Dropbox’s First Earnings Beat Not Enough for Investors

By Chris Lange Updated Jan 11, 11:46PM EST · Published May 11, 8:45AM EDT

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Dropbox Inc. (NASDAQ: DBX) released its first earnings report as a public company after the markets closed on Thursday. The company said that it had $0.08 in earnings per share (EPS) on $316.3 million in revenue, while consensus estimates from Thomson Reuters had called for $0.04 in EPS on revenue of $309.26 million. The same period of last year reportedly had EPS of $0.02 and $247.9 million in revenue.

During the quarter, paying users totaled 11.5 million, up from 9.3 million for the same period last year. Average revenue per paying user was $114.30, as compared to $110.79 for the same period last year.

Looking ahead to the second quarter and the full year, the company expects to see revenues in the range of $328 million to $331 million and $1.34 billion to $1.36 billion, respectively. The consensus estimates call for $0.04 in EPS on $324.88 million in revenue for the quarter and $0.20 in EPS on $1.33 billion in revenue for the year.

On the books, Dropbox’s cash and cash equivalents totaled $665.3 million at the end of the quarter, up from $430.0 million in the same period of last year.

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Drew Houston, Dropbox co-founder and CEO, commented:

2018 has already been a banner year for Dropbox, and we’re proud of our strong first quarter as a public company. Growth in paying users and increased adoption of premium plans helped drive first quarter revenue of $316 million, up 28% year-over-year. We continued to add value to our platform with new product features, and enhanced our ecosystem through partnerships with Salesforce and Google. Our team is focused on building a great business for the long-term, and we’re excited for the opportunities ahead of us.

Shares of Dropbox closed Thursday at $32.00, with a consensus analyst price target of $33.15 and a post-IPO range of $27.75 to $34.83. Following the announcement, the stock was down about 2% at $31.38 in early trading indications Friday.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.