SAN FRANCISCO—Dropbox, Inc. (NASDAQ: ), a $9.5 billion cloud storage company with impressive 82% gross profit margins according to InvestingProsaw its chief financial officer, Regan Timothy, recently sell some of his stake in the company. According to a filing with the Securities and Exchange Commission, Timothy sold 2,500 shares of Dropbox Class A Common Stock on January 15, 2025. The shares were sold at a weighted average price of $30.3744, for a total transaction amounting to approximately $75,936.
The sale was made as part of a Rule 10b5-1 predetermined trading plan, which Timothy adopted on May 15, 2024. This type of trading plan allows insiders to set a predetermined schedule for selling shares, helping them avoid potential insider trading charges. The stock has shown strong momentum, gaining over 30% in the past six months.
Following the transaction, Timothy retains ownership of 401,264 shares, some of which are in the form of restricted stock awards and units that are subject to a vesting schedule until February 15, 2028. If Timothy ceases to be a service provider prior to those dates, any unvested Dropbox will cancel the shares.
This transaction is part of routine financial planning for executives and should not be construed as a reflection of Timothy’s view of the company’s future performance.
In other recent news, Dropbox has made significant progress in its financial and strategic alignment. The company recently announced a new share buyback program, authorizing an additional $1.2 billion in shares, adding to the existing $519 million remaining from previous buybacks. The move, which BofA Securities hailed as a positive step toward returning capital to shareholders, brings the total repurchase authorization to approximately 19% of Dropbox’s current market capitalization.
Dropbox also secured a $2 billion loan, primarily arranged by Blackstone (NYSE: ) Credit & Insurance, and initiated a significant 20% workforce reduction. The downsizing is meant to focus more on the development of its new AI-powered product, Dropbox. Despite a slight year-over-year revenue increase of 0.9% to $639 million, Dropbox managed to acquire approximately 19,000 new paying users and reported GAAP net income of $190 million.
Looking ahead, Dropbox expects fourth-quarter revenue of between $637 million and $640 million, with a full-year forecast of $2.542 billion to $2.545 billion. However, due to severance costs due to workforce reductions, free cash flow expectations for 2024 were reduced to $860 million to $875 million. Looking ahead, Dropbox expects constant currency revenue in 2025 to be flat compared to 2024, with non-GAAP operating margin expected to increase by approximately 150 basis points and free cash flow projected at or above $950 million.
This article was generated with the help of AI and reviewed by an editor. See our T&C for more information.
