Dropbox shares drop 4% despite revenue in line with Street estimates

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Dropbox Inc. shares dipped 4% in after-hours trading Thursday after the file-sharing service reported fiscal second-quarter revenue in line with Wall Street estimates, underscoring the need for Dropbox’s technology among millions of Americans working from home during the pandemic. Dropbox reported net income of $17.5 million, or 4 cents a share, compared with a loss of $21.4 million, or 5 cents a share, in the year-ago quarter. Adjusting for stock-based compensation and other factors, Dropbox reported net income of 22 cents a share, compared with 10 cents a year ago. Revenue improved 16% to $476.4 million from $401.5 million a year ago. Analysts surveyed by FactSet had expected adjusted net income of 17 cents a share on sales of $465 million. Dropbox’s shares are up 30% this year. The broader S&P 500 index has improved 3.7% in 2020.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.