Dropbox share falls despite beating good Q3 results

Dropbox Shares Fall 5% Despite Beat and Raise Quarter

On November 6, Dropbox, the US-based file-hosting firm, fell more than 5% even after reporting the positive financial quarter three reports and better than expected quarter-four predictions. The firm posted a revenue of $487.4 million, thus, making a 14% growth as compared to last year and earnings per share of $0.26 in comparison to $0.19 prediction.

Further, the firm also announced an operating margin of 23%, an all-time high, in the current quarter as compared to 13.1% last year. The ARPU reached $128.03 while the same was $126.88 in the previous quarter and the firm’s subscriber-based touched 15.25 million, up from 14 million last year.

Moreover, Dropbox further anticipates the quarter four sales between $497 and $499 million, with total revenue for the current year going in between $1.907 billion and $1.909 billion along with a free cash flow of $480-490 million.

Notably, the firm’s future price target moves up at $28.50.

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