In the fourth quarter of 2021, Dropbox reported revenues of $565.5 million, up 12.2% from the year-ago period. Let’s talk about the company’s recent and expected results, how vulnerable it may be, and, finally, who might want to buy it (if it comes to that). With tech valuations far from recent historical highs, Dropbox could find itself in the crosshairs of private equity firms, and a poor earnings report could kick off unwelcome deal-making. The idea is not mere theorizing erstwhile Dropbox competitor Box recently tangled with investors about its leadership, and Zendesk’s performance put it at odds with external investors, forcing the customer support company to fend off a takeover offer. That kind of performance, with falling valuation, decelerating growth and a stagnant share price, is bait for takeover deals, meaning that Dropbox’s ability to rip cash out of its operating business could help make it an enticing target for a hostile acquisition. Dropbox has a market cap of just over $8 billion. The stock was down over 2% this morning at $21.30, but up from the 52-week low of $19.90. The company has a 52-week high of $33 per share. Alternatively, the opposite is possible if Dropbox reports earnings that disappoint the investing community, the company could see its share price fall further. The performance Dropbox reports Thursday could bolster the company’s growth narrative, boost its guidance for the year, encourage its share price and assuage investors. Consumer and business file storage and sharing service Dropbox will report its first-quarter earnings tomorrow, and for the former unicorn and present-day public company, the stakes appear quite high.ĭropbox is coming off a year of growth stuck in the low teens, with growth forecasted to prove even slower growth in 2022.
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