Cloud storage company Dropbox (NASDAQ: DBX) will be reporting results this Thursday after market hours. Here’s what to look for.
Dropbox beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $625.7 million, down 1.4% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and accelerating customer growth. It lost -30,000 customers and ended up with a total of 18.13 million.
Is Dropbox a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Dropbox’s revenue to decline 2.3% year on year to $624.1 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.65 per share.
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 0.7% on average.
Looking at Dropbox’s peers in the productivity software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Pegasystems delivered year-on-year revenue growth of 17.3%, beating analysts’ expectations by 8.5%, and Microsoft reported revenues up 18.4%, topping estimates by 2.9%. Pegasystems traded up 15% following the results while Microsoft was down 3.1%.
Read our full analysis of Pegasystems’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 4.2% on average over the last month. Dropbox is down 1.2% during the same time and is heading into earnings with an average analyst price target of $27.88 (compared to the current share price of $28.98).
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