Dropbox market share decline

Dropbox has seen its market share decline as competitors such as Google Drive and Box become more popular. The company, which has 18 million users, reportedly only attracted 63,000 new customers in the most recent fiscal quarter, and revenue growth was virtually nonexistent, hovering only in the low single digits.

“As we have shared over the last year, we are in a period of transition as a company,” the CEO said. “However, managing this transition while maintaining our current structure and investment levels is no longer viable.”

The reality becomes clear when we look at the numbers. In the second quarter of 2024, Dropbox experienced its slowest period of growth on record, with a year-over-year increase of just 1.9% and revenue of just $634.5 million. As of August, the company’s shares had lost 20% of their value since the beginning of the year.