Due to its rising demand for function, the Cloud storage services company Dropbox Inc. announced its increasing quarterly performance amid the pandemic’s impact on most business enterprises, shifting employees to work from home.
Dropbox’s second-quarter fiscal’s results included an increase of 16% from the same timeframe last year, which totals $467.4 million.
“Our Q2 results are a testament to our teams’ hard work supporting our customers in this new environment… Over the past quarter, we introduced a number of products to help facilitate distributed work, addressing both team and personal use cases. With solid revenue growth, robust margin expansion, and continued GAAP profitability, we remain confident in the resiliency of our business.”Dropbox Co-founder and Chief Executive Officer Drew Houston
Dropbox provides and offers a cloud-based software application that is being used by individuals or companies to save files online and share over the internet.
The demand for its function has developed since the new guidelines were imposed in compliance with the new standard protocols.
Moreover, paying users rose at 15.0 million, compared to last year’s quarter resulting in 13.6 million. The average income per paying user moved into $126.88 from $120.48.
On the other hand, the company also published that its official Chief Financial Officer, Ajay Vashee will step down after more than eight years of leading the organization.
“Being part of Dropbox has been an amazing experience, and I’m so proud of everything we’ve accomplished together… We’ve grown from a 100 employee private start-up when I first started, to a nearly 3,000 employee profitable public company. Thank you to Drew and the management team for the privilege of being part of the company’s incredible journey.”Ajay Vashee
In September, Vashee will depart the company and be replaced by Tim Regan, the company’s current Chief Accounting Officer.
However, according to Yahoo Finance, the departure of CFO Ajay Vashee is a significant concern for several investors. The recognition of his departure sent its assets dropping in extensive negotiations.
Dropbox posted reliable Q2 financial results. However, since the start of this month, the stock is down more than 12% as the market seems to be weighing heavily on its CFO’s departure.
The financial forecast of Dropbox was respectable. But several investors are ‘skeptical of the file hosting service company’ due to the fierce competition between other companies with similar services such as Google Drive and Microsoft One Drive.