File hosting service company Dropbox, Inc. (NASDAQ: DBX) has reported better-than-expected results for the fourth quarter ended December 31, 2021. The robust results were primarily driven by the overall growth witnessed in revenues.
However, following the results, shares of the company dropped more than 5% to close at $22.30 in Thursday’s extended trading session.
Revenue & Earnings
Dropbox reported quarterly revenues of $565.5 million, up 12.2% from the same quarter last year. Further, the figure surpassed the consensus estimate of $558.16 million.
Earnings per share (EPS) of $0.41 grew 46.4% year-over-year and surpassed the consensus estimate of $0.37.
Average revenue per paying user at the end of the quarter stood at $134.78, up 3.5% from the previous year’s figure of $130.17.
Dropbox’s paying users of 16.79 million at the end of the quarter compare favorably with the figure of 15.48 million reported in the prior-year quarter.
The CEO of Dropbox, Drew Houston, said, “2021 was a strong year for Dropbox. I’m proud of the progress our team made on evolving our core offerings and expanding our product portfolio to align to our customers’ growing needs, all during our first year as a Virtual First company. 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. 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.”
The stock has a Moderate Buy consensus rating based on 1 Buy and 1 Hold. On February 18, JMP Securities analyst Patrick Walravens reiterated a Buy rating on the stock with a price target of $30 (27.23% upside potential). Shares of the company have declined 3.2% over the past year.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Dropbox’s performance this quarter.
According to the tool, year-to-date, the Dropbox website traffic has recorded a fall of 18.78%, compared to the previous year.
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