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Cloud file-sharing company Dropbox Inc. has gotten off to a solid start in the first quarter of its fiscal 2021, beating expectations on both profit and revenue.
The company reported a profit before certain costs such as stock compensation today of 35 cents per share on revenue of $511.6 million, up 12% from the same period one year ago. That comfortably exceeded Wall Street’s model of 30 cents per share in earnings and $505.18 million in revenue.
Dropbox Chief Executive Drew Houston (pictured) waxed about the company’s various achievements during the quarter.
“We kicked off the year with a profitable Q1, along with strong revenue growth and free cash flow,” Houston said in prepared remarks. “We welcomed DocSend to the team, saw great momentum with HelloSign, and continued to make meaningful progress against our 2021 priorities.”
Dropbox (
DBX) - Get Report shares rose after the file-management major said it would purchase secure-document-sharing provider Docsend for $165 million cash.
At last check Dropbox shares were trading almost 4% higher at $24.70.
Both San Francisco-based companies, Dropbox and Docsend also have complementary functions. Dropbox has a cloud-storage focus and Docsend serves as a method of securely sharing documents between users.
Docsend will join the family of Dropbox productivity brands, which also includes HelloSign, a service that enables users to draft and confirm documents with electronic signatures.
“We’ll be able to offer a full suite of secure, self-serve products to help [users] manage critical document workflows from start to finish,” Dropbox Co-Founder and Chief Executive Drew Houston said in a statement.
Dropbox lays off 11% of its workforce as COO departs
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Dropbox Inc. is laying off about 11% of its workforce, or 315 employees, in a move that Chief Executive Drew Houston described as “painful, but necessary.”
Houston (pictured) notified employees about the cuts in an internal memo that was published today as part of a regulatory filing. In the same filing, Dropbox told shareholders that Chief Operating Officer Olivia Nottebohm is stepping down.
Houston wrote in the memo that “our recent decisions regarding our new leadership structure and remote work policy have set us on the right path, and now we need to make sure our teams and investments also line up.” The CEO pointed to the company’s switch to remote working as one factor behind the workforce reduction. “We require fewer resources to support our in-office environment, so we’re scaling back that investment and redeploying those resources to drive our ambitious product roadmap,