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Dropbox DBX is scheduled to release fourth-quarter 2024 results on Feb. 20.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
DBX expects fourth-quarter 2024 revenues between $637 million and $640 million. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $638.53 million, indicating year-over-year growth of 0.6%.
The consensus mark for earnings is pegged at 62 cents per share and has been unchanged over the past 30 days. The figure indicates a 24% increase from the year-ago quarter’s reported figure.
Dropbox, Inc. Price and EPS Surprise
Dropbox, Inc. price-eps-surprise | Dropbox, Inc. Quote
DBX’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the earnings surprise being 13.33%, on average.
Let us see how things have shaped up prior to the upcoming announcement.
Key Factors to Consider for DBX’s Q4 Earnings
Through Dropbox's ongoing efforts to refine core FSS offerings and prioritize user experience and retention, the company aims to address the evolving needs of users while solidifying Dropbox’s competitive edge in the cloud storage and collaboration market. These enhancements are expected to have contributed positively to the company's performance in the to-be-reported quarter.
DBX’s AI-powered flagship product, Dash, plays a key role in driving growth by addressing the needs of 1 billion knowledge workers dealing with information overload. With more than 500,000 business accounts, DBX is strategically positioned to expand Dash’s reach. The company expects Dash to boost ARPU, which is likely to have benefited its performance in the fourth quarter.
Dropbox's fourth-quarter 2024 performance is expected to have benefited from the projection of expanding operating margin, which is anticipated to be 36% compared with the previously mentioned 33.5-34%. This improved margin projection indicates enhanced operational efficiency and effective cost management, driving higher profitability for the quarter under review.
The company invested in its document workflow products, aiming to streamline processes and increase efficiency for users. By addressing common pain points in document management, Dropbox sought to enhance customer satisfaction and drive the adoption of its services. Progress in these areas is expected to have continued in the fourth quarter of 2024.
However, DBX is likely to have faced challenges in the fourth quarter due to near-term down-sell risks with some of its larger Teams accounts, coupled with seasonal pressures from FormSwift. These factors are expected to have affected the paying user count, resulting in a modest sequential drop in the overall paying user base in the quarter under review.