Cloud storage and e-signature company Dropbox (Nasdaq: DBX) will be reporting results tomorrow after market close. Here’s what investors should know.
Dropbox met analysts’ revenue expectations last quarter, reporting revenues of $638.8 million, flat year on year. It was a slower quarter for the company, with decelerating customer growth and a miss of analysts’ billings estimates. It added 20,000 customers to reach a total of 18.24 million.
Is Dropbox a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Dropbox’s revenue to be flat year on year at $639 million, slowing from the 6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.62 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dropbox has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 0.8% on average.
Looking at Dropbox’s peers in the productivity software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Atlassian delivered year-on-year revenue growth of 21.4%, beating analysts’ expectations by 3.4%, and Monday.com reported revenues up 32.3%, topping estimates by 2.5%. Atlassian traded up 15.2% following the results while Monday.com was also up 26.9%.
Read our full analysis of Atlassian’s results here and Monday.com’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 5% on average over the last month. Dropbox is up 6.7% during the same time and is heading into earnings with an average analyst price target of $29.21 (compared to the current share price of $33.18).
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