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This is out of context. Maybe show how these costs have been changing over time vs revenue change to make it more meaningful.
by tinyhouse 6y ago
This is out of context. Maybe show how these costs have been changing over time vs revenue change to make it more meaningful.
- avrionov 6y agoSeeking Alpha link has the changes over time. They were able to reduce the expenses in the last 2 years, but the investors are going to compare them with their competitors, not only with the previous years. FB for example has engineering expenses of 21% better position on the market place and better growth. Dropbox in the current state can become a target for activist investors like Elliot. The high percent R&D expenses make them more attractive because there is more to cut.
- tinyhouse 6y agoSince when FB is a Dropbox competitor? I'm sure their engineering expenses will continue to drop, esp with the whatsapp exodus to Signal... Joking aside... > They were able to reduce the expenses in the last 2 years That sounds pretty good to me! Reduce expenses but revenue is growing and revenue per user is growing. So they make more money without growing costs. That's great. With the layoffs that ratio would even improve.
- avrionov 6y agoGoogle engineering expenses are 16%. We can disagree on their future, but for me it is likely that they'll face more challenges and more pressure from the investors.