External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

Equity Bottom-Up

Key points<ul><li>Dropbox was last pitched in August 2022 with nearly reached $1B FCF guidance for 2024</li><li>Company hit a plateau with guidance for $957M to $997M in last earnings call, factoring in stock-based compensation resulting in over $620M in FCF on an $8.1B equity</li><li>Despite recent drop in equity value, Dropbox offers higher earnings yield and potential upside in equity value compared to Box</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key pointsDropbox was last pitched in August 2022 with nearly reached $1B FCF guidance for 2024Company hit a plateau with guidance for $957M to $997M in last earnings call, factoring in stock-based compensation resulting in over $620M in FCF on an $8.1B equityDespite recent drop in equity value, Dropbox offers higher earnings yield and potential upside in equity value compared to BoxThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Dropbox, Inc.'s Q1 2024 earnings showed both positive and negative aspects of the company's financial performance.</li><li>In terms of positives, the company reported revenue for the quarter that met its expectations.</li><li>In addition, Dropbox reported an increase in paying users with 35,000 net new additions, despite a challenging fourth quarter.</li></ul>

Dropbox, Inc.'s Q1 2024 earnings showed both positive and negative aspects of the company's financial performance.In terms of positives, the company reported revenue for the quarter that met its expectations.In addition, Dropbox reported an increase in paying users with 35,000 net new additions, despite a challenging fourth quarter.

Dropbox Inc.: Investments in AI-Enabled Experiences and New Market Opportunities! - Major Drivers

<ul><li>Dropbox is a company that has seen considerable growth in its fourth quarter of 2023, with total revenue increasing by 6% year-on-year to $635 million, surpassing its guidance range.</li><li>However, it also witnessed some challenges during this period, which were anticipated due to broader economic impacts that affected both their teams and document workflow businesses.</li><li>For instance, Dropbox noted a decrease in gross new licenses and upsell activity as well as heightened churn rates.</li></ul>

Dropbox is a company that has seen considerable growth in its fourth quarter of 2023, with total revenue increasing by 6% year-on-year to $635 million, surpassing its guidance range.However, it also witnessed some challenges during this period, which were anticipated due to broader economic impacts that affected both their teams and document workflow businesses.For instance, Dropbox noted a decrease in gross new licenses and upsell activity as well as heightened churn rates.

Dropbox Inc.: The Story Of Its Evolution Into A Comprehensive Content Collaboration Platform! - Major Drivers

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>The SPX, Nasdaq 100, and DJI breaking out to new all-time highs following 3-week consolidations. Russell 2000 (IWM), S&amp;P 400 (IJH), Vanguard ExtendedMarket (VXF), countless other Sectors/industries breaking out also.</li>
<li>This is classic bull market behavior. Considering market dynamics remain healthy, this is all evidence that supports our ongoing bullish outlook.</li>
<li>Software, Data Storage buys: NTAP, NTNX, DBX, VRNS, and CVLT. Investment Banking &amp; Brokerage, Mid-Cap buys: JEF, SF, EVR, MC, and LAZ</li>
</ul>


The SPX, Nasdaq 100, and DJI breaking out to new all-time highs following 3-week consolidations. Russell 2000 (IWM), S&amp;P 400 (IJH), Vanguard ExtendedMarket (VXF), countless other Sectors/industries breaking out also.
This is classic bull market behavior. Considering market dynamics remain healthy, this is all evidence that supports our ongoing bullish outlook.
Software, Data Storage buys: NTAP, NTNX, DBX, VRNS, and CVLT. Investment Banking &amp; Brokerage, Mid-Cap buys: JEF, SF, EVR, MC, and LAZ


Breakouts Proliferate; Bullish Outlook Intact; Small- And Mid-Caps to Lead?

<ul><li>Dropbox managed to exceed analyst expectations in terms of revenue as well as earnings despite economic uncertainties, attributing its success to robust individual SKUs.</li><li>The company emphasizes its two main business objectives: the development of AI-powered product experiences (introducing Dropbox Dash) and the evolution of the core file sync and share offering.</li><li>The focus then shifts to the progress made in the AI product portfolio, specifically highlighting Dropbox Dash's role in universal search.</li></ul>

Dropbox managed to exceed analyst expectations in terms of revenue as well as earnings despite economic uncertainties, attributing its success to robust individual SKUs.The company emphasizes its two main business objectives: the development of AI-powered product experiences (introducing Dropbox Dash) and the evolution of the core file sync and share offering.The focus then shifts to the progress made in the AI product portfolio, specifically highlighting Dropbox Dash's role in universal search.

Dropbox Inc.: How Strategic Realignment is Revolutionizing File Sharing! - Major Drivers

United States

Dropbox, Inc. operates as a platform as a service company. The Company offers a platform that enables users to store and share files, photos, videos, songs, and spreadsheets. Dropbox serves customers worldwide.

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Dropbox Inc (DBX US)

Dropbox Inc (DBX) - Sunday, Mar 10, 2024

Company hit a plateau with guidance for $957M to $997M in last earnings call, factoring in stock-based compensation resulting in over $620M in FCF...

Value Investors Club (VIC)

Dropbox Inc.: Investments in AI-Enabled Experiences and New Market Opportunities! - Major Drivers

Dropbox, Inc.'s Q1 2024 earnings showed both positive and negative aspects of the company's financial performance. In terms of positives, the...

Baptista Research

Dropbox Inc.: The Story Of Its Evolution Into A Comprehensive Content Collaboration Platform! - Major Drivers

Dropbox is a company that has seen considerable growth in its fourth quarter of 2023, with total revenue increasing by 6% year-on-year to $635...

Baptista Research

Breakouts Proliferate; Bullish Outlook Intact; Small- And Mid-Caps to Lead?

Breakouts Proliferate; Bullish Outlook Intact; Small- and Mid-Caps to Outperform? $SPX $QQQ $DJI breakout to all-time highs, $IWM $IJH $VXF,...

Vermilion Research

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Market Cap (USDm)

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Dropbox Inc (DBX) - Sunday, Mar 10, 2024

Company hit a plateau with guidance for $957M to $997M in last earnings call, factoring in stock-based compensation resulting in over $620M in FCF...

Value Investors Club (VIC)

Dropbox Inc.: Investments in AI-Enabled Experiences and New Market Opportunities! - Major Drivers

Dropbox, Inc.'s Q1 2024 earnings showed both positive and negative aspects of the company's financial performance. In terms of positives, the...

Baptista Research

Dropbox Inc.: The Story Of Its Evolution Into A Comprehensive Content Collaboration Platform! - Major Drivers

Dropbox is a company that has seen considerable growth in its fourth quarter of 2023, with total revenue increasing by 6% year-on-year to $635...

Baptista Research

Breakouts Proliferate; Bullish Outlook Intact; Small- And Mid-Caps to Lead?

Breakouts Proliferate; Bullish Outlook Intact; Small- and Mid-Caps to Outperform? $SPX $QQQ $DJI breakout to all-time highs, $IWM $IJH $VXF,...

Vermilion Research

Dropbox Inc.: How Strategic Realignment is Revolutionizing File Sharing! - Major Drivers

Dropbox managed to exceed analyst expectations in terms of revenue as well as earnings despite economic uncertainties, attributing its success to...

Baptista Research