Shares of cloud storage specialist Dropbox (DBX 0.86%) took a hit on Friday, falling as much as 14.3%. By the time the market closed, the stock was down 12.8%
The stock's decline follows Dropbox's second-quarter update after market close on Thursday. Underwhelming deferred revenue and billings may be reasons for the stock's decline, but shares have also been generally trending downward anyway in recent weeks; this means today's loss may also simply be -- at least in part -- an extension of this recent downward trend.
Dropbox's second-quarter revenue rose 18% year over year to $401.5 million. This came in slightly ahead of analysts' consensus estimate for revenue of $401 million. Non-GAAP (adjusted) earnings per share of $0.10 beat an average forecast of $0.09.
Importantly, average revenue per paying user (ARPU) increased from $116.6 in the year-ago quarter to $120.48. Total paying users climbed from 11.9 million to 13.6 million over the same time frame.
"Q2 was another solid quarter of execution, highlighted by paying user growth, ARPU expansion, and the launch of a completely reimagined Dropbox experience that brings content, tools, and teams together," said Dropbox CEO Drew Houston in the company's earnings release.
But billings and deferred revenue of $410.4 million and $517.3 million were below analysts' average estimate of $420.3 million and $527.7 million, respectively.
For its third quarter, management said it expects revenue of $421 million to $424 million, up from $360.3 million in the third quarter of 2018.
The company notably raised its full-year revenue outlook. Management now expects revenue during the period to be between $1.648 billion and $1.654 billion, up from a forecast of $1.634 billion to $1.646 billion.