The earnings call showcased Dropbox's strategic advancements and operational efficiency, particularly with the launch and improvements in Dash. Despite a decline in revenue and paying users, Dropbox demonstrated strong operating margin performance and share repurchase activities. Challenges remain with FormSwift and competitive pressures in the market.

Company Guidance -

Q2 2025

During the Dropbox First Quarter 2025 Earnings Conference Call, the company provided detailed guidance for both the second quarter and the full fiscal year. For Q2 2025, Dropbox expects revenue to range between $616 million and $619 million, with FormSwift projected to be a 150 basis point headwind. Non-GAAP operating margin is anticipated to be around 37.5%, and diluted weighted average shares outstanding are expected to be between 279 million and 284 million shares. For the entire fiscal year, Dropbox raised its revenue guidance by $10 million to a range of $2.475 billion to $2.490 billion, maintaining constant currency revenue guidance at $2.483 to $2.498 billion. They anticipate FormSwift to consistently present a 150 basis point revenue headwind throughout the year, while gross margin outlook remains unchanged. Non-GAAP operating margin guidance has been increased by 50 basis points to a range of 38% to 38.5%, and unlevered free cash flow is now expected to be at or above $950 million. Capital expenditures are projected to be between $25 million and $30 million for the year, with finance lease lines estimated at approximately 6% of revenue. Expected diluted weighted average shares outstanding for the year have been revised downward to 276 to 281 million shares due to share repurchase activities.

Highest Ever Non-GAAP Operating Margin

Achieved the highest ever non-GAAP operating margin largely due to headcount reduction and lower marketing spend. Operating margin increased by more than 500 basis points from the year ago period.

Successful Dash Launch and Updates

Launched major updates to Dash, enhancing AI capabilities and user experience. Dash now supports multimodal search including text, images, and video, with significant performance improvements.

Increased Desktop Activations

New desktop activations increased by over 50% year-over-year, driven by improved user prompts and streamlined onboarding processes.

Positive Feedback and Adoption for Dash

Received encouraging customer feedback on Dash's new features, particularly in the creative services industry.

ISO and SOC Certifications for Dash

Dash achieved ISO 27001 compliance and SOC 2 certifications, reinforcing commitment to security and compliance.

Strong Share Repurchase Program

Repurchased approximately 18 million shares, spending $500 million, with $870 million remaining under authorization.

Dropbox (DBX) Earnings, Revenues Date & History

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DBX Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 07, 2025	2025 (Q2)	0.63 / -	0.6	―	―	―
May 08, 2025	2025 (Q1)	0.62 / 0.70	0.58	20.69% (+0.12)
Feb 20, 2025	2024 (Q4)	0.62 / 0.73	0.5	46.00% (+0.23)
Nov 07, 2024	2024 (Q3)	0.53 / 0.60	0.56	7.14% (+0.04)
Aug 08, 2024	2024 (Q2)	0.52 / 0.60	0.51	17.65% (+0.09)
May 09, 2024	2024 (Q1)	0.50 / 0.58	0.42	38.10% (+0.16)
Feb 15, 2024	2023 (Q4)	0.48 / 0.50	0.4	25.00% (+0.10)
Nov 02, 2023	2023 (Q3)	0.49 / 0.56	0.43	30.23% (+0.13)
Aug 03, 2023	2023 (Q2)	0.46 / 0.51	0.38	34.21% (+0.13)
May 04, 2023	2023 (Q1)	0.37 / 0.42	0.38	10.53% (+0.04)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

DBX Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 08, 2025	$29.69	$29.46	-0.77%
Feb 20, 2025	$31.88	$26.73	-16.15%
Nov 07, 2024	$27.88	$27.04	-3.01%
Aug 08, 2024	$21.73	$22.44	+3.27%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.