Dropbox rises on Q4 earnings beat

Yahoo Finance's Jared Blikre breaks down the latest quarterly earnings for Dropbox.

Video Transcript

RACHELLE AKUFFO: Welcome back to Yahoo Finance. We're going to be taking a look at what's happening with Dropbox's earnings. For that, let's turn it over to Yahoo Finance's Jared Blikre. Jared.

JARED BLIKRE: That's right. For the fourth quarter-- and I should say that Dropbox is up 7% in afterhours trading. But for the fourth quarter, adjusted EPS coming in at $0.41. That beats the Street's estimate by $0.04. And it's up from $0.28 a year ago, its GAAP EPS coming in at $0.32 and revenue nice beat here, coming in at $565 and 1/2 million. That's up 12% year over year, and that beats the Street estimate of $558.3 million.

Also, net cash provided by operating activities was $162.7 million and the free cash flow of $161.4 million for the fourth quarter. They said in their earnings announcement, we improved our non-GAAP operating margin by nearly 9 points, grew free cash flow by over 40% year over year, and delivered our first full year of GAAP profitability. Looking ahead to 2022, I'm excited about the opportunity we have had to help our customers organize their digital lives and deliver value to our shareholders, says the CEO.

Also want to make one note here. Bloomberg data says that there are five buys by the Street, three holds, and one sell. So again, nice beats on both the top and bottom lines for Dropbox. And let's get a chart of their performance. Since the IPO, you can see a nice spike there close to its IPO, but for the most part, really just filling in a rounded bottom here. Maybe a cup and handle in the making on a very long-term basis? Possibly. Guys.