Dropbox (DBX) Q4 Earnings: What To Expect

StockStory
19 Feb
Dropbox (DBX) Q4 Earnings: What To Expect

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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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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