Cloud storage and e-signature company Dropbox (Nasdaq: DBX) will be reporting results tomorrow afternoon. Here’s what to expect. Dropbox beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $643.6 million, up 1.4% year on year. It was a slower quarter for the company, with decelerating customer growth and a miss of analysts’ billings estimates. It lost 20,000 customers and ended up with a total of 18.22 million. Is Dropbox a buy or sell going into earnings? Read our full analysis here, it’s free. This quarter, analysts are expecting Dropbox’s revenue to decline 1.8% year on year to $620.2 million, a reversal from the 3.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.62 per share.Dropbox Total Revenue Analysts covering the company have generally 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, beating revenue estimates every single time over the past two years by 0.8% on average. 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. Pegasystems delivered year-on-year revenue growth of 44.1%, beating analysts’ expectations by 33.1%, and Atlassian reported revenues up 14.1%, in line with consensus estimates. Pegasystems traded up 28.8% following the results while Atlassian was down 8.9%. Read our full analysis of Pegasystems’s results here and Atlassian’s results here. There has been positive sentiment among investors in the productivity software segment, with share prices up 17% on average over the last month. Dropbox is up 12.5% during the same time and is heading into earnings with an average analyst price target of $27.05 (compared to the current share price of $28.61). Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. View Comments
Earnings To Watch: Dropbox (DBX) Reports Q1 Results Tomorrow
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