Dropbox Fourth-Quarter Results Beat Estimates - Buyback Is Set

Dropbox, the San Francisco online storage and collaboration platform, reported a fourth-quarter net loss flat with a year earlier as revenue advanced 19%. Both figures were better than analysts expected.
Author:
Publish date:

Dropbox,  (DBX) - Get Report the San Francisco online storage and collaboration platform, reported a fourth-quarter net loss flat with a year earlier as revenue advanced 19%. Both figures were better than analysts expected.

And the board authorized management to buy back as much as $600 million of shares.

The GAAP net loss was 2 cents a share in the current and year-earlier quarters. The latest adjusted earnings were 16 cents a share.

Revenue reached $446 million from $375.9 million.

A survey of analysts by FactSet produced consensus estimates of a GAAP loss of 3 cents a share, or an adjusted profit of 14 cents, on revenue of $443.3 million.

At last check Dropbox shares were trading up 6.4%. They closed the regular session on Thursday up 2.2% at $18.72. In 2020 through the regular close Thursday, the shares were up 4.5%.

Annual recurring revenue was $1.82 billion, up 19% from a year earlier. This figure is the number of Dropbox's paid licensees times their annual subscription prices.

Dropbox reported 14.3 million paying users at the end of the fourth quarter, up 13% from a 12.7 million a year earlier. Average revenue per paying user was $125, up 4.5% from $119.61.

GAAP gross margin widened to 76.5% from 74.9%.

The company ended the quarter with $1.16 billion of cash, cash equivalents and short-term investments, up 6.4% from $1.09 billion a year earlier.

And the company said it would buy back shares on the open market or privately. It didn't provide a time frame for the buyback.