“We’re moving toward a metaverse. I’m really excited about that vision,” Drew Houston, CEO of Dropbox said.
“Where Dropbox fits in if you’re working in that type of environment or in the metaverse, you need things. So for your digital content, Dropbox could help you and that’s where we’re headed. It’s very early days. It’s a long journey, but it’s exciting.”
“Our strength is in the content, which is helping you get your documents into that virtual world. Our infrastructure allows you to create the document or presentation you want to present. So we certainly integrate with the metaverse,” Houston said. “We want to help you get your data into and out of your Dropbox and to the metaverse and vice versa, so that everyone can be in the same virtual room and see the same content.”
Dropbox produced very strong results in the third quarter even without the metaverse.
Due to increased demand for storage and networking services during the Covid-19 pandemic, total revenue grew 12.9 percent year over year and exceeded management’s guidance. Recurring revenue increased 12 percent to $2.2 billion. Paid users rose from 15.49 million to 16.49 million.
By 2024, the company expects to generate $1 billion in free cash flow. The company reportedly had $2 billion in cash at the end of the third quarter.
In Friday’s trading, Dropbox shares fell about 7 percent as investors took profits after the news release. In Houston’s opinion, market volatility on Dropbox earnings days is a normal part of the day, so the one-day drop was not surprising.
Analysts who were bullish on Dropbox before the earnings release have maintained their views despite the market’s reaction.
According to a William Blair analyst, Jason Ader, Dropbox’s technology stickiness is underrated. Ader reiterated an “Outperform” rating for Dropbox.
For MetaNews.