From Nasdaq MarketSite: 2024-08-06 13:24:00

Dropbox (DBX) is set to announce its Q2 2024 results on Aug 8, with revenue projected between $628-631 million. The Zacks Consensus Estimate for revenue is $629.65 million, indicating 1.15% growth from the previous year. Earnings are expected to be 52 cents per share, unchanged in 30 days. DBX has beaten earnings estimates in the past four quarters with an average surprise of 13.14%.

Key factors driving growth include an expanding AI product portfolio, a growing paid user base, and improving team collaboration offerings. DBX exited Q1 with 18.16 million paying users and over 700 million registered users. The integration of security features and real-time co-authoring with Microsoft 365 has been a positive development for users. Despite challenges in the microeconomic landscape, DBX is undervalued with a forward Price/Sales ratio of 2.76X.

DBX has underperformed its industry peers, with shares declining by 27% year-to-date. The company’s innovative products like Dropbox Dash and strong partnerships with Google, Slack, and Microsoft, along with a robust liquidity position, are contributing to its growth prospects. While near-term growth may be modest, DBX’s A-grade growth style score indicates potential for long-term returns. With a Zacks Rank #3 (Hold), investors may look for better entry points.



Read more at Nasdaq MarketSite: Dropbox (DBX) Stock Before Q2 Earnings: To Buy or Not to Buy?