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Dropbox is sinking even though it just beat Wall Street's targets in its first-ever earnings report (DBX)

Dropbox reported $316 million in quarterly revenue, while analysts expected $308.7 million. The company also reported $0.08 in earnings per share, while analysts expected $0.05.

  • The file sharing company Dropbox reported earnings for the first time ever on Thursday.
  • The company beat Wall Street's expectations on both revenue and earnings per shares but didn't give guidance for the upcoming quarters.
  • Dropbox
  • Analysts had high expectations of Dropbox. They're looking for modest revenue gains, and also want to see growth in key areas like paid users.
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Dropbox beat Wall Street's Q1 targets and gave a better-than-expected business forecast on Thursday in its first quarterly report card as a public company. But with investors having already bid up the stock sharply in the first few weeks since its IPO, shares of Dropbox slipped slightly after the "beat-and-raise" report.

The cloud storage company's revenue increased 28% in the first three months of the year, above the 24.5% clip expected by Wall Street.

And Dropbox said revenue in the second quarter would range between $328 million and $331 million, topping the $325.6 million expected by analysts.

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Shares of Dropbox, which are up roughly 50% since the company's March IPO, fell 4% in after hours trading on Thursday following the report.

Here's what Dropbox reported:

  • Revenue (GAAP) for the quarter:
  • Earnings per share (Adjusted) for the quarter:
  • Net loss (GAAP)
  • 418.7
  • Q2 Revenue guidance:
  • Full year 2018 guidance:

"Some of the good news is that we have been cash flow positive for a long time. We didn't need to go public to raise money; we think it's a good thing to have a healthy balance sheet but we can be opportunistic," CEO Drew Houston said on the conference call.

Analysts also kept their eyes peeled for Dropbox's paid user growth,

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  • paying users
  • average revenue per paying
  • Non-GAAP gross margin

Dropbox, now valued at $12.5 billion on the public markets, began trading on the Nasdaq at the end of March inwhat was widely considered a successful IPO.

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