01:30 PM EDT, 08/09/2024 (MT Newswires) -- Dropbox ( DBX ) posted a "decent quarter in a challenging demand environment" with Q2 earnings and revenue topping estimates by analysts, RBC Capital Markets said Friday in a report.

"As headwinds persisted in Q2, we were encouraged with execution once again, particularly on profitability," RBC said.

The technology company's full-year revenue and margin guidance inched higher even as "macro headwinds have shown no signs of abating" the report said.

The "conservative" approach to guidance is "the right course of action given full year expectations for roughly flat paying user count based on expected down-sell pressures from larger (macro-troubled) customers," RBC said.

RBC reiterated its outperform rating on Dropbox ( DBX ) stock and the $32 price target as "initiatives around GenAI/bundling are progressing, and risk/reward remains compelling."

Shares of Dropbox ( DBX ) rose 3.6% in recent trading Friday.

Price: 22.51, Change: +0.78, Percent Change: +3.61