NASDAQ$DBX

Dropbox Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Dropbox reported steady revenue growth and an increase in non-GAAP earnings, despite a decline in GAAP net income due to restructuring costs.

Dropbox's Q4 FY24 revenue reached $643.6 million, reflecting a 1.4% year-over-year increase. Non-GAAP EPS improved to $0.73 from $0.50 in the prior year, while GAAP EPS declined to $0.34 due to restructuring-related expenses. The company reported an operating margin of 13.7% (GAAP) and 36.9% (non-GAAP). Free cash flow remained strong at $210.5 million, supported by disciplined financial management.

  • Revenue increased 1.4% year-over-year to $643.6 million.
  • GAAP net income declined to $102.8 million due to restructuring expenses.
  • Non-GAAP net income improved to $222.6 million, with an EPS of $0.73.
  • Free cash flow remained strong at $210.5 million.

Headline financials

Total Revenue

$644M

Previous: $635M+1.4%
EPS (adj)

$0.73

Previous: $0.50+46.0%
Paying Users

18.2M

No prior period
ARPU

$140.06

No prior period
Capital Expenditures

-$3.5M

Previous: -$10.3M+66.0%
Net Income

$103M

Previous: $227M-54.8%
Operating Income

$87.9M

Previous: $267M-67.1%
Gross Profit

$523M

Previous: $513M+1.9%
R&D Expense

$243M

Previous: $222M+9.4%

Revenue & EPS history

Dropbox · Revenue · Quarterly

$644M

Q4 2024+1.4%vs Q4 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Dropbox expects to continue investing in AI-powered solutions while maintaining a disciplined approach to cost management.

Tailwinds

  • Focus on AI-powered product Dash for Business is gaining traction.
  • Ongoing cost optimizations expected to enhance profitability.
  • Growing demand for cloud storage and collaboration solutions.
  • Share repurchase program supports shareholder value.
  • Strong free cash flow position allows continued investment in growth initiatives.

Headwinds

  • Impact of foreign exchange rates may pressure revenue growth.
  • Ongoing restructuring expenses could weigh on short-term profitability.
  • Competitive landscape in cloud storage remains challenging.
  • Macroeconomic uncertainties could affect enterprise spending.
  • Paying user growth remains relatively modest.

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 Q4 2024

Historical avgQ4 2024

-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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