On Thursday, Dropbox announced that its COO Dennis Woodside was stepping down and his successor is not being named yet.
Dropbox stock rose initially and then dropped by over 10% after it also released earnings that were better than had been expected for its second quarter.
Per share earnings reached 11 cents versus analyst expectations of 6 cents. Revenue finished the quarter at $339.2 million while analysts were expecting $330.9 million.
Woodside became the COO of Dropbox in April of 2014 and prior to that spent two years as the Motorola Mobility CEO. He was also president of Americas and a Google senior vice president. Google is one of the biggest competitors Dropbox has in collaboration markets and cloud storage, along with Microsoft and Apple.
Woodside started with Dropbox during a time when the company was balancing free users’ growth and the adoption of big businesses. Currently, the company has over 500 million registered users and 1,800 employees.
Woodside will work through September 4, and remain an advisor until the end of this year, said the company during its conference call with Wall Street analysts.
Revenue at Dropbox grew by 27% during the second quarter in comparison to the same quarter one year ago. It had paying users of 11.9 million during the quarter, which was an increase of 20% compared to the same quarter in 2017. Dropbox saw growth in paid users jump 69% during the quarter.
Net cash taken in from its operating activities during the quarter reached $111.8 million, which was below analyst expectations of $119.3 million.
During its call with analysts, Dropbox released its guidance for the third quarter that beat estimates. The company is expecting to generate revenue of between $350 million and $353 million for that three=month period. Analysts were expecting guidance to be $345.8 million for revenue.
The company raised guidance for its full year, and is now expecting between $1.36 billion and $1.372 billion of revenue.
Immediately after the guidance was released, shares of Dropbox fell even more, and at one point traded over 11% below the price at closing.
Shares of Dropbox are up over 20% from its March 23 closing price, which is the first day it traded. Thursday during regular trading hours shares were up to 10% above the closing price of the previous day.