NASDAQ$DBX

Dropbox Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Dropbox's Q2 2023 earnings surpassed expectations across all metrics, driven by the introduction of AI-powered product experiences and a focus on improving the core Dropbox product.

Dropbox reported a solid Q2 2023, exceeding guidance across all metrics. Total revenue reached $622.5 million, up 8.7% year-over-year, and ARR ended at $2.500 billion, an increase of 7.2% from the same period last year. The company introduced new AI-powered product experiences and remains focused on improving the product experience within core Dropbox.

  • Total revenue was $622.5 million, up 8.7% year-over-year.
  • Total ARR ended at $2.500 billion, an increase of 7.2% from the same period last year.
  • Paying users ended at 18.04 million, compared to 17.37 million for the same period last year.
  • GAAP operating margin was 9.1%, while non-GAAP operating margin was 34.2%.

Headline financials

Total Revenue

$623M

Previous: $573M+8.7%
EPS (adj)

$0.51

Previous: $0.38+34.2%
Paying Users

18.0M

Previous: 17.4M+3.9%
ARPU

$138.94

Previous: $133.34+4.2%
Total ARR

$2.5B

Previous: $2.33B+7.2%
Capital Expenditures

-$4.9M

Previous: -$14.7M+66.7%
Free Cash Flow

$38.3M

Previous: $47.3M-19.0%
Net Income

$43.2M

Previous: $62M-30.3%
Operating Income

$56.5M

Previous: $82.9M-31.8%
Gross Profit

$502M

Previous: $467M+7.6%
Cash & Equivalents

$510M

Previous: $352M+44.9%
Total Assets

$2.94B

Previous: $2.76B+6.5%
Stock-Based Comp

$95.3M

Previous: $85M+12.1%

Revenue & EPS history

Dropbox · Revenue · Quarterly

$623M

Q2 2023+8.7%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Dropbox will provide forward-looking guidance in connection with this quarterly earnings announcement on its conference call, webcast, and on its investor relations website.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-1.1%

Avg return

Earnings day

-2.7%

Avg return

5 days after

-2.4%

Avg return

30 days after

38%

12 / 32 earnings

Positive

+22.5%

Q4 2019

Best reaction

-22.6%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+15.2%+4.5%+9.7%
Q4 2025+2.7%-1.2%+1.2%
Q3 2025+7.6%+7.6%+2.3%
Q1 2025-0.7%-0.3%-0.7%
Q4 2024-16.2%-16.6%-16.9%
Q3 2024-3.1%+0.1%+4.2%
Q2 2024+3.5%+3.7%+6.5%
Q1 2024-0.8%+3.0%-8.1%
Q4 2023-22.6%-25.2%-26.5%
Q3 2023-0.6%-1.0%+10.0%
Q2 2023+6.3%+7.5%+7.7%
Q1 2023+7.2%+6.6%+19.1%
Q4 2022-12.2%-11.9%-17.2%
Q3 2022+3.5%+4.4%+12.8%
Q2 2022-0.8%+1.4%-10.8%
Q1 2022-5.6%-7.8%+1.9%
Q4 2021-7.6%-13.3%-7.5%
Q3 2021-9.5%-7.1%-22.0%
Q2 2021+2.5%+3.0%+3.1%
Q1 2021-0.6%+2.8%+14.6%
Q4 2020-2.7%-3.8%+11.5%
Q3 2020+3.2%-0.4%+9.7%
Q2 2020-10.9%-15.3%-14.9%
Q1 2020+7.5%+8.8%+8.0%
Q4 2019+22.5%+12.7%-4.0%
Q3 2019-3.7%-8.0%-11.1%
Q2 2019-9.9%-11.5%-8.6%
Q1 2019-0.7%-6.3%-2.7%
Q4 2018-8.0%-4.5%-14.8%
Q3 2018+2.2%-5.4%-14.0%
Q2 2018-1.6%-8.2%-15.2%
Q1 2018-0.4%-5.9%-4.6%
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016

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