From Nasdaq: 2024-05-10 11:32:00

Dropbox (DBX) reported strong first-quarter 2024 results, with non-GAAP earnings of 58 cents per share, beating estimates by 18.37% and increasing 38.1% year over year. Revenues of $631.3 million were up 3.3% year over year. The company ended the quarter with 18.16 million paying users, with an average revenue per user of $139.59. Their total annual recurring revenues reached $2.556 billion.

In the first quarter, Dropbox reported a non-GAAP gross margin of 84.6%, up 220 basis points year over year. Operating expenses decreased across the board, contributing to an improved non-GAAP operating margin of 36.5%, up 800 bps year over year. As of March 31, 2024, the company had $1.18 billion in cash, cash equivalents, and short-term investments.

For the second quarter of 2024, Dropbox expects revenues between $628 million and $631 million and a non-GAAP operating margin of around 33%. For the full year, revenues are expected to be between $2.535 billion and $2.55 billion, with a gross margin of 83-83.5% and an operating margin of 32.5-33%. Free cash flow is expected to range from $910 million to $950 million.

Dropbox currently has a Zacks Rank #2 (Buy) and shares have decreased 21.5% year to date. Other top-ranked stocks in the sector include Nutanix (NTNX), NetApp (NTAP), and NVIDIA (NVDA), offering investment opportunities with positive growth trends. Nutanix, NetApp, and NVIDIA are scheduled to report their respective fiscal results in the upcoming weeks.



Read more at Nasdaq: Dropbox (DBX) Q1 Earnings Beat Estimates, Revenues Up Y/Y