|Bid||19.72 x 3200|
|Ask||19.73 x 800|
|Day's Range||19.55 - 20.19|
|52 Week Range||14.55 - 24.14|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||246.50|
|Earnings Date||Nov 05, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||28.11|
(Bloomberg) -- Heather Bellini, a Goldman Sachs Group Inc. partner and top software and internet analyst, has been named chief financial officer at Deep Instinct, a cybersecurity software startup that is preparing for a future initial public offering.Deep Instinct, which aims to use artificial intelligence tools to prevent attacks, plans an IPO in 24 to 36 months, a spokesman said. Bellini, 50, has been a partner at Goldman since 2012, led its technology research group and has covered Alphabet Inc., Facebook Inc. and Microsoft Corp. Deep Instinct, which is based in Tel Aviv and New York, pointed to her experience covering the IPOs of more than 20 companies, including Facebook, Atlassian Inc., Dropbox Inc. and Slack Technologies Inc., as important given the company’s plans. “First priorities will be helping to put the financial and operational infrastructure in place to scale the business globally and set the company on the path to the public markets,” Bellini said. The company has raised more than $92 million from investors, including Nvidia GPU Ventures, Coatue Management and HP Tech Ventures, according to Crunchbase. Deep Instinct said it had a 400% increase in annual recurring revenue and a 300% increase in customers last year, while declining to provide specific numbers. This year, the company expects to double its annual recurring revenue. Its endpoint protection software uses deep learning techniques to predict and prevent malware from entering a system, or to detect it quickly and fix the issue. Bellini’s career as a technology analyst stretches back to the early 1990s and included stints at Oppenheimer, Lehman Brothers and International Strategy & Investment Group before arriving at Goldman. She is scheduled to start Jan. 1, replacing Naama Geva who will become Deep Instinct’s chief accounting officer.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
In the latest trading session, Dropbox (DBX) closed at $19.78, marking a -0.55% move from the previous day.
Since August, when it reported quarterly strong results, Dropbox (NASDAQ:DBX) gave up much of its gains. Dropbox stock fell in a downtrend, bottoming at below $19.00 last month. Source: Allmy / Shutterstock.com Dropbox posted annual recurring revenue grew 17% year-on-year to $1.93 billion in the second quarter. Paying users grew by 10% Y/Y, while gross margins improved from 75.8% to 79.2%. The company posted non-GAAP operating income of $96 million (per slide 27), more than double from last year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips If history is a guide, Dropbox will have trouble shaking off the high expectations from investors. The file-sharing service is easily replaceable from other service providers. 7 Big Tech Stocks to Buy for Blockchain and Crypto Exposure For example, Google (NASDAQ:GOOG) has Google Drive, which is free for its users, while Microsoft (NASDAQ:MSFT) offers OneDrive. A Closer Look at Dropbox Stock To stand out from the competition, Dropbox must prove to investors that its product developments will pay off. If HelloSign catches on with new and existing customers, margins and revenue will grow. HelloSign is a service that supports such features as signer attachments and advanced signing and reporting. At the Citi Global Technology Conference, Chief Accounting Officer Tim Regain highlighted the opportunities that HelloSign offers. For example, it has the chance to accelerate the uptake of HelloSign. Usage is up 25% relative to pre-Covid levels. So, as customers try out the service and experiment with the “smart workspace” feature, user engagement will continue climbing. Investors may assume revenue growth increasing over the next five years. In this 5-Year Discounted Cash Flow Growth model, consider this revenue trajectory: (USD in millions) Input Projections Fiscal Years Ending 19-Dec 20-Dec 21-Dec 22-Dec 23-Dec 24-Dec Revenue 1,661 1,900 2,204 2,579 3,043 3,651 % Growth 19.40% 14.40% 16.00% 17.00% 18.00% 20.00% EBITDA 94 190 264 335 426 621 % of Revenue 5.70% 10.00% 12.00% 13.00% 14.00% 17.00% Data model courtesy of finbox Readers may click on the finbox link to change the estimates and to come up with another fair value. Otherwise, a 4.5% perpetuity growth rate and the metrics shown below will value Dropbox stock at around $24.00. Metrics Range Conclusion Discount Rate 8.5% – 7.0% 8.00% Perpetuity Growth Rate 4.0% – 5.0% 4.50% Fair Value $19.30 – $41.45 $24.30 Key Drivers As previously mentioned, Smart workspace is a new feature. Dropbox added it last year and saw engagement rise by 100,000 users sequentially. As 450,000 of its business teams use the new Dropbox, they will figure out efficient ways to suit the work-from-home space. Tim Regan did not look at the other offerings as competition. “We don’t know where to find our various documents and whether it’s a cloud doc or a Microsoft doc or Adobe, Google, content is everywhere,” he said. “And we are constantly toggling between tools, whether it’s our Slack or Zoom or Atlassian or Dropbox, constantly bouncing around between tools.” From a practical sense, Dropbox is a “go between” for sharing content among companies and clients who are on a different platform. So long as one of the sharers has a Dropbox account, the recipient may get documents electronically. Investors need to look carefully at the company’s future average revenue per user (“ARPU” or “ARR”). As long as that metric grows, Dropbox, whose shares trade at unfavorable valuations, will have upside. Stock Industry S&P 500 Value Score 61 47 73 Price / Earnings 100+ 49.8 35.5 Price / Sales 4.7 9 2.6 Price / Free Cash Flow 20.8 37.3 21.9 Data courtesy of Stock Rover In the table above, Dropbox scores lower than the index on value, due to the price-to-earnings ratio. As profits expand, the multiple will decline. Your Takeaway Dropbox is an attractive, out of favor technology stock. The work from home trend is only accelerating and in the next few quarters, the company’s sales will grow as a result. Disclosure: On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. More From InvestorPlace Forget The Election… Pick These Stocks for the Win in 2021 Why Everyone Is Investing in 5G All WRONG America’s #1 Stock Picker Reveals His Next 1,000% Winner Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company The post There’s Just Too Much to Love About Dropbox Stock at These Levels appeared first on InvestorPlace.