16,833 shares, valued at $579,000 at a $34.42 weighted average sale price, were withheld from Dropbox, Inc. (NASDAQ: DBX) chief legal officer William T. Yoon's account on August 17 to cover the tax obligation triggered by RSU vesting, per an SEC Form 4 filing. The math closes: Yoon holds 350,130 shares directly after the transaction, worth $11.7 million at the August 17 close of $33.38. Restricted stock units scheduled to vest through February 15, 2030 maintain his economic interest in the company.
Tax-withholding dispositions are non-volitional: the company withholds shares at the vesting date to settle the tax bill, and the executive controls neither the timing nor the quantity. Nothing in the filing speaks to Yoon's directional view on Dropbox.
Dropbox runs the core cloud storage platform alongside Dropbox Sign, Dropbox Dash, DocSend, and Reclaim.ai, monetizing the suite through tiered subscriptions across consumer, small and medium-sized business, and enterprise customers in the U.S. and internationally. The company employs 2,113 people.
Revenue picture
| Metric | Value |
|---|---|
| Share price (Aug. 18 close) | $33.87 |
| Market cap | $8.6 billion |
| TTM revenue | $2.5 billion |
| TTM net income | $442.8 million |
Q2 revenue grew 0.9% YoY on a reported basis and 0.1% after adjusting for currency moves and the FormSwift wind-down. TTM net income of $442.8 million on $2.5 billion in revenue implies a margin of roughly 17.7%. The growth rate, at these levels, has stopped being the story.
Unlevered FCF per share
Unlevered free cash flow per share rose 25% to $1.25 as the diluted share count fell from 276.7 million to 226.8 million over the year. Full-year unlevered FCF is guided to at least $1.070 billion; at the $8.6 billion market cap, that implies an unlevered FCF yield of roughly 12.4%. CFO Ross Tennenbaum told analysts the objective is "to compound free cash flow per share over the long term."
With revenue effectively flat, share retirement is the lever that moves per-share FCF. Yoon's 16,833-share transaction is a rounding error against the 49.9 million diluted shares retired over the year.