Dropbox Inc. (DBX) saw its stock price plummet by 6.38% on Wednesday morning, despite reporting better-than-expected earnings and revenue for the third quarter of 2024. The cloud storage company's Q3 earnings of $0.60 per share and revenue of $638.8 million surpassed analyst estimates, but the positive results were overshadowed by concerns about the company's growth prospects and future profitability.

While Dropbox's top and bottom lines exceeded expectations, the company's shares tumbled sharply in after-hours trading on Tuesday and continued to decline on Wednesday. The sell-off suggests that investors were not entirely convinced by the company's performance or outlook, despite the earnings beat.

One potential concern for investors could be Dropbox's slowing growth rates. The company's revenue growth of 0.9% year-over-year in Q3 2024 was relatively modest, indicating that the company may be facing challenges in sustaining its previous growth trajectory. Additionally, analysts may have raised questions about Dropbox's ability to maintain profitability levels and meet long-term financial targets, even as it delivered a solid quarter.