Dropbox shares rise after upbeat results, share buyback plan

Dropbox Inc on Thursday reported a better-than-expected quarterly profit, raised its outlook for operating margin and announced a US$600 million share buyback, sending its shares up 11per cent in trading after the bell.

The company raised its operating margin target between 28per cent and 30per cent, which it expects to achieve by 2024, up from its initial range of 20per cent to 22per cent."The big story is the US$600 million buyback, which is a clear indication that Dropbox views their stock as undervalued and that management is bullish on the future of the company," said Rishi Jaluria, an analyst from brokerage D.A. Davidson & Co.

The company, which counts National Geographic and Spotify Technology SA among its customers, said it had 14.3 million paid subscribers at the end of the fourth quarter.Advertisement

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