Cloud storage company Dropbox (NASDAQ:DBX) will be reporting results this Thursday after the bell. Here’s what investors should know.
Dropbox beat analysts’ revenue expectations last quarter, reporting revenues of $636.2 million, down 1.1% year on year. It was a strong quarter for the company, with accelerating customer growth and a solid beat of analysts’ EBITDA estimates. It added 10,000 customers to reach a total of 18.08 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, in line with the 1% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. ServiceNow delivered year-on-year revenue growth of 22.1%, beating analysts’ expectations by 0.6%, and Microsoft reported revenues up 18.3%, topping estimates by 1.7%. ServiceNow traded down 17.7% following the results while Microsoft was also down 3.9%.
Read our full analysis of ServiceNow’s results here and Microsoft’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 12.4% on average over the last month. Dropbox is up 6% during the same time and is heading into earnings with an average analyst price target of $25.50 (compared to the current share price of $25.17).
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