Dropbox Expects Q3 Results To Be At Least In-Line With Guidance; To Cut 20% Of Global Workforce

Dropbox

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(RTTNews) - Dropbox, Inc. (DBX) Wednesday announced that it expects its third-quarter financial results to be in-line with or above its guidance ranges for revenue, constant currency revenue, and adjusted operating margin.

Dropbox also announced a reduction of its global workforce by approximately 20% to streamline its team structure to better align with its long-term growth initiatives and profitability objectives.

Dropbox estimates that it will make total cash expenditures of around $63 million to $68 million in connection with the reduction in force, primarily consisting of severance payments, employee benefits and related costs.

Severance payments will include the pro rata amount of the fiscal year 2024 annual employee bonus amounts through October 30, 2024, for which the company has accrued compensation expense.

The company expects to recognize $47 million to $52 million of incremental expense related to the aforementioned severance, benefits and related costs.

While reporting its second quarter results, the company has issued a third-quarter outlook of $635 million to $638 million and operating margin of about 32%.