(Bloomberg) -- Dropbox’s investors will dissect its latest efforts to convert free users into paying subscribers today, when the file-sharing service reports quarterly results for the first time as a public company.
Average revenue per user and the tally of paid users are the two most important items to watch for in Dropbox’s first-quarter release, RBC analyst Mark Mahaney wrote in a note. Mahaney, who rates the stock sector perform, expects the company to also release guidance for the second quarter and full year. Goldman Sachs analyst Heather Bellini warned in a note that faster-than-expected conversion of free users to paid users was a key risk to her neutral rating.
The year’s largest technology listing to date has risen 51 percent from its March 22 initial public offering. Most analysts believe that more upside remains in the stock despite its dramatic rise.
Shares are up as much as 2.9 percent intraday ahead of the results, touching their highest price since April 13. Dropbox options expiring on May 11 imply a one-day move of 11.8 percent following the release.
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