Dropbox Drops Another Solid Quarter; Maintain $30 FVE; Shares Undervalued

We are maintaining our $30 fair value estimate for no-moat Dropbox as the firm closed out 2021 with results largely in line with our expectations. Dropbox continued to see top line strength stemming from increased usage of its products and upselling activity. Overall, we are pleased with Dropbox's transition from the commoditized cloud storage space into greener pastures in the more holistic content collaboration platform space. With a broader set of offerings and collaboration tools, we remain optimistic about the firm's average revenue per user, or ARPU, and user additions. We continue to think that shares are undervalued with the market being overly punitive on SaaS companies in recent months. With shares trading around $23, we see potential upside for long-term investors looking for exposure in the content collaboration space.