Home / News & Analysis / Dropbox announces COO Dennis Woodside is leaving as its second quarterly check-in with Wall Street once again outperforms

Dropbox announces COO Dennis Woodside is leaving as its second quarterly check-in with Wall Street once again outperforms

Back when Dennis Woodside joined Dropbox as its chief operating officer more than four years ago, the company was trying to justify the $10 billion valuation it had hit in its rapid rise as a Web 2.0 darling. Now, Dropbox is a public company with a nearly $14 billion valuation, and it once again showed Wall Street that it’s able to beat expectations with a now more robust enterprise business alongside its consumer roots.

Dropbox’s second quarter results came in ahead of Wall Street’s expectations on both the earnings and revenue front. The company also announced that Dennis Woodside, who has been the chief operating officer for more than four years, will be leaving the company. Woodside joined at a time at Dropbox when it was starting to figure out its enterprise business, which it was able to grow and transform into a strong case for Wall Street that it could finally be a successful publicly-traded company. The IPO was indeed successful, with the company’s shares soaring more than 40% in its debut, so it makes sense that Woodside has essentially accomplished his job by getting it into a business ready for Wall Street.

The stock exploded in extended trading by rising more than 7%, though even prior to the market close and the company reporting its earnings, the stock had risen as much as 10%. Following that spike, things have leveled off a bit, with it up around 2%. Dropbox is one of a number of SaaS companies that have gone public in recent months, including DocuSign, that have seen considerable success. While Dropbox has managed to make its case with a strong enterprise business, the company was born with consumer roots and has tried to carry over that simplicity with the enterprise products it rolls out, like its collaboration tool Dropbox Paper.

Here’s a quick rundown of the numbers:

  • Q2 Revenue: Up 27% year-over-year to $339.2 million, compared to estimates of $331 million in revenue
  • Q2 GAAP Gross Margin: 73.6%, as compared to 65.4% in the same period last year
  • Q2 adjusted earnings: 11 cents per share compared, compared to estimates of 7 cents per share
  • Paid users: 11.9 million paying users, up from 9.9 million in the same quarter last year
  • ARPU: $116.66, compared to $111.19 same quarter last year

So, not only is Dropbox able to show that it can continue to grow that revenue, the actual value of its users is also going up. That’s important, because Dropbox has to show that it can continue to acquire higher-value customers — meaning it’s gradually moving up the Fortune 100 chain and getting larger and more established companies on board that can offer it bigger and bigger contracts. It also gives it the room to make larger strategic moves, like migrating onto its own architecture late last year, which in the long run could turn out to drastically improve the margins on its business.

The company is still looking to make significant moves in the form of new hires, including recently announcing that it has a new VP of product and VP of product marketing, Adam Nash and Naman Khan. Dropbox’s new team under CEO Drew Houston are tasked with continuing the company’s path to cracking into larger enterprises, which can give it a much more predictable and robust business alongside the average consumers that pay to host their files online and access them from pretty much anywhere.

Dropbox had its first quarterly earnings check-in and slid past the expectations that Wall Street had, though its GAAP gross margin slipped a little bit and may have offered a slight negative signal for the company. But since then, Dropbox’s stock hasn’t had any major missteps, giving it more credibility on the public markets — and more resources to attract and retain talent with compensation packages linked to that stock.

Check Also

Nvidia’s new Turing architecture is all about real-time ray tracing and AI

In recent days, word about Nvidia’s new Turing architecture started leaking out of the Santa Clara-based company’s headquarters. So it didn’t come as a major surprise that the company today announced during its Siggraph keynote the launch of this new architecture and three new pro-oriented workstation graphics cards in its Quadro family. Nvidia describes the new Turing architecture as “the greatest leap since the invention of the CUDA GPU in 2006.” That’s a high bar to clear, but there may be a kernel of truth here. These new Quadro RTx chips are the first to feature the company’s new RT Cores. “RT” here stands for ray tracing, a rendering method that basically traces the path of light as it interacts with the objects in a scene. This technique has been around for a very long time (remember POV-Ray on the Amiga?). Traditionally, though, it was always very computationally intensive, though the results tend to look far more realistic. In recent years, ray tracing got a new boost thanks to faster GPUs and support from the likes of Microsoft, which recently added ray tracing support to DirectX. “Hybrid rendering will change the industry, opening up amazing possibilities that enhance our lives with more beautiful designs, richer entertainment and more interactive experiences,” said Nvidia CEO Jensen Huang. “The arrival of real-time ray tracing is the Holy Grail of our industry.” The new RT cores can accelerate ray tracing by up to 25 times compared to Nvidia’s Pascal architecture, and Nvidia claims 10 GigaRays a second for the maximum performance. Unsurprisingly, the three new Turing-based Quadro GPUs will also feature the company’s AI-centric Tensor Cores, as well as 4,608 CUDA cores that can deliver up to 16 trillion floating point operations in parallel with 16 trillion integer operations per second. The chips feature GDDR6 memory to expedite things, and support Nvidia’s NVLink technology to scale up memory capacity to up to 96GB and 100GB/s of bandwidth. The AI part here is more important than it may seem at first. With NGX, Nvidia today also launched a new platform that aims to bring AI into the graphics pipelines. “NGX technology brings capabilities such as taking a standard camera feed and creating super slow motion like you’d get from a $100,000+ specialized camera,” the company explains, and also notes that filmmakers could use this technology to easily remove wires from photographs or replace missing pixels with the right background. On the software side, Nvidia also today announced that it is open sourcing its Material Definition Language (MDL). Companies ranging from Adobe (for Dimension CC) to Pixar, Siemens, Black Magic, Weta Digital, Epic Games and Autodesk have already signed up to support the new Turing architecture. All of this power comes at a price, of course. The new Quadro RTX line starts at $2,300 for a 16GB version, while stepping up to 24GB will set you back $6,300. Double that memory to 48GB and Nvidia expects that you’ll pay about $10,000 for this high-end card.

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.