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Dropbox Inc. (NASDAQ:DBX), a cloud storage company with impressive gross profit margins of 83% and annual revenue of $2.5 billion, saw its Chief Customer Officer Eric Cox recently execute a sale of company shares. According to an SEC filing, Cox sold 3,765 shares of Dropbox Class A Common Stock on February 27, 2025. The shares were sold at an average price of approximately $26.30 per share, with the transaction totaling $99,009. The sale comes as InvestingPro data shows the company trading at a P/E ratio of 18.3, with management actively pursuing share buybacks.
These shares were sold under a Rule 10b5-1 trading plan, which Cox adopted on March 11, 2024. Following the transaction, Cox retains ownership of 309,550 shares, some of which are restricted stock units subject to vesting conditions through November 2027. For deeper insights into insider trading patterns and comprehensive analysis, including 8 additional ProTips, check out Dropbox’s detailed InvestingPro Research Report.
In other recent news, Dropbox reported fourth-quarter earnings that exceeded analyst expectations, with adjusted earnings per share reaching $0.73, surpassing the consensus of $0.62. Revenue for the quarter was $643.6 million, slightly above the projected $639.05 million, marking a 1.4% year-over-year increase. The company also saw growth in its total annual recurring revenue, which rose 2.0% year-over-year to $2.574 billion, and an increase in paying users to 18.22 million from 18.12 million the previous year. Average revenue per paying user increased to $140.06 from $138.83 year-over-year.
Despite these positive earnings results, Citi analyst Steven Enders adjusted the price target for Dropbox shares to $30 from $31, maintaining a Neutral rating. Enders noted challenges in Dropbox’s core business, including a decline in annual recurring revenue and user numbers quarter-over-quarter. Dropbox’s revenue guidance for the coming year suggests a 3% year-over-year decline, influenced by reduced investment in non-core services and foreign exchange headwinds. Enders expressed concerns about Dropbox’s medium-term growth prospects and highlighted that significant stock buybacks might be supporting the stock price, though they could impact the company’s free cash flow estimates. Nonetheless, Dropbox announced a new $1.2 billion share repurchase program, reflecting confidence in its financial position and commitment to returning value to shareholders.
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