Dropbox's earnings call highlighted strategic progress with Dash and strong financial metrics like operating margin and free cash flow growth. However, challenges persist with a decline in paying users, pressure on Team's business, and headwinds from FormSwift strategy shifts and FX impacts. Despite these challenges, the company demonstrates resilience and strategic focus.

Company Guidance

During the fourth quarter 2024 earnings call, Dropbox provided guidance and expectations for the first quarter and fiscal year 2025, highlighting several key metrics. The company reported a 23% year-over-year growth in free cash flow per share, aided by a share repurchase program that reduced the diluted share count by 12.5 million shares. Dropbox's Q4 revenue was $644 million, with a total annual recurring revenue (ARR) of $2.574 billion, representing a 2% year-over-year increase. The company projected Q1 2025 revenue between $618 million and $621 million, and full-year 2025 revenue between $2.465 billion and $2.480 billion, factoring in a currency headwind of approximately $18 million. Dropbox's non-GAAP operating margin was forecasted to be approximately 38.5% for Q1 2025 and between 37.5% and 38% for the full year. The company guided unlevered free cash flow to be at or above $940 million for 2025, considering the impact of a $36 million lease buyout payment and $11 million in severance costs. Additionally, Dropbox emphasized its strategic focus on scaling its Dash product, which offers AI-powered universal search, while reducing investments in non-core businesses like FormSwift.

Exceeding Sales Goals for Dash

Dropbox launched Dash for business, exceeded Q4 sales goals, and is building a strong pipeline. Universal search and security tools are key features driving customer interest.

Free Cash Flow Growth

The company achieved a 23% year-over-year growth in free cash flow per share for both the quarter and the full-year.

Strong Operating Margin

Dropbox reported an operating margin of 36.9% for Q4, exceeding guidance and reflecting a 470 basis points increase from the previous year.

Successful Share Repurchase Program

Dropbox reduced its diluted share count by 12.5 million shares, contributing to a 24% year-over-year increase in free cash flow per share.

Strategic Investments in Dash

Dropbox is aggressively investing in Dash, with plans for a 2025 product roadmap featuring pioneering improvements and new security features.

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Dropbox (DBX) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DBX Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 01, 2025	2025 (Q1)	0.63 / -	0.58	―	―	―
Feb 20, 2025	2024 (Q4)	0.62 / 0.73	0.5	46.00% (+0.23)
Nov 07, 2024	2024 (Q3)	0.53 / 0.60	0.56	7.14% (+0.04)
Aug 08, 2024	2024 (Q2)	0.52 / 0.60	0.51	17.65% (+0.09)
May 09, 2024	2024 (Q1)	0.50 / 0.58	0.42	38.10% (+0.16)
Feb 15, 2024	2023 (Q4)	0.48 / 0.50	0.4	25.00% (+0.10)
Nov 02, 2023	2023 (Q3)	0.49 / 0.56	0.43	30.23% (+0.13)
Aug 03, 2023	2023 (Q2)	0.46 / 0.51	0.38	34.21% (+0.13)
May 04, 2023	2023 (Q1)	0.37 / 0.42	0.38	10.53% (+0.04)
Feb 16, 2023	2022 (Q4)	0.39 / 0.40	0.41	-2.44% (>-0.01)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DBX Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 20, 2025	$31.88	―	―
Nov 07, 2024	$27.88	$27.04	-3.01%
Aug 08, 2024	$21.73	$22.44	+3.27%
May 09, 2024	$23.14	$23.13	-0.04%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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