DBX - Dropbox pops as Wall Street praises strong Q2 results

2023-08-04 11:29:57 ET

Dropbox ( NASDAQ: DBX ) shares rose nearly 6% on Friday after the cloud software company reported second-quarter results that were better-than-expected, resulting in some praise from Wall Street.

KeyBanc Capital Markets analyst Thomas Blakey, who has an overweight rating on Dropbox ( DBX ), boosted his price target to $35 from $32, noting that the company looks "well positioned" to benefit from artificial intelligence.

In June, Dropbox ( DBX ) announced several AI-related tools, including Dropbox AI for Files and Dash, an AI-powered universal search.

J.P. Morgan analyst Mark Murphy, who has an overweight rating on Dropbox ( DBX ) and $33 price target, said he is "optimistic" that the company can maintain its long-term margins even as it invests in its platform.

Dropbox ( DBX ) earned 51 cents per share, excluding one-time items, as revenue rose 8.7% year-over-year to $622.5M. Analysts were expecting the company to earn 46 cents per share on $613.9M in revenue.

Free cash flow during the period came in at $184.6M, above estimates.

Competitor Box ( BOX ) shares rose 0.7% in sympathy on back of the results.

More on Dropbox

• Dropbox, Inc. Q2 2023 Earnings Call Transcript
• Examining Dropbox's Battle For Relevance In A Crowded Market
• Dropbox Stock Is A Screaming Buy

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