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Dropbox earnings beat estimates; shares drop after COO departure announcement

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(FinancialPress) — Dropbox Inc. (DBX) released its Q2 earnings report, and earnings handily beat industry estimates. More and more of its users are opting in for the company‘s paid service. However, any effect of the positive results was offset by the news of COO Dennis Woodside‘s upcoming departure.

The cloud storage service saw its revenue rise by an impressive 27% to reach $339.2 million. Analyst projections averaged at about $331 million, according to a Bloomberg report. Profits reached 11 cents per share – noticeably over the projected 7 cents analysts expected.

Its paying user base grew to a total of 11.9 million – a 2 million increase year-on-year. The average revenue perceived per customer was up 5% YoY, to reach $116.66.

However, the news that most impacted the company‘s stock was that of Woodside‘s departure. The uptrend caused by the positive results soon was reversed, suspectedly due to the announcement of the COO‘s departure. Woodside was critical to Dropbox‘s successful move from private to public company back in March. He has been a part of the company since 2014.

Woodside will remain COO until September, and will fulfill an advisor role afterwards for the rest of 2018. During the advisory period, Dropbox will promote two of its current vice presidents to oversee operations – but will not search for a replacement for the high-executive role.

Woodside released a statement in which he declared that “it‘s been an honor to work with such exceptionally talented people and help grow and scale our business“.

Late trading saw Dropbox shares fall 4.2%, to reach $33 each.

Dropbox is a cloud storage company that allows clients to share and synchronize files. It generates revenue by selling additional space to its customers for a fee. The basic, free Dropbox service allows for up to 2GB of storage. Notable competitors in the space include Google Drive and Box Inc. Its shares have risen approximately 64% over 2018.

Ruben is a South American writer who focuses on the state of the cryptocurrency, cannabis and tech industries worldwide.

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EVIO Opens Additional Cannabis Revenue Streams with Keystone Lab’s Expanded Approval in Canada

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(FinancialPress) – Coming October 17, the watershed moment of legal marijuana across Canada is closing in quickly. The anticipation is providing a positive effect on stocks in the industry after months of stagnation. It is also leading to important changes for select companies, such as expanded licensing for Edmonton’s Keystone Labs by Health Canada, widening the opportunities for the lab to generate revenue and create new products.

Keystone Labs is 50% owned by EVIO Canada, a unit of EVIO Inc. (OTCQB:EVIO), one of the largest public companies in North America providing cannabis testing and scientific research for the regulated cannabis industry. Gathering momentum from the updraft in cannabis stocks lately, shares of EVIO have risen over 60% from an 8-month low in the last four weeks.

On Monday, EVIO said that Health Canada approved an amendment to Keystone’s existing Dealer License that expanded the lab’s product and service offerings. With the modification, Keystone can manufacture, process, package, label, and sell cannabis related products to Licensed Producers (LPs) and Licensed Distributors (LDs) throughout Canada.

There are several other important distinctions that come with the approval, including allowing the lab to work with Canadian LPs as a contract manufacturer of approved cannabis products, as well as perform R&D activities to develop new extraction methods and product formulations.

Furthermore, Keystone can now legally transport or send cannabis in many forms, ranging from experimental raw materials to finished goods, to customers and partners across the country. This distinction provides Keystone with a competitive edge and avenue for vertical growth, as there are only a select group of Canadian labs with this logistic capacity.

The approval “will allow Keystone Labs to partner with other third-party test labs to outsource testing that we currently offer our clients and vice versa,” said the company in a press release on the expanded capabilities.

EVIO’s CEO William Waldrop added, “Being able to manufacture and start product development will accelerate our growth by building strategic partnerships and in anticipation of Canadian legalization. This will generate additional revenue for Keystone Labs along with its analytical testing and R&D.”

Fact is that Canada is gearing-up to initiate the global cannabis market by becoming the first industrialized country to legalized adult-use of the plant. The change in legislation has set the cannabis industry on fire again, as measured by the Horizons Marijuana Life Sciences Index ETF (TSX: HMMJ) recently topping $1 billion in assets and U.S.-listed ETFMG Alternative Harvest ETF (NYSE American: MJ) being the best performing exchange traded fund in August (and still rising).

Against this backdrop, EVIO Labs continues to position itself as a North American leader in the lab space, a market that remains underappreciated as an essential component of the industry.

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Amazon CEO wants employees to ‘wake up every morning terrified’

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(FinancialPress) — Famed Amazon CEO Jeff Bezos knows a thing or two about the pitfalls of complacency, both in professional and personal life. That‘s what led him to use fear as a motivator in the workplace – both in the good and bad times. He feels that both work ethic and innovative thinking within his teams can be bolstered with it as a catalyst.

In a 1999 shareholder letter, Bezos revealed some of his methods: “I constantly remind our employees to be afraid, to wake up every morning terrified. Our customers have made our business what it is, and we consider them to be loyal to us – right up until the second that someone else offers them a better service.”

Terrifying his workers was by no means his goal, though. He rather aimed to make them fear not being the best at what they do anymore, gunning for “constant improvement, experimentation and innovation in every initiative“, in order to ensure that Amazon would remain competitive as time went by.

Motivating through fear is not a tactic used only by the Amazon founder. Tim Ferris, the podcast host and best-selling author is another proponent of using it as a motivator. His perspective consists of writing down the fears he wants to work on, identifying the worst-case scenario for it and figuring out a way to prevent it. Ferris attributes some of his biggest wins to sticking to this method – as it helped him get conditioned to failure in pursuit of success.

Another prominent CEO who subscribes to this method is PepsiCo‘s Indira Nooyi. She was the mind behind the company‘s shift to healthier products. That, along with the redesign of many of their packaged goods, led to a full-scale transformation of the company in the public eye, and made her one of the biggest names in the food and beverages sector.

When interviewed by Bloomberg in 2016, Nooyi revealed that fear was one of her greater motivators during the difficult transition period. “I’m always afraid that if I fail, I may have to go back to something that I don’t want to,” she said. “That fear always motivates me and so I drive myself to be better and better at my job everyday.”

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Trump mulls major changes to earnings report requirements

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(FinancialPress) — President Donald Trump has revealed that the model of quarterly financial reporting might be on its final days.

After a meeting with prominent US business leaders, he requested the US Securities and Exchange Commission to start exploring possible avenues for new, better reporting.

The move is backed by several business leaders. The likes of JPMorgan‘s Jamie Dimon, and legendary investor Warren Buffet have chimed in on the subject. In the past, they have been two of the major voices requesting change in the way that companies report their earnings guidances each quarter.

Trump‘s idea hinges on semestral reporting. So, if he is to have his way, companies would report every six months.

“In speaking with some of the world’s top business leaders I asked what it is that would make business (jobs) even better in the U.S,” Trump tweeted. “‘Stop quarterly reporting & go to a six month system… that would allow greater flexibility & save money. I have asked the SEC to study!”

While several other countries already require earnings reports to be revealed only every six months, listed US companies must do so every three.

Among these countries, the UK stands out as a case study. Companies in the European nation are not required to report every quarter – but 90% of them still do so.

JPMorgan‘s Jamie Dimon and Berkshire Hathaway‘s Warren Buffet posted a a joint letter published in The Wall Street Journal in June. In it, they argue against the continuity of quarterly reports, citing an ongoing “short-termism“ in companies that abide by them.

They believe that quarterly earnings report lead to companies adopting short-term strategies for financial performances that please investors at the expense of longer-term strategy and investment.

“We are encouraging all public companies to consider moving away from providing quarterly earnings-per-share guidance,” Buffett and Dimon wrote in the letter, co-signed by prominent CEO group The Business Roundtable.

“In our experience, quarterly earnings guidance often leads to an unhealthy focus on short-term profits at the expense of long-term strategy, growth and sustainability.”

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