Dropbox wavered Friday, following its fourth-quarter report that beat analyst estimates on the top and bottom lines but issued a first-quarter outlook below expectations.
Dropbox reported adjusted earnings of 41 cents a share on revenue of $565.5 million. However, analysts expected Dropbox to report earnings of 37 cents on revenue of $558 million, according to FactSet. Revenue climbed 12% from the year-ago period.
For its first quarter, Dropbox expects revenue in the range of sales of $557 million to $560 million. The midpoint of $585.5 million is below Wall Street estimates of $562 million.
DBX was up about 2.7% then pulled back. Its was up 0.8% to 23.75 during morning action on the stock market today.
"We improved our non-GAAP operating margin by nearly 9 points, grew free cash flow by over 40% year over year, and delivered our first full year of GAAP profitability," Chief Executive Drew Houston said in written remarks with the Dropbox earnings release.
He added: "Looking ahead to 2022, I'm excited about the opportunity we have to help our customers organize their digital lives and deliver value to our shareholders."
Annual Recurring Revenue Jumps For DBX Stock
Total annual recurring revenue at the end of the year was $2.26 billion. As a result, that's up 11.8% year over year. Average revenue per paying user was $133.73, compared with $128.50 in the prior year.
Dropbox also announced a new $1.2 billion stock buyback program.
"Given the longer-term implications around how people work, the ramp of new innovations, the stock's modest valuation, a generous stock repurchase program, and attractive operating margin expansion, Dropbox may attract value-oriented investors," Monness Crespi White analyst Brian White said in a note to clients.
The company held its initial public offering in 2018 that priced DBX stock at 21.
Dropbox provides a work collaboration software platform. It lets users store, share and collaborate on documents, photos and other files online. Also, it allows users to access files from any device. Founded in 2007, it offers a range of subscription plans.
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