San Francisco – Dropbox, Inc. (NASDAQ:), a $9.5 billion cloud storage company with an impressive gross profit margin of 82% according to InvestingProsaw its CFO, Regan Timothy, recently sell part of his holdings 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, with the total transaction amounting to approximately $75,936.
The sale was executed as part of a predetermined Rule 10b5-1 trading plan, which Timothy adopted on May 15, 2024. This type of trading plan allows insiders to set up a predetermined timeline for selling stock, helping them avoid potential accusations of stock selling. Insider trading. The stock has shown strong momentum, rising more than 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 grants and units subject to vesting schedules through February 15, 2028. If Timothy ceases to be a Service Provider prior to these dates, any unvested shares will be voided by Dropbox.
This transaction is part of our executives' routine financial planning 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 major strides in its financial and strategic alignment. The company recently announced a new stock buyback program, allowing for the addition of $1.2 billion in stock, on top of the remaining $519 million from previous buybacks. The move, which BofA Securities recognized 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 took out a $2 billion loan, primarily arranged by Blackstone (NYSE:) Credit & Insurance, and began a significant 20% workforce reduction. This reduction is aimed at focusing more on the development of its new AI-powered product, Dropbox. Despite a slight year-over-year increase in revenue of 0.9% to $639 million, Dropbox was able to attract nearly 19,000 new paid users and generated non-GAAP net income of $190 million.
In terms of future expectations, Dropbox expects its fourth-quarter revenue to range between $637 million and $640 million, with full-year forecasts ranging from $2.542 billion to $2.545 billion. However, due to severance costs resulting from workforce reductions, the 2024 free cash flow forecast was reduced to $860 million to $875 million. Looking ahead, Dropbox expects its 2025 constant currency revenue to remain flat compared to 2024, with an expected expansion of non-GAAP operating margin of about 150 basis points and free cash flow expected at $950 million or more.
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