Users seem to be receptive to this move, with Dropbox having a 4.7 star rating on the App Store, and on TrustRadius, mobile-related comments are almost all positive. With both average mobile screen time and smartphone penetration expected to continue increasing over the next few years, I believe that improving the mobile app functionality and ease of use is a positive move from Dropbox. Therefore, these enhancements were in response to the needs of the users, which is also aligned with increasing mobile usage in general. The rationale of this focus was due to the fact that Dropbox noticed an increasing amount of mobile usage for its services, particularly for sharing documents. According to Houston, Dropbox has improved upload speeds and reliability, increased visibility around sharing and improved the ease of access for non-Dropbox users. To kick things off, Dropbox has dedicated a good amount of energy this year to improve the usability of its mobile app. In this article, I will take a deeper dive into the main takeaways I have obtained and elaborate why Dropbox is on the right direction, and why the stock is very attractive at today’s prices. However, after revisiting the financials and earnings call, I believe that contrary to market sentiments, Dropbox is in a better position than it was a few months ago, both financially and fundamentally. Despite beating estimates, there have been negative sentiment around the stock which is likely attributed to reasons such as slowing revenue growth and greater expectations regarding HelloSign and DocSend’s integration into Dropbox’s ecosystem. However, Dropbox was trading around the $30 level back then, which I viewed as very close to its intrinsic value.įast forward to today, Dropbox's share price has seen a rather huge 20% drop since the company's 3Q21 earnings call. At that point, I established that Dropbox was a strong free cash flow generative company with a unique business model, and a simple but effective business strategy. Drew Angerer/Getty Images News An Update On Dropboxīack in July, I wrote an article analysing the business and fundamentals of Dropbox ( NASDAQ: DBX).
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