(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.