Cloud storage and e-signature company Dropbox (Nasdaq: NASDAQ:DBX) will be reporting earnings tomorrow after market hours. Here's what investors should know.
Last quarter Dropbox reported revenues of $622.5 million, up 8.7% year on year, beating analyst revenue expectations by 1.49%. It was a decent quarter for the company, with revenue and EPS exceeding analysts' expectations. The company added 140,000 customers to a total of 18,040,000.
Is Dropbox buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Dropbox's revenue to grow 6.3% year on year to $628.3 million, slowing down from the 7.42% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.49 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1%.
Looking at Dropbox's peers in the productivity software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. ServiceNow (NYSE:NOW) delivered top-line growth of 25% year on year, beating analyst estimates by 0.65%, and Pegasystems (NASDAQ:PEGA) reported revenues up 23.6% year on year, exceeding estimates by 12.8%. ServiceNow traded up 5.9% on the results, Pegasystems was up 1.2%.
Read the full analysis of ServiceNow's and Pegasystems's results on StockStory.
The fears around raising interest rates have been putting pressure on tech stocks, and while some of the productivity software stocks have fared somewhat better, they have not been spared, with share price declining 4.45% over the last month. Dropbox is down 1.83% during the same time, and is heading into the earnings with analyst price target of $30.2, compared to share price of $26.3.
The author has no position in any of the stocks mentioned.
