Dropbox, Inc. (NASDAQ:DBX) Q2 2024 Earnings Conference Call August 8, 2024 5:00 PM ET

Company Participants

Peter Stabler - IR
Andrew Houston - Co-Founder & CEO
Timothy Regan - CFO

Conference Call Participants

Luv Sodha - Jefferies
Steven Enders - Citigroup
Kash Rangan - Goldman Sachs
Mark Murphy - JPMorgan

Operator

Good afternoon, ladies and gentlemen, and thank you for joining Dropbox's Second Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] As a reminder, this conference call is being recorded and will be available for replay from the Investor Relations section of Dropbox's website following this call.

I will now turn the call over to Peter Stabler. Please go ahead.

Peter Stabler

Thank you. Good afternoon, and welcome to Dropbox's second quarter 2024 earnings call. Before we get started, I'd like to remind you that our remarks today will include forward-looking statements, such as our financial guidance and expectations, including our long term objectives and forecast for our third quarter and fiscal year 2024 and our expectations regarding our revenue growth, profitability, operating margin and free cash flow, as well as our expectations regarding our business, assets, products, strategies, technology, employees, users, demand and the macroeconomic environment.

These statements are subject to risks and uncertainties that could cause actual results to differ materially. They are also based on assumptions as of today, and we undertake no obligation to update them as a result of new information or future events. Factors and risks that could cause our actual results to differ materially from these forward looking statements are set forth in today's earnings release and in our quarterly report on Form 10-Q filed with the SEC.

We'll also discuss non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles. A reconciliation of GAAP and non-GAAP results is provided in our earnings release and on our website at investors.dropbox.com.

I'll now turn the call over to Dropbox's Co-Founder and CEO, Drew Houston.

Andrew Houston

Thanks, Peter, and good afternoon, everyone. Welcome to our Q2 2024 earnings call. Joining me today is Tim Regan, our Chief Financial Officer. I'll first share our business and product highlights from the quarter, and then Tim will review our Q2 financial results and provide an updated outlook for the remainder of the year.

I'll start with our business performance. Revenue for the quarter was slightly better than we anticipated with growth in self-serve individual plans offsetting continued challenges within our Teams business. Net new paying user growth improved quarter-over-quarter, but we expect some volatility to return in the second half of the year. Within our individual SKUs, we're encouraged for the performance of our essentials product, which posted strong growth in the quarter.