8 % — % 0.8 % — % 82.9 % Research and development 178.4 (46.7 ) (1.2 ) — (1.2 ) 129.3 Research and development margin 28.6 % (7.5 %) (0.2 %) — % (0.2 %) 20.7 % Sales and marketing 92.0 (5.0 ) — (1.1 ) (0.3 ) 85.6 Sales and marketing margin 14.7 % (0.8 %) — % (0.2 %) — % 13.7 % General and administrative 53.8 (10.5 ) (0.2 ) — (0.5 ) 42.6 General and administrative margin 8.6 % (1.7 %) — % — % (0.1 %) 6.8 % Income from operations $ 183.8 $ 67.1 $ 1.4 $ 5.9 $ 2.3 $ 260.5 Operating margin 29.4 % 10.7 % 0.2 % 0.9 % 0.4 % 41.7 % Expand (1) Includes expenses related to our 2024 reduction in workforce such as severance, benefits and other related items. Expand Dropbox, Inc. Three Months Ended March 31, 2024 Reconciliation of GAAP to Non-GAAP results (In millions, except for percentages, which may not foot due to rounding) (Unaudited) GAAP Stock-based compensation Acquisition-related and other expenses Intangibles amortization Non-GAAP Cost of revenue $ 105.8 $ (5.2 ) $ — $ (3.1 ) $ 97.5 Cost of revenue margin 16.8 % (0.8 %) — % (0.5 %) 15.4 % Gross profit 525.5 5.2 — 3.1 533.8 Gross margin 83.2 % 0.8 % — % 0.5 % 84.6 % Research and development 219.1 (55.4 ) (3.0 ) — 160.7 Research and development margin 34.7 % (8.8 %) (0.5 %) — % 25.5 % Sales and marketing 108.8 (5.1 ) — (3.1 ) 100.6 Sales and marketing margin 17.2 % (0.8 %) — % (0.5 %) 15.9 % General and administrative 54.1 (12.3 ) — — 41.8 General and administrative margin 8.6 % (1.9 %) — % — % 6.6 % Income from operations $ 143.5 $ 78.0 $ 3.0 $ 6.2 $ 230.7 Operating margin 22.7 % 12.4 % 0.5 % 1.0 % 36.5 % Expand Dropbox, Inc. Three Months Ended March 31, 2025 and 2024 (In millions, except for percentages) (Unaudited) Three Months Ended March 31, 2025 2024 Free cash flow reconciliation: Net cash provided by operating activities $ 153.8 $ 175.5 Less: Capital expenditures (0.1 ) (9.2 ) Free cash flow $ 153.7 $ 166.3 Free cash flow margin 24.6 % 26.3 % Plus: Cash paid for interest on debt, net of the associated tax benefit 20.7 — Unlevered free cash flow $ 174.4 $ 166.3 Supplemental disclosures: Key employee holdback payments related to acquisitions (1) $ — $ 0.5 Payments related to workforce reduction (2) $ 10.2 $ — Cash paid for lease termination (3) $ 36.0 $ — Expand (1) During the quarter ended March 31, 2024, we made payments in the amount of $0.5 million related to employee holdbacks pertaining to our acquisitions. The related expenses are recognized within research and development over the required service period. (2) Includes payments made related to our reductions in workforce such as severance, benefits, and other related items. During the quarter ended March 31, 2025, total cash payments included the accrued pro rata amount of annual employee bonus. (3) Includes payments made for the partial termination of our lease for our San Francisco, California corporate headquarters during the quarter ended March 31, 2025. Expand About Non-GAAP Financial Measures To provide investors and others with additional information regarding Dropbox's results, we have disclosed the following non-GAAP financial measures: revenue growth and Total ARR growth excluding foreign exchange effect, which we refer to as on a constant currency basis, non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP operating expenses (including research and development, sales and marketing and general and administrative), non-GAAP income from operations, non-GAAP net income, free cash flow ("FCF"), unlevered FCF and non-GAAP diluted net income per share. Dropbox has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. Non-GAAP cost of revenue, gross profit, operating expenses, income from operations, and net income differ from GAAP in that they exclude stock-based compensation expense, amortization of acquired intangible assets, other acquisition-related expenses, which include third-party diligence costs and expenses related to key employee holdback agreements, expenses related to our reduction in workforce, net loss on equity investments and the income tax effect of the aforementioned adjustments. FCF differs from GAAP net cash provided by operating activities in that it treats capital expenditures as a reduction to net cash provided by operating activities. Free cash flow margin is calculated as FCF divided by revenue. Unlevered FCF represents net cash provided by operating activities adjusted for cash paid for capital expenditures and cash paid for interest on indebtedness and is calculated by adding cash paid for interest on debt, net of the associated tax benefit, to FCF. In order to present revenue on a constant currency basis for the quarter ended March 31, 2025, Dropbox calculates constant currency revenue growth rates by applying the prior period weighted average exchange rates to current period results. Dropbox calculates constant currency Total ARR growth rates by applying the current period rate to prior period results. Dropbox presents constant currency information to provide a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. Dropbox's management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short and long-term operating plans, and to evaluate Dropbox's financial performance and the ability to generate cash from operations. Management believes these non-GAAP financial measures reflect Dropbox's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in Dropbox's business, as they exclude expenses that are not reflective of ongoing operating results. Management also believes that these non-GAAP financial measures provide useful supplemental information to investors and others in understanding and evaluating Dropbox's operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. We believe that the non-GAAP financial measures, non-GAAP cost of revenue, gross profit, operating expenses, income from operations, net income, and diluted net income per share are meaningful to investors because they help identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude. We believe that FCF is an indicator of our liquidity over the long term and provides useful information regarding cash provided by operating activities and cash used for investments in property and equipment required to maintain and grow our business. Unlevered FCF provides additional information about our liquidity adjusted for the impact of our capital structure. FCF and unlevered FCF are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. FCF and unlevered FCF each have limitations as analytical tools, and neither metric should be considered in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash provided by operating activities. Some of the limitations of FCF and unlevered FCF are that they each do not reflect our future contractual commitments, exclude investments made to acquire assets under finance leases, include capital expenditures, and may be calculated differently by other companies in our industry, limiting their respective usefulness as comparative measures. The use of non-GAAP cost of revenue, gross profit, operating expenses, income from operations, net income, free cash flow, unlevered free cash flow, and diluted net income per share measures has certain limitations as they do not reflect all items of income, expense, and cash expenditures, as applicable, that affect Dropbox's operations. Dropbox mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable GAAP financial measures. Additionally, we have provided supplemental disclosures in our reconciliation of net cash provided by operating activities to free cash flow to include expenses related to key employee holdback payments related to our various acquisitions, payments related to workforce reduction and cash paid for lease termination. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages investors and others to review Dropbox's financial information in its entirety and not rely on a single financial measure.
Yahoo
29-03-2025
- Business
- Yahoo
Reflecting On Productivity Software Stocks' Q4 Earnings: Dropbox (NASDAQ:DBX)
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let's take a look at how Dropbox (NASDAQ:DBX) and the rest of the productivity software stocks fared in Q4. Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks. The 17 productivity software stocks we track reported a mixed Q4. As a group, revenues beat analysts' consensus estimates by 1.3% while next quarter's revenue guidance was in line. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.4% since the latest earnings results. Founded by the long-serving CEO Drew Houston and Arash Ferdowsi in 2007, Dropbox (NASDAQ:DBX) provides a file hosting cloud platform that helps organizations collaborate and share documents. Dropbox reported revenues of $643.6 million, up 1.4% year on year. This print exceeded analysts' expectations by 0.7%. Despite the top-line beat, it was still a slower quarter for the company with decelerating customer growth and a miss of analysts' billings estimates. 'We delivered solid results in 2024 and made a lot of progress bringing our AI-powered product, Dash for Business, to market and restructuring our core business to be even more efficient,' said Dropbox Co-Founder and Chief Executive Officer Drew Houston. The stock is down 15.5% since reporting and currently trades at $26.94. Read our full report on Dropbox here, it's free. Founded in 2005, SoundHound AI (NASDAQ:SOUN) develops independent voice artificial intelligence solutions that enable businesses across various industries to offer customized conversational experiences to consumers. SoundHound AI reported revenues of $34.54 million, up 101% year on year, outperforming analysts' expectations by 2.3%. The business had a very strong quarter with an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' billings estimates. SoundHound AI achieved the fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 4% since reporting. It currently trades at $8.84. Is now the time to buy SoundHound AI? Access our full analysis of the earnings results here, it's free. Founded in 2005 by Aaron Levie and Dylan Smith, Box (NYSE:BOX) provides organizations with software to securely store, share and collaborate around work documents in the cloud. Box reported revenues of $279.5 million, up 6.3% year on year, in line with analysts' expectations. It was a slower quarter as it posted full-year EPS guidance missing analysts' expectations. As expected, the stock is down 5.4% since the results and currently trades at $31.70. Read our full analysis of Box's results here. Founded in 2014 and named after the dreaded first day of the work week, (NASDAQ:MNDY) is a software-as-a-service platform that helps organizations plan and track work efficiently. reported revenues of $268 million, up 32.3% year on year. This print surpassed analysts' expectations by 2.5%. Overall, it was a strong quarter as it also logged an impressive beat of analysts' EBITDA estimates and a significant improvement in its net revenue retention rate. The company added 294 enterprise customers paying more than $50,000 annually to reach a total of 3,201. The stock is down 2% since reporting and currently trades at $253.50. Read our full, actionable report on here, it's free. Started in 2005 in Romania as a tech outsourcing company, UiPath (NYSE:PATH) makes software that helps companies automate repetitive computer tasks. UiPath reported revenues of $423.6 million, up 4.5% year on year. This number was in line with analysts' expectations. However, it was a slower quarter as it produced a significant miss of analysts' billings estimates and full-year guidance of slowing revenue growth. UiPath had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is down 9.1% since reporting and currently trades at $10.79. Read our full, actionable report on UiPath here, it's free. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
