Dropbox released its 10-K report Friday, causing the stock to tumble on the market. Dropbox, Inc. provides a content collaboration platform globally, serving customers in various industries. The company offers free sign-ups and paid subscription plans for individuals, families, teams, and organizations. Dropbox, Inc. was formerly known as Evenflow, Inc. and changed its name to Dropbox, Inc. in October 2009. The company was incorporated in 2007 and is headquartered in San Francisco, California. Following this announcement, the company's shares have moved -22.9% on the market, and are now trading at a price of $25.08.
In its annual report, Dropbox reported that its total annual recurring revenue (Total ARR) for the fiscal year ended December 31, 2023, was $2,523 million, representing a slight increase from the previous year's Total ARR of $2,514 million. However, when revalued using exchange rates set at the beginning of fiscal 2024, the Total ARR at the end of fiscal 2023 would be $2,540 million. The company also disclosed an increase in paying users, reaching 18.12 million paying users. Additionally, Dropbox highlighted challenges related to macroeconomic factors, including the impact of the COVID-19 pandemic, which led to a shift to a Virtual First work model and subsequent impairment charges related to real estate assets. Furthermore, the company incurred expenses related to a reduction in its global workforce by approximately 16% to streamline its team structure in support of long-term growth and profitability objectives. For more detailed information, the company's full 10-K submission can be found here.
