Dropbox Inc (DBX)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	2,023,100	1,880,700	1,713,700	1,499,300	1,250,300
Revenue	US$ in thousands	2,499,000	2,333,500	2,161,100	1,914,900	1,660,000
Gross profit margin		80.96%	80.60%	79.30%	78.30%	75.32%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,023,100K ÷ $2,499,000K
= 80.96%

Dropbox Inc's gross profit margin has shown a consistent upward trend over the past five years, increasing from 75.26% in 2019 to 80.87% in 2023. This indicates that the company has been able to effectively control its cost of goods sold and generate a higher percentage of revenue as gross profit. The gradual improvement in gross profit margin suggests efficient cost management and pricing strategies, which are essential for sustaining profitability. The relatively high gross profit margins compared to earlier years reflect Dropbox Inc's ability to generate a healthy return on sales after covering direct production costs. Overall, the trend in gross profit margin indicates operational efficiency and effective execution of the company's business strategies.