Cloud storage and e-signature company Dropbox (Nasdaq: DBX) will be announcing earnings results this Thursday after market close. Here’s what investors should know.
Dropbox beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $624.7 million, down 1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but decelerating customer growth. It lost -60,000 customers and ended up with a total of 18.16 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 2.5% year on year to $618.4 million, a reversal from the 1.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.63 per share.
The majority of analysts covering the company have 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 0.7% on average.
Looking at Dropbox’s peers in the productivity software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. ServiceNow delivered year-on-year revenue growth of 22.4%, beating analysts’ expectations by 2.9%, and Microsoft reported revenues up 18.1%, topping estimates by 3.5%. ServiceNow traded up 4.3% following the results while Microsoft was also up 3.8%.
Read our full analysis of ServiceNow’s results here and Microsoft’s results here.
Questions about potential tariffs and corporate tax changes have caused much volatility in 2025. While some of the productivity software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.4% on average over the last month. Dropbox is down 4.7% during the same time and is heading into earnings with an average analyst price target of $28.13 (compared to the current share price of $26.13).
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