Dropbox shares ended the US Thursday trading higher, before sliding in after-hours activity amid news its COO is leaving the business. Dropbox also reported a strong Q2 financial performance, however, that failed to buoy investors.
Dropbox shares closed 9.13% higher at $34.43 ahead of its Q2 earnings release. The stock turned negative in post-trading activity, losing over 6%.
Dropbox COO to leave
Dropbox announced Thursday that its COO, Dennis Woodside is set to leave the company in September. He has been with the business for a little over four years after joining from Motorola Mobility in 2014.
“We’re grateful for everything Dennis has done for us,” said Dropbox CEO Drew Houston. “He’s helped transform Dropbox into a publicly-traded company with over $1 billion in annual revenue and 12 offices around the world. Dennis will always be part of the Dropbox family, and we wish him all the best.”
Woodside was equally positive on his time at the tech firm.
“I’ve had an amazing four years at Dropbox, and am proud of what we’ve accomplished together. It’s been an honor to work with such exceptionally talented people and help grow and scale our business,” said Dennis.
Two existing senior Dropbox members have been promoted and will take on new executive responsibilities as the business currently isn’t planning to take on a new COO.
Dropbox Q2 earnings
Dropbox also announced Thursday that its Q2 revenues grew 27% to $339.2 million from a year ago and a net loss of just $4.1 million, down from $26.8 million loss during the same period a year earlier.
The tech business said it had 11.9 million paying users in Q2, a 20% increase from a year earlier. Meanwhile, its paid user growth rose 69% over the same period.
“We delivered another solid quarter of revenue growth in Q2, reflecting the strength of our unique business model,” Dropbox Co-Founder and CEO Houston said.