Dropbox (DBX) Q4 FY2024 earnings: revenue $644 million, up 1.4% on the year

Dropbox, Inc. (DBX) reported revenue of $644 million for Q4 FY2024, the quarter ended 31 December 2024, up 1.4% on the same quarter a year earlier. Net income was $103 million, down 54.8% on the year, and diluted earnings per share $0.34. The figures are the company's own, from the 10-K it filed with the SEC on 21 February 2025.

Revenue$644 millionup 1.4%

Net income$103 milliondown 54.8%

Diluted EPS$0.34

QuarterQ4 FY2024ended 31 December 2024

The quarter, against the one before and a year earlier

Line	Q4 FY2024	Q3 FY2024	Q4 FY2023	Change on the year
Revenue	644	639	635	+1.4%
Cost of revenue	121	112	122	-1.0%
Gross profit	523	527	513	+1.9%
Gross margin	81.2%	82.5%	80.8%
Research and development	243	226	222	+9.4%
Operating income	87.9	128	267	-67.1%
Operating margin	13.7%	20.0%	42.1%
Pre-tax income	92.4	133	272	-66.1%
Income tax	-10.4	26.0	45.0	n/a
Effective tax rate	-11.3%	19.6%	16.5%
Net income	103	107	227	-54.8%
Net margin	16.0%	16.7%	35.8%
Diluted EPS	$0.34	$0.34	$0.66	-48.5%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q4 FY2024	Q3 FY2024	Q4 FY2023	Change on the year
Operating cash flow	214	274	200	+6.7%
Capital expenditure	3.3	4.1	10.0	-67.0%
Free cash flow	210	270	190	+10.6%
Free cash flow margin	32.7%	42.3%	30.0%
Cash from investing	114	153	-22.0	n/a
Cash from financing	524	-431	-172	n/a
Depreciation and amortisation	37.9	35.4	42.9	-11.7%
Share-based compensation	85.7	92.3	82.9	+3.4%
Buybacks	353	349	106	+232.7%
Diluted shares, weighted	307m	316m	344m	-10.8%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2024	Q3 FY2024	Q4 FY2023	Change on the year
Shareholders' equity	-752	-546	-166	n/a
Debt	1,382	1,381	1,378	+0.3%
Operating lease liabilities	250	265	311	-19.4%
Finance lease liabilities	204	189	168	+20.8%
Other liabilities	2,242	1,289	1,292	+73.5%
Total liabilities and equity	3,325	2,577	2,984	+11.5%
Fixed assets	359	346	309	+16.0%
Goodwill	443	443	402	+10.1%
Intangible assets	54.9	62.2	58.1	-5.5%
Investments	266	373	741	-64.1%
Cash and equivalents	1,328	518	615	+116.0%
Receivables	70.4	69.5	68.7	+2.5%
Other assets	804	765	789	+1.9%
Total assets	3,325	2,577	2,984	+11.5%

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	633	635	631	634	639	644	625	626	634	636	630	632
Cost of revenue	120	122	106	107	112	121	117	124	128	132	128	125
Gross profit	513	513	526	528	527	523	508	502	506	504	501	506
Gross margin	81%	81%	83%	83%	83%	81%	81%	80%	80%	79%	80%	80%
R&D	216	222	219	227	226	243	178	184	182	187	184	188
Operating income	131	267	144	127	128	87.9	184	168	175	162	173	165
Operating margin	21%	42%	23%	20%	20%	14%	29%	27%	28%	25%	27%	26%
Pre-tax income	136	272	151	134	133	92.4	170	148	157	143	141	118
Tax rate	16%	17%	12%	17%	20%	-11%	11%	15%	21%	24%	19%	19%
Net income	114	227	132	110	107	103	150	126	124	109	114	95.8
Net margin	18%	36%	21%	17%	17%	16%	24%	20%	20%	17%	18%	15%
Diluted EPS	$0.33	$0.66	$0.39	$0.34	$0.34	$0.34	$0.51	$0.45	$0.47	$0.43	$0.48	$0.42
Operating cash flow	256	200	176	231	274	214	154	260	302	235	204	238
Capital expenditure	9.4	10.0	9.2	5.9	4.1	3.3	0.1	2.0	8.4	10.5	1.2	3.3
Free cash flow	246	190	166	225	270	210	154	258	294	225	203	235
Buybacks	104	106	279	260	349	353	499	410	390	415	367	330
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 December 2024, filed 21 February 2025, accession 0001467623-25-000011: the filing on EDGAR. All of Dropbox, Inc.'s filings: EDGAR company page.

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