Woodside has been with Dropbox since 2014 and helped guide the launch of the company’s IPO.
By the close of business on Friday, Dropbox stocks had fallen by nearly 10 percent following the news that the company’s chief operating officer, Dennis Woodside, would be leaving the company next month. He will remain at the company until early September and then serve in an advisory role until the end of the year.
Woodside joined Dropbox in 2014, at a time when the company was trying to find its own way in enterprise business offerings. He helped to guide the company to strong showings on Wall Street and justify its earnings and potential by becoming a successful publicly traded company. Earlier this year, shares of the company reached above 40 percent when its IPO was launched.
The company’s CEO, Drew Houston, said in a statement, “We’re grateful for everything Dennis has done for us. He’s helped transform Dropbox into a publicly-traded company with over $1 billion in annual revenue and 12 offices around the world. Dennis will always be part of the Dropbox family, and we wish him all the best.”
One of the leading global collaboration platforms, the company also announced its financial results for the second quarter of 2018, beating Wall Street expectations with revenue of $339.2 million, an increase of 27 percent year-over-year. The company increased its paid user base to 11.9 million, from 9.9 million last year, in the second quarter of 2018. For the third quarter of 2018, Dropbox is aiming for $350 million to $353 million in revenue, and raised its annual sales outlook to $1.372 billion from its original estimate of $1.355 billion.
Dropbox cofounder and CEO, Drew Houston, said of the report, “We delivered another solid quarter of revenue growth in Q2, reflecting the strength of our unique business model. We added over a dozen new product features to our user and admin experiences, and strengthened our infrastructure, all while driving a 30% free cash flow margin. With our massive scale and continued product innovation, we’re well on our way to advancing our mission of designing a more enlightened way of working.”
The company will not seek a new COO at this time. Rather, it will promote two current vice presidents, Yamini Rangan, the current VP of Business Strategy and Operations, and Lin-Hua Wu, the current VP of Communications, who will both report to the company’s CEO, Drew Houston.