After falling below $16 in March, Dropbox (NASDAQ:DBX) closed at ~$22 after its earnings report posted on May 7. What did investors like about the collaboration and file-sharing services company? Its competitor Box (NYSE:BOX) also rallied. With Microsoft’s OneDrive and Google Drive out there, Dropbox runs in a very competitive market.
Dropbox posted its first quarterly GAAP profit for the first time. Revenue grew 18% Y/Y. Paying revenue topped 14.6 million, driven by a lower reliance on the freemium offering and the user need for premium storage.
Anyone who used Box and Dropbox will realize that Dropbox is a better solution. The company revamped the PC desktop app. The app offers powerful file searching capabilities and an easy way to create office documents in Word, Excel, and Sheet. It is nicely integrated with Microsoft Office and Google Docs.
Dropbox now has 600 million registered users. Notable is the 14.6 million paying users and 80% of its subscribers who use it for work. By building a more powerful collaboration tool, Dropbox is a more relevant tool for companies.
Investors have plenty of software stocks to consider. Adobe (NASDAQ:ADBE) or Okta (NASDAQ:OKTA) are growing as companies demand cloud solutions. Dropbox is becoming a more important, invaluable tool. This should end the downtrend in the stock.
