Dropbox Inc (DBX)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	2,103,100	2,093,300	2,079,400	2,054,300	2,023,100	1,993,100	1,961,000	1,925,500	1,880,700	1,847,400	1,804,300	1,760,900	1,713,700	1,662,300	1,608,300	1,549,700	1,499,300	1,442,100	1,381,300	1,315,000
Revenue (ttm)	US$ in thousands	2,548,200	2,539,600	2,533,800	2,521,800	2,501,600	2,465,400	2,423,400	2,373,600	2,324,900	2,291,600	2,250,800	2,208,700	2,157,900	2,096,500	2,033,700	1,970,500	1,913,900	1,855,800	1,796,600	1,730,700
Gross profit margin		82.53%	82.43%	82.07%	81.46%	80.87%	80.84%	80.92%	81.12%	80.89%	80.62%	80.16%	79.73%	79.42%	79.29%	79.08%	78.65%	78.34%	77.71%	76.88%	75.98%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,103,100K ÷ $2,548,200K
= 82.53%

Dropbox Inc's gross profit margin has shown a consistent trend of improvement over the years, reflecting the company's ability to effectively manage its cost of goods sold and generate higher margins on its products or services. The gross profit margin has increased steadily from 75.98% as of March 31, 2020, to 82.53% as of December 31, 2024.

This upward trajectory indicates that the company has been successful in streamlining its production processes, negotiating better pricing with suppliers, or potentially increasing the selling prices of its offerings. A rising gross profit margin is generally a positive sign as it suggests that the company is becoming more efficient in its operations and creating more value from each dollar of revenue.

However, the slight dip in the gross profit margin from 81.46% as of March 31, 2024, to 80.92% as of June 30, 2024, followed by a subsequent increase to 82.53% by December 31, 2024, could warrant further investigation to understand the factors contributing to these fluctuations. Overall, the improving trend in Dropbox Inc's gross profit margin is a favorable indicator of the company's profitability and operational effectiveness.