Second, we'll continue to invest in and expand our new product pipeline beyond the core experience. On a revenue basis, our individual revenue mix grew in 2020 as a result of the Plus pricing initiative. The improvement in our gross margin is primarily a result of unit cost efficiency gains with our infrastructure hardware. Thank you, Drew. So I mean, we start with customer value, just building a great product experience, adding more. I mean, for context, we did have a brand campaign in Q4 highlighting Dropbox as a solution for teams at work and for businesses. Our non-GAAP net income also excludes net gains and losses on equity investments and includes the income tax effect of the aforementioned adjustments. Dropbox, along with Paper and the Creative Tools Add-On, will be a critical part of 1000heads' creative workflows. Total revenue for 2020 was $1.914 billion, representing 15% year-over-year growth. We have three company priorities for the year, and I'd like to walk you through each one with a little more detail. Your line is now open. [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. So we're relatively less impacted than other sectors for sure. So in addition to being able to store and share and access your content, being able to handle the e-signature workflows and more broadly document workflows, is a natural adjacency for us. [Operator instructions] Our first question comes from Mark Murphy with J.P. Morgan. And there's a bit of a trade-off there. You guys gave, I believe, a value of 90% around the time of IPO and update of 95% at the analyst day in 2019, I believe. It's very fragmented and distracting and overwhelming experience now. So when you look at some of the things we launched last year, we've launched a portfolio of new features around, for example, helping individuals keep their content secure, so computer backup, Passwords, Vault, things like that. But I'm just wondering at a high level. 1000heads approached Dropbox as part of their strategy to secure and consolidate their data and empower their workforce in their creative and operational processes. Read full article. But that's the kind of engagement we want to see. I mean, look, we obviously saw a slowdown in the number of net new users added this year, at least relative to the last couple of years in what I would have thought would be a pretty decent demand environment for Dropbox, right, given the move to distributed work. First is evolving our core product. We crossed $2 billion in ARR, and we meaningfully increased our profitability. In 2020, customers relied even more on Dropbox to get their work done as we saw elevated engagement across our products early in the year. In addition, our board has authorized an additional $1 billion share repurchase program consistent with our strategy to allocate a significant portion of our annual free cash flow to share repurchases with the goal of reducing our share count. Additional information regarding the exchange rate assumptions used in our guidance may also be found in our supplemental investor materials. And maybe alongside that, you saw one of your competitors buy a small vendor in the digital signature space, just maybe how you're thinking about any changes in the competitive environment for HelloSign. They turned to Dropbox to transform how they provide a secure cloud-based content storage solution for their on-site and field workers. New updates include the automated organization of user content and simplified sharing and access features, which we believe will lead to greater retention and growth for the core business. Sure. So will that be kind of a tailwind to net new paid users? Capital expenditures of $12 million during the quarter resulted in free cash flow of $158 million or 31% of revenue. As far as where we're looking, there are a lot of different user workflows around content and helping people do more with the content in their Dropbox. I wanted to start by going to a comment made during prepared remarks, Drew, which was about M&A as a potential opportunity. Moving into 2020, I’m confident in the team we have on board and the opportunity ahead. Foreign exchange rates did not have an impact on year-over-year revenue growth for this period. And then just continuing down the path on HelloSign, could you give us a sense -- you did talk about how HelloSign ARR growth has been strong this year. M&A will continue to be an important lever for us as we add to our team and product portfolio while being disciplined in our approach. I believe last time I looked in the K, 90% of revenue was through self-service channels. Rishi Jaluria -- D.A. Dropbox, which belongs to the Zacks Internet - Services industry, posted revenues of $504.10 million for the quarter ended December 2020, surpassing the Zacks Consensus Estimate by 1.20%. With Passwords, our users can store passwords in one secure place, sync across devices, and access passwords from anywhere with zero-knowledge encryption. This compares to 16% operating margin in the fourth quarter of 2019. For the fourth quarter, the company expects revenues (on constant currency basis) between $497 million … Today, Dropbox will discuss the quarterly financial results that were distributed earlier. We've also been building out our portfolio of products for distributed work. Total revenue for the fourth quarter increased 13% year over year to $504 million. In early 2020, we made investments to help take the headache out of creative, post-production, and social media workflows. A reconciliation of GAAP to non-GAAP results may be found in our earnings release, which was furnished with our Form 8-K filed today with the SEC and in the supplemental investor materials posted on our Investor Relations website. Thank you. We’re motley! So we'll continue to look for opportunities and grow the portfolio through M&A. We also evolved Dropbox Spaces into a stand-alone experience that lives alongside the classic Dropbox file experience. Would it be something akin to like what you did with HelloSign? These were developed for some of our most passionate and demanding users to better handle key workflows and further differentiate Dropbox. 2020 was an unpredictable year, and I'm proud of how our team responded. So as we've shared before, we see a lot of opportunity to address new pain points in the virtual work experience. Thanks, Rob. A reconciliation of GAAP to non-GAAP results may be found in our earnings release, which was furnished with our Form 8-K filed today with the SEC and may also be found in the supplemental investor materials posted on our Investor Relations website at investors.dropbox.com. While we don't formally guide to paying users, I want to provide some context on our expectations for this metric in 2021. G&A expense was $47 million or 9% of revenue, which decreased compared to 11% of revenue in the fourth quarter of 2019. Capital expenditures of $12 million during the quarter resulted in free cash flow of $158 million or 31% of revenue. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator 02/23 07:59. Cash flow from operations for 2020 was $571 million. So while this past year meant changes to our product road map, leadership, and team structure, we believe we're set up for stability and execution in 2021. Thank you. And as a reminder, a few factors that do contribute to AN and RR include the migration of existing paying users to premium plans, the mix shift to teams, and team expansion, where we are focused on driving this metric in a positive direction. Market data powered by FactSet and Web Financial Group. Would it be more product-based? I'll now turn it over to Tim to walk through our financial results. We believe these new features will drive better engagement and retention across our user base. Your line is now open. Maybe give us some color on how you're thinking about M&A? Again, thanks, everyone, for joining us. Really appreciate your support, and stay safe, and we'll see you next quarter. Hundreds of millions of people already trust us to store and share their most important files. And I know you're trying to deemphasize too much scrutiny on that. Everybody has a need to keep all their content organized. Yahoo. Last year, we decided to evolve it into a stand-alone experience. So what we're looking for with Spaces is to give teams one place for all their Google docs and Dropbox files and Airtable and everything else. SAN FRANCISCO--(BUSINESS WIRE)--Dropbox, Inc. (NASDAQ: DBX) announced today that it will report financial results for the third quarter ended September 30, 2020 … Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. SAN FRANCISCO --(BUSINESS WIRE)--Feb. 22, 2021-- Dropbox, Inc. (“ Dropbox”) (NASDAQ: DBX) today announced its intention to offer, subject to market conditions and other factors, $567.5 million aggregate principal amount of convertible senior notes due March 1, 2026 (the “2026 Notes”) and $567.5 Turning to our operating expenses, I'd like to note that all expense categories benefited from lower facilities-related costs, driven by our employees working from home, as well as a reduction in depreciation as a result of the writedown in our real estate assets stemming from the impairment. And to be able to organize their work around projects. I'd say proportionately, a big strength of ours is that we have this really efficient, scalable self-serve engine. And in an effort to better support them, we adapted our product road map quickly, making investments in content collaboration capabilities beat the files they can share. And in an effort to better support them, we adapted our product road map quickly, making investments in content collaboration capabilities beat the files they can share. So as we shared last year, we had a surge in demand during the onset of the pandemic, elevated trial starts, things like that, which was mostly isolated to the first half. We also introduced Vault, an additional layer of security for our customers' most valuable content, where that content is accessible with a unique PIN code. Thank you. I mean, for context, we did have a brand campaign in Q4 highlighting Dropbox as a solution for teams at work and for businesses. We crossed $2 billion in ARR, and we meaningfully increased our profitability. So there are time constants involved. When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Dropbox reported net income of $32.7 million, or 26 cents a share, compared with a loss of $17 million, or 13 cents a share, in the year-ago quarter. So I guess the question is there's still this huge free user base out there. That's right -- they think these 10 stocks are even better buys. And these types of competing dynamics between ARPU and paying users is indicative of why we do focus on ARR as our key metric. Sure. In addition, the ability to access 10 years of historical company data allows these creatives to dip into previous campaigns for inspiration and content. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared … And today's tools don't solve all the challenges they face when working with large media files. We're excited about the road ahead and believe we're uniquely suited to help our users thrive in the new world of distributed work. Well, we're really excited about HelloSign. Can we expect some type of normalization in '21? And finally, last month, we also announced an 11% reduction in force to streamline our teams against structure, strengthen our operational discipline and better align to our Virtual First strategy. And I guess as outsiders to the organization, like what should we be paying attention to that says the Spaces strategy is working? Box’s calendar Q4-era earnings report (the company’s Fiscal 2020 Q4) beat investor expectations three times. Gross margin was 79% for the year, which was up 3 percentage points from 2019. Sure. To start, we introduced several features in the first half of 2020 to help our customers protect and secure their most important content. After positive signals from our initial launch, we broadly rolled out Family plan in October, and user adoption has been encouraging. Or conversely, we are seeing some early positive signals on the adoption of our Family plan, which we just launched last November. I mean, engagement broadly has been up, and then we think more broadly or in -- for this year and beyond that the pandemic will be a tailwind given that folks are shifting to distributed work. Timothy's elevation to President will help us focus on our customers through closer collaboration and coordination between our engineering, design, product, and customer-facing teams. We'll drive improvements and efficiencies in our infrastructure and storage as we continue to add users and content. It's very fragmented and distracting and overwhelming experience now. Dropbox Family lets up to six family members share as much as 2 terabytes of data in one plan with a single bill. We expect gross margin to be approximately 1 point higher than fiscal 2020. It's a great question. Hey, guys. We also plan to continue scaling newer efforts like Spaces with strategic partnerships that add unique value to our users' workflows. So what are you seeing users do in Spaces that they weren't doing with the platform before it became available in private beta? Cumulative Growth of a $10,000 Investment in Stock Advisor, Dropbox, Inc. (DBX) Q4 2020 Earnings Call Transcript @themotleyfool #stocks $DBX, Dropbox, Inc. (DBX) Q3 2020 Earnings Call Transcript, Dropbox, Inc. (DBX) Q2 2020 Earnings Call Transcript, Copyright, Trademark and Patent Information. We, therefore, remain committed to our target model and our 2024 free cash flow goal of $1 billion. Is it that the triggers have become less effective? Sure. Q4 2020 Dropbox Earnings Conference Call. ... is scheduled to report fourth-quarter 2020 results on Feb 18. Conversely, we are also seeing early positive signals from the adoption of our Family plan, which could lead to higher-paying user additions. Here are the core principles of our investment thesis: doubling free cash flow to $1 billion annually by 2024, investing for continued revenue growth, driving annual improvements in operating margins targeting 28% to 30%, allocating capital to organic initiatives and acquisitions that align with our strategic and financial objectives, and returning capital to shareholders by allocating a significant portion of our annual free cash flow to share repurchases with the goal of reducing our share count. Cloud service provider Dropbox, Inc. (NASDAQ: DBX) Thursday reported stronger-than-expected earnings and revenues for the fourth quarter of 2020.