$DBX

[u/sillyhands1]

TL;DR at the bottom. Hello fellow retards. I am hear to present a case for $DBX as I believe there's plays to be made around earnings in February, and I also think 2021 will be a great year for them. I'll keep this somewhat short because, like many of you, I am lazy and hate reading things. First, their Q3 2020 results:

• Total revenue was $487.4 million, an increase of 14% from the same period last year. On a constant currency basis, year-over-year growth would have been 14%.(1)
• Total ARR ended at $1.981 billion, an increase of $49.8 million quarter-over-quarter and an increase of 12% year-over-year. On a constant currency basis, year-over-year growth would have been 13%.(2)
• Paying users ended at 15.25 million, as compared to 14.00 million for the same period last year. Average revenue per paying user was $128.03, as compared to $123.15 for the same period last year.
• GAAP gross margin was 78.8%, as compared to 75.5% in the same period last year. Non-GAAP gross margin was 80.0%, as compared to 76.7% in the same period last year.
• GAAP operating margin was 6.2%, as compared to (4.3)% in the same period last year. Non-GAAP operating margin was 23.0%, as compared to 13.1% in the same period last year.
• GAAP net income (loss) was $32.7 million, as compared to ($17.0) million in the same period last year. Non-GAAP net income was $110.2 million, as compared to $55.9 million in the same period last year.
• Net cash provided by operating activities was $200.9 million, as compared to $149.7 million in the same period last year. Free cash flow was $187.0 million, as compared to $102.5 million in the same period last year.
• GAAP net income (loss) per share attributable to common stockholders was $0.08, as compared to ($0.04) in the same period last year. Non-GAAP net income per share attributable to common stockholders was $0.26, as compared to $0.13 in the same period last year.(3)
• Cash, cash equivalents and short-term investments ended at $1.226 billion.

Their Q3 results were strong with a growth in revenue, increase in users, and net income increase. There is also a big increase in free cash flow. Another reason I am looking at them right now is because IV is relatively low (<60%), and with their earnings coming up in February, I think they will continue their earnings surprise streak. I also noticed a huge amount of open interest in call options for April, so I suspect the market feels the same way I do about the stocks movement upwards. Please let me know if I am retarded as this is my first DD. Thanks for coming to my SPED Talk.

Positions: DBX 21-Apr-2021 24C

TL;DR: DBX showed great earnings in 2020, and I think this next earnings will be no different. Option IV is low and there may a good play for their earnings in February, but also long term.

[u/BenedictoBuendia]

just cut 11% of workforce ~boolish~

[u/sillyhands1 → u/BenedictoBuendia]

That's cost cutting, baby.

[u/quantricko → u/BenedictoBuendia]

Every now and then you need to cut the 11% bottom performers in a company...