Why Is Dropbox (DBX) Stock Rocketing Higher Today
What Happened:Shares of cloud storage and e-signature company Dropbox (Nasdaq: DBX) jumped 7.3% in the after-market session after the company reported first-quarter results that beat analysts' estimates for revenue, gross margin, free cash flow, and earnings per share. However, there was a slowdown in customer growth. While the company lowered revenue guidance for the full year, EBIT guidance was raised. The profitability outlook is promising, considering the initiatives implemented earlier in the year to streamline the workforce and generate significant cost savings. Overall, the market is generally cheering a focus on operating leverage and free cash flow for software companies, a different tone than the 'growth at all costs' mindset of previous years. ... Continue Reading
Kayode Omotosho 2023/05/05 2:16pm
What Happened:Shares of cloud storage and e-signature company Dropbox (Nasdaq: DBX) jumped 7.3% in the after-market session after the company reported first-quarter results that beat analysts' estimates for revenue, gross margin, free cash flow, and earnings per share. However, there was a slowdown in customer growth. While the company lowered revenue guidance for the full year, EBIT guidance was raised. The profitability outlook is promising, considering the initiatives implemented earlier in the year to streamline the workforce and generate significant cost savings. Overall, the market is generally cheering a focus on operating leverage and free cash flow for software companies, a different tone than the 'growth at all costs' mindset of previous years. ... Continue Reading