Dropbox Shares Plunge 13% on ARR and Paying Users Decline Worries

Dropbox Shares Plunge 13% on ARR and Paying Users Decline Worries Feb. 16, 2024, 10:44 a.m., readers: 18

Dropbox (NASDAQ:DBX) unveiled its fourth-quarter financial results, achieving a slight revenue outperformance but experiencing a significant drop of more than 13% pre-market today in stock price due to worries about its Annual Recurring Revenue (ARR) and the count of paying subscribers. The company's earnings per share (EPS) for Q4 were $0.50, beating the analysts' forecast by $0.02, and its revenue increased modestly to $635 million, exceeding the expected $631.57 million. The downturn in stock reflects the market's concern over the company's strategic direction, underscored by a slight decrease in ARR and a reduction of 0.05 million in paying users quarter over quarter, contributing to investor apprehension about Dropbox's future growth and profitability.

About NASDAQ: DBX

D ropbox, Inc. provides a content collaboration platform worldwide. Its platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. As of December 31, 2021, the company had approximately 700 million registered users.

Price: 22.94
Market cap: 7.9 billion USD
Eps: 1.31
P/e ratio: 17.51
Focus Analysis On: DBX