Dropbox Inc (DBX)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	509,800	689,700	692,500	617,900	554,400	203,700	166,400	186,500	192,700	356,900	334,800	346,700	299,300	-132,000	-174,500	-243,600	-250,200	92,900	43,900	1,200
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
Pretax margin		20.01%	27.16%	27.33%	24.50%	22.16%	8.26%	6.87%	7.86%	8.29%	15.57%	14.87%	15.70%	13.87%	-6.30%	-8.58%	-12.36%	-13.07%	5.01%	2.44%	0.07%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $509,800K ÷ $2,548,200K
= 20.01%

Dropbox Inc's pretax margin has exhibited significant fluctuations over the periods under consideration. The pretax margin started at a meager 0.07% as of March 31, 2020, then gradually increased to reach 5.01% by September 30, 2020. However, in the subsequent quarters, the company faced challenges with pretax margins dipping into negative territory, hitting lows of -13.07% by December 31, 2020.

The trend of negative pretax margins persisted through the first half of 2021 before showing signs of improvement in the latter part of the year. By December 31, 2021, Dropbox Inc had successfully turned the pretax margin around to 13.87%, demonstrating a significant recovery. This positive momentum continued into the following periods, with pretax margins consistently surpassing double digits until June 30, 2024, reaching a peak of 27.33%.

However, there was a slight decline in pretax margin to 20.01% by December 31, 2024, indicating a potential need for further evaluation of the company's operational efficiency and cost management strategies. Overall, the trend suggests that Dropbox Inc has made notable efforts to enhance its profitability, but investors and stakeholders should continue to monitor the company's financial performance closely.