Dropbox Shares Tumble after COO Steps Down

Dropbox Inc. (NASDAQ: DBX) announced second fiscal quarter earnings that beat analysts’ estimates. But its shares tumble after the Company said Chief operating officer will step down.

The Company said total revenue rose 27% to USD 339.2 Million, beating analysts’ estimate of USD 330.9 Million, according to Thomson Reuters.

Non-GAAP net income per share was 11 cents, compared to 6 cents in the same period last year. Analysts polled by Thomson Reuters had estimated earnings of 6 cents per share in the second quarter.

Paying users increase to 11.9 Million, compared to 9.9 Million a year earlier. Average revenue per paying user was USD 116.66.

“We delivered another solid quarter of revenue growth in Q2, reflecting the strength of our unique business model,” said Dropbox Co-Founder and Chief Executive Officer Drew Houston. “We added over a dozen new product features to our user and admin experiences, and strengthened our infrastructure, all while driving a 30% free cash flow margin. With our massive scale and continued product innovation, we’re well on our way to advancing our mission of designing a more enlightened way of working.”

Despite the better-than-expected performance, Dropbox shares fell as much as 7.58% to USD 31.8 per share in the early trading on Friday as the Company announced that Dennis Woodside is stepping down as Chief Operating Officer.

Woodside served as Dropbox’s COO since 2014 before he spent two years as CEO of Motorola Mobility. Dropbox has no plan to name a successor.

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