The sale was executed under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell company stock. This particular plan was adopted by Timothy on May 15, 2024. Following the transaction, Timothy holds 403,764 shares in Dropbox (NASDAQ:DBX), including certain restricted stock awards and units subject to vesting conditions through February 2028. The company has shown strong momentum with a 34.7% price return over the past six months, while maintaining active shareholder-friendly policies through aggressive share buybacks. The company has shown strong momentum with a 34.7% price return over the past six months, while maintaining active shareholder-friendly policies through aggressive share buybacks.
The sale was executed under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell company stock. This particular plan was adopted by Timothy on May 15, 2024. Following the transaction, Timothy holds 403,764 shares in Dropbox, including certain restricted stock awards and units subject to vesting conditions through February 2028.
In other recent news, Dropbox announced a new share buyback program, authorizing the repurchase of an additional $1.2 billion in shares, adding to the existing $519 million remaining from previous buybacks. This move was acknowledged by BofA Securities, who maintained their Underperform rating on Dropbox. In addition, Dropbox secured a $2 billion loan, primarily arranged by Blackstone (NYSE:BX) Credit & Insurance, and initiated a significant workforce reduction of 20% during its Q3 2024 Earnings Call. Despite a slight year-over-year revenue increase of 0.9% to $639 million, Dropbox gained approximately 19,000 new paying users and reported a Non-GAAP net income of $190 million. The company is focusing more on its new AI-powered product, Dropbox Dash, and has projected its Q4 revenue to be between $637 million and $640 million, with a full-year forecast of $2.542 billion to $2.545 billion. However, due to severance costs from workforce reductions, the free cash flow expectations for 2024 have been lowered to $860 million to $875 million. Looking ahead, Dropbox expects its 2025 constant currency revenue to remain flat compared to 2024, with free cash flow projected at or above $950 million. These are the recent developments for Dropbox.
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