Dropbox ($DBX) has quietly put in a stellar year for both its stock performance and business operations. Its stock is up 30% YTD compared to gains of 13% for the S&P 500 and 6% for its closest competitor, Box ($BOX).
What's its Chart Telling us?
- Since September 2018, Dropbox has traded a $16-$26 range. Now, price is bumping up against the $24-$26 resistance level.
- If price fails to eclipse $26, we could see a move towards the lower end of the range near $17.50.
- I'm looking for a move above the $24-$26 resistance level and a retest of the post-IPO high at $43.50. That's a 67% upside move from $26.
Q3 2020 highlights
|Q3 2020||Q3 2019||YoY change (%)|
|GAAP gross margin||78.8%||75.5%||N/A|
|GAAP operating margin||6.2%||(4.3)%||N/A|
|GAAP net income||$32.7M||($17.0)M||N/A|
|Free cash flow||$187.0M||$102.5M||82%|
- ARR = annual recurring revenue
- ARPU = Average revenue per paying user
Paying users and ARPU (bolded) are key metrics Dropbox uses to measure the health of its business.