Cloud storage company Dropbox (NASDAQ: DBX) will be announcing earnings results this Thursday after the bell. Here’s what you need to know.
Dropbox beat analysts’ revenue expectations last quarter, reporting revenues of $629.5 million, flat year on year. It was a strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ billings estimates. It added 10,000 customers to reach a total of 18.09 million.
Is Dropbox a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Dropbox’s revenue to be flat year on year, improving from the 1.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Dropbox has a history of exceeding Wall Street’s expectations.
Looking at Dropbox’s peers in the productivity software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Microsoft delivered year-on-year revenue growth of 17.7%, beating analysts’ expectations by 2.6%, and ServiceNow reported revenues up 24%, topping estimates by 1.6%. Microsoft traded up 15.5% following the results while ServiceNow was down 3.7%.
Read our full analysis of Microsoft’s results here and ServiceNow’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 9.6% on average over the last month. Dropbox is up 20.9% during the same time and is heading into earnings with an average analyst price target of $26.17 (compared to the current share price of $34.47).
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