- **Revenue Beat**: Q3 revenue $634M, up 70bps YoY, driven by retention.
- **Dash Momentum**: 60% weekly active users, self-serve launch at $19/month.
- **Financial Strength**: Operating margin 41.1%, net income $197M, EPS $0.74.
- **Guidance Raise**: FY2025 revenue $2.511B, free cash flow $1B+.
- **Strategic Moves**: M&A for AI growth, $1.5B buyback program.

**【CEO Summary Section】**
- Q3 revenue of $634 million exceeded guidance, driven by strong retention across individual and self-serve teams plans.
- **Dash Product Highlights**: 
  - 60% of weekly active users are using Dash at least 2 days a week, indicating daily workflow integration.
  - Self-serve launch at $19/user/month with a 50% discount for existing customers.
  - Integration into Dropbox FSS enables natural language search and content organization.
- **Core FSS Improvements**: 
  - Highest ever CSAT scores for individuals business.
  - New tools for trial conversion and IT admin dashboards for data management.

**【CFO Financial Commentary】**
- **Q3 Financials**: 
  - Total revenue: $634 million (down 70bps YoY).
  - ARR: $2.536 billion (down 1.7% YoY).
  - Operating margin: 41.1% (up 490bps YoY).
  - Net income: $197 million (up 3% YoY).
  - EPS: $0.74 (up 23% YoY).
- **Q4 Guidance**: 
  - Revenue: $626-629 million.
  - Operating margin: 37%.
- **FY2025 Outlook**: 
  - Revenue: $2.511 billion (midpoint up $18 million).
  - Operating margin: 40% (up 100bps).
  - Free cash flow: $1 billion+.
- **Share Repurchases**: 
  - $390 million in Q3, $1.5 billion buyback program remaining.

**【Q&A Key Highlights】**
- **Dash Adoption**: 
  - 60% weekly active users demonstrate strong engagement.
  - Focus on SMBs with self-serve model, offsetting managed sales downselling.
- **M&A Strategy**: 
  - Disciplined approach with acquisitions like Mobius Labs to enhance AI capabilities.
- **Consumer Behavior**: 
  - Stable trends with ongoing price sensitivity, no major macro shifts.
- **Integration Strategy**: 
  - Seamless API access with major platforms, maintaining interoperability.
- **Pricing Strategy**: 
  - $19/month self-serve Dash, 50% discount for Dropbox users.


DBX

DBX fundamentals

You can ask Aime