Rosy guidance and a cheap valuationĭropbox expects its fourth-quarter revenue to rise 11%-12% year over year with a non-GAAP operating margin of 22%-22.5%. Therefore, economies of scale are seemingly kicking in for Dropbox, but not for Box. On a GAAP basis, it posted a profit of $32.7 million, compared to a net loss of $17 million a year earlier.īy comparison, Box is only profitable on a non-GAAP basis, and it expects to remain unprofitable on a GAAP basis for the full year. Stable profit growthĭropbox's expanding margins in the third quarter - which it attributed to cost efficiency gains across its infrastructure hardware, more prudent spending during the pandemic, and a postponed brand campaign - also indicate it will remain firmly profitable for the foreseeable future.ĭropbox's non-GAAP net income nearly doubled year over year to $110.2 million, or $0.26 per share, during the third quarter and beat estimates by seven cents. Dropbox and Box are also popular with companies that don't want to be locked into Microsoft and Google's prisoner-taking ecosystems. Other tools, including HelloSign for digital signatures and Dropbox Transfer for sending files, unite those services to make Dropbox a collaboration platform (instead of a basic cloud storage service) for many large companies. Source: Dropbox.ĭropbox attributes that growth to its integration with other collaboration services - including Zoom Video Communications, Microsoft Office, Slack, and - which all benefited from remote work, online education, and other stay-at-home trends during the pandemic.
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