Cloud storage and e-signature company Dropbox (Nasdaq: DBX) will be announcing earnings results tomorrow after market close. Here's what to expect.
Last quarter Dropbox reported revenues of $562.4 million, up 9.92% year on year, in line with analyst expectations. It was a decent quarter for the company, with a meaningful improvement in gross margin. The company added 300,000 customers to a total of 17,090,000.
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 7.66% year on year to $571.2 million, slowing down from the 13.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.
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 0.98%.
Looking at Dropbox's peers in the productivity software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. 8x8 delivered top-line growth of 26.4% year on year, beating analyst estimates by 0.44% and Five9 reported revenues up 31.7% year on year, exceeding estimates by 5.16%. 8x8 traded down 2.81% on the results, and Five9 was up 8.25%. Read our full analysis of 8x8's results here and Five9's results here.
Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 0.8% over the last month. Dropbox is down 1.78% during the same time, and is heading into the earnings with analyst price target of $30, compared to share price of $21.95.
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The author has no position in any of the stocks mentioned.