![]() Those forecasts indicate its stock is still cheap relative to its growth. IS DROPBOX STOCK WORTH BUYING FREEIt also reiterated its long-term goal of generating $1 billion in annual free cash flow by 2024, which could give it plenty of room for more ecosystem-expanding acquisitions.Īnalysts expect Dropbox's adjusted earnings to grow 46% this year, thanks to its boost from DocSend, and increase another 12% next year. IS DROPBOX STOCK WORTH BUYING FULLLooking further ahead, it expects its adjusted annual operating margin to remain between 28% and 30%.ĭropbox plans to generate $670 million to $690 million in free cash flow for the full year, which would represent 37%-41% growth from 2020. It plans to offset the impact of the DocSend acquisition in the first half of the year by shifting some of its planned marketing initiatives back toward the second half. Analysts expect its revenue to rise 11% this year, followed by 9% growth next year.ĭropbox expects its non-GAAP operating margin to expand from 21.4% in 2020 to 27%-28% in 2021. ![]() Therefore, Dropbox believes its ARR (annual recurring revenue), which rose 13% year over year to $2.1 billion in the first quarter, will be a better measure of its success this year than its growth in paid users and ARPPU. It noted its number of paying users and ARPPU could experience short-term "variability" due to its promotion of family plans and an intentional shift away from bigger enterprise customers that pay less money per user. (NASDAQ:DBX) was held by Renaissance Technologies, which reported holding 230.3 million worth of stock at the end of September. It expects half of that growth to be organic, and the remaining half to come from its recent takeover of DocSend. Its Value Score of C indicates it would be a neutral pick for value investors. It believes integrating those services will enable it to create an "end-to-end suite of secure, self-serve products for content collaboration, sharing, and e-signature."ĭuring Dropbox's latest conference call, CEO Drew Houston noted there was rising demand for those "seamless" collaboration services among freelancers and small-to-medium businesses, and declared "there's never been a better time in history to be building collaboration software." A stable outlook for the futureĭropbox expects its revenue to rise about 11% this year. Valuation metrics show that Dropbox, Inc. To differentiate itself in this crowded market, Dropbox acquired the e-signature start-up HelloSign in 2019 and the secure document sharing company DocSend earlier this year. ![]() But its cheap because investors expect its growth to decelerate, and for its GAAP earnings to remain in the red. Those growth rates indicate Dropbox isn't falling behind its biggest competitors, which include Box ( BOX 2.15%) and tech giants like Microsoft ( MSFT 2.53%), Alphabet's ( GOOG 0.95%) ( GOOGL 1.16%) Google, and Amazon ( AMZN 3.53%). Dropboxs stock looks cheap at 16 times forward earnings and less than five times this years sales. ![]()
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