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Dropbox (DBX) Reports Q4: Everything You Need To Know Ahead Of Earnings


Radek Strnad /
2023/02/15 4:27 am EST

Cloud storage and e-signature company Dropbox (Nasdaq: DBX) will be reporting results tomorrow after the bell. Here's what you need to know.

Last quarter Dropbox reported revenues of $591 million, up 7.42% year on year, in line with analyst expectations. It was a weaker quarter for the company, with slow revenue growth and decelerating customer growth. The company added 180,000 customers to a total of 17,550,000.

Is Dropbox buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Dropbox's revenue to grow 4.92% year on year to $593.3 million, slowing down from the 12.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.39 per share.

Dropbox Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 0.97%.

Looking at Dropbox's peers in the productivity software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Atlassian delivered top-line growth of 26.7% year on year, beating analyst estimates by 2.74% and 8x8 reported revenues up 17.5% year on year, missing analyst estimates by 0.91%. Atlassian traded down 10% on the results, and 8x8 was flat on the results. Read our full analysis of Atlassian's results here and 8x8's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 14.3% over the last month. Dropbox is up 5.45% during the same time, and is heading into the earnings with analyst price target of $26.9, compared to share price of $23.99.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.