Dropbox Reported Results in line With Analysts' Expectations Dropbox ( NASDAQ:DBX ), a cloud storage and e-signature company, reported Q1 earnings results in line with analysts' expectations, with revenue up 3.3% year on year to $631.3 million. The company made a non-GAAP profit of $0.58 per share, improving from its $0.42 per share in the same quarter last year. Dropbox's gross margin (GAAP) was 83.2%, up from 80.9% in the same quarter last year.
Dropbox'S ( NASDAQ:DBX ) core business delivered in-line revenue and better than anticipated profitability in Q1. Dropbox's revenue growth has been unremarkable over the last three years, growing from $511.6 million in Q1 2021 to $631.3 million this quarter. However, the company's quarterly revenue was only up 3.3% year on year, which might disappoint some shareholders. Additionally, Dropbox's revenue decreased by $3.7 million in Q1 compared to the $2 million increase in Q4 CY2023. Analysts covering the company were expecting sales to grow 1.6% over the next 12 months before the earnings results announcement.
Technical Outlook
NASDAQ:DBX stock is in a Falling Wedge pattern. Which started as a result of the downward Gap from the start of February. Further accentuating the bearish trend is the Relative Strength Index (RSI) of 41.91. In the short term, NASDAQ:DBX is poised for a trend reversal after falling for quite some time.
