Dropbox Files Q2 2024 10-Q

TL;DR

Dropbox's Q2 2024 10-Q is in: check financials for latest performance.

AI Summary

Dropbox, Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers financial performance and operational details for the second quarter of 2024. Key financial data and disclosures relevant to investors are included.

Why It Matters

This filing provides investors with the latest financial performance data for Dropbox, Inc., offering insights into revenue, expenses, and overall financial health for the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags.

Key Players & Entities

• DROPBOX, INC. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240809 (date) — Filing date
• SAN FRANCISCO (location) — Company headquarters city

FAQ

Key Financial Figures

• $0.00001 — stered Class A Common Stock, par value $0.00001 per share DBX The NASDAQ Stock Market L

Filing Documents

• dbx-20240630.htm (10-Q) — 2017KB
• exhibit101-q224.htm (EX-10.1) — 8KB
• exhibit311-q224.htm (EX-31.1) — 10KB
• exhibit312-q224.htm (EX-31.2) — 10KB
• exhibit321-q224.htm (EX-32.1) — 10KB
• 0001467623-24-000041.txt ( ) — 10625KB
• dbx-20240630.xsd (EX-101.SCH) — 60KB
• dbx-20240630_cal.xml (EX-101.CAL) — 108KB
• dbx-20240630_def.xml (EX-101.DEF) — 356KB
• dbx-20240630_lab.xml (EX-101.LAB) — 813KB
• dbx-20240630_pre.xml (EX-101.PRE) — 603KB
• dbx-20240630_htm.xml (XML) — 1736KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which statements involve substantial risk and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about: Our ability to retain and upgrade paying users; Our ability to attract new users or convert registered users to paying users; Our ability to prevent security breaches and our liability or other potential legal, regulatory, or reputational consequences of any unauthorized access to our data or our customer data, including the impact of the incident we experienced in April 2024; Our future financial performance, including trends in revenue, costs of revenue, gross profit or gross margin, operating expenses, paying users, annual recurring revenue, average revenue per user, free cash flow, and the assumptions underlying such trends; Our expectations regarding general economic, political, and market trends and their respective impacts on our business; Our ability to compete successfully in competitive markets; Our expectations regarding the potential impacts of a more permanent global shift to remote or distributed work, on our business, the business of our customers, suppliers and

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited) 6 Condensed Consolidated Balance Sheets as of June 3 0 , 2024 and December 31, 2023 6 Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 3 0 , 2024 and 2023 7 Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 3 0 , 2024 and 2023 8 Condensed Consolidated Statements of Stockholders' Deficit for the Three and Six Months Ended June 3 0 , 2024 and 2023 9 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 3 0 , 2024 and 2023 10 Notes to Condensed Consolidated Financial Statements 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 39

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 58

Controls and Procedures

Item 4. Controls and Procedures 59

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 60

Risk Factors

Item 1A. Risk Factors 61

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 92

Other Information

Item 5. Other Information 92

Exhibits

Item 6. Exhibits 92 Exhibit Index 93

Signatures

Signatures 94 5 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS DROPBOX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) As of June 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 515.1 $ 614.9 Short-term investments 547.4 741.1 Trade and other receivables, net 67.1 68.7 Prepaid expenses and other current assets 101.8 91.9 Total current assets 1,231.4 1,516.6 Property and equipment, net 323.7 309.2 Operating lease right-of-use asset 176.9 183.8 Intangible assets, net 56.4 58.1 Goodwill 411.9 402.2 Deferred tax assets 461.5 460.4 Other assets 56.7 53.2 Total assets $ 2,718.5 $ 2,983.5 Liabilities and stockholders' deficit Current liabilities: Accounts payable $ 37.8 $ 38.5 Accrued and other current liabilities 151.6 155.2 Accrued compensation and benefits 67.0 109.2 Operating lease liability 69.1 57.4 Finance lease obligation 115.5 116.2 Deferred revenue 743.0 725.0 Total current liabilities 1,184.0 1,201.5 Operating lease liability, non-current 274.9 310.7 Finance lease obligation, non-current 167.2 168.5 Convertible senior notes, net, non-current 1,379.7 1,377.8 Other non-current liabilities 84.0 90.8 Total liabilities 3,089.8 3,149.3 Commitments and contingencies (Note 9) Stockholders' deficit: Additional paid-in-capital 2,519.9 2,598.0 Accumulated deficit ( 2,872.6 ) ( 2,742.3 ) Accumulated other comprehensive loss ( 18.6 ) ( 21.5 ) Total stockholders' deficit ( 371.3 ) ( 165.8 ) Total liabilities and stockholders' deficit $ 2,718.5 $ 2,983.5 See accompanying Notes to Condensed Consolidated Financial Statements. 6 Table of Contents DROPBOX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenue $ 634.5 $ 622.5 $ 1,265.8 $ 1,233.6 Cost of revenue (1)(2) 107.0 120.1 212.8 236.9 Gross profit 527.5 502.4 1,053.0 996.7 Operating expenses: Research and development (

Business

Business Dropbox, Inc. (the "Company" or "Dropbox") helps keep life organized and work moving. The Company was incorporated in May 2007 as Evenflow, Inc., a Delaware corporation, and changed its name to Dropbox, Inc. in October 2009. The Company is headquartered in San Francisco, California. Basis of presentation and consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the United States of America generally accepted accounting principles ("GAAP") and applicable rules and regulations of the SEC regarding interim financial reporting. The accompanying unaudited condensed consolidated financial statements include the accounts of Dropbox and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of December 31, 2023 included herein was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheets, statements of operations, statements of comprehensive income, statements of stockholders' deficit and the statements of cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ended December 31, 2024 or any future period. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2023, included in the Company's Annual Report on Form 10-K on file with the SEC ("Annual Report"). Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company's condensed consolidated financial statements and

View Full Filing

View this 10-Q filing on SEC EDGAR