9097

Q2 Earnings Highs And Lows: Dropbox (NASDAQ:DBX) Vs The Rest Of The Productivity Software Stocks


Radek Strnad /
2021/10/20 6:50 am EDT
Add to Watchlist

Earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how Dropbox (NASDAQ:DBX) and the rest of the productivity software stocks fared in Q2.

Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work and document management, streamline project management and automate business tasks.

The 15 productivity software stocks we track reported a strong Q2; on average, revenues beat analyst consensus estimates by 5%, while on average next quarter revenue guidance was 4.17% above consensus. The market rewarded the results with the average return the day after earnings coming in at 2.67%.

Dropbox (NASDAQ:DBX)

Founded by the long-serving CEO Drew Houston and Arash Ferdowsi in 2007, Dropbox (NASDAQ:DBX) provides a file hosting cloud platform that helps organizations collaborate and share documents.

Dropbox reported revenues of $530.6 million, up 13.5% year on year, beating analyst expectations by 1.29%. It was a decent quarter for the company, with an improvement in gross margin but a slow revenue growth.

“Q2 was a standout quarter, driven by strong revenue growth, record free cash flow, and margin expansion,” said Dropbox Co-Founder and Chief Executive Officer Drew Houston.

Dropbox Total Revenue

The stock is down 5.16% since the results and currently trades at $29.92.

Read our full report on Dropbox here, it's free.

Best Q2: Monday.com (NASDAQ:MNDY)

Founded in Israel in 2014, and named after the dreaded first day of the work week, Monday.com (NASDAQ:MNDY) makes software as a service platforms that helps teams plan and track work efficiently.

Monday.com reported revenues of $70.6 million, up 93.6% year on year, beating analyst expectations by 13.6%. It was a stunning quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.

Monday.com Total Revenue

Monday.com scored the strongest analyst estimates beat and fastest revenue growth among its peers. The stock is up 48.7% since the results and currently trades at $364.42.

Is now the time to buy Monday.com? Access our full analysis of the earnings results here, it's free.

Box (NYSE:BOX)

Founded in 2005 by Aaron Levie and Dylan Smith, Box (NYSE:BOX) provides organizations with software to securely store, share and collaborate around work documents in the cloud.

Box reported revenues of $214.4 million, up 11.5% year on year, in line with analyst expectations. It was a decent quarter for the company, with a meaningful improvement in gross margin but a slow revenue growth.

Box had the weakest performance against analyst estimates (but they did report preliminary results earlier, so we assume analysts knew what to expect) and slowest revenue growth in the group. The stock is up 1.83% since the results and currently trades at $26.10.

Read our full analysis of Box's results here.

Smartsheet (NYSE:SMAR)

Founded in 2005, Smartsheet (NYSE:SMAR) is a software as a service platform that helps companies plan, manage and report on work.

Smartsheet reported revenues of $131.7 million, up 44.4% year on year, beating analyst expectations by 4.99%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter.

The company added 765 enterprise customers paying more than $5,000 annually to a total of 13,420. The stock is down 13.9% since the results and currently trades at $71.33.

Read our full, actionable report on Smartsheet here, it's free.

Appian (NASDAQ:APPN)

Founded by Matt Calkins and his three friends out of an apartment in Northern Virginia, Appian (NASDAQ:APPN) sells a software platform that lets its users build applications without using much code, allowing them to create new software more quickly.

Appian reported revenues of $82.9 million, up 24.2% year on year, beating analyst expectations by 6.24%. It was a decent quarter for the company, with a solid beat of analyst estimates but a decline in gross margin.

The stock is down 13.5% since the results and currently trades at $97.03.

Read our full, actionable report on Appian here, it's free.

The author has no position in any of the stocks mentioned