Dropbox slips to a loss after taking $400 million real estate hit due to remote work


Dropbox slips to a loss after taking $400 million real estate hit due to remote work


Dropbox on Thursday reported a $398.2 million one-time charge in the fourth quarter to reflect the company’s shift to remote work.

As the coronavirus emerged in the U.S. last year, companies closed offices and pushed their employees to work from their homes. Some companies observed that the remote work did not hurt -- and in some cases helped -- productivity and employee satisfaction, and sought to make it more permanent. That can come at a cost for companies with considerable real-estate footprints....

Key Points
  • Dropbox swung from being profitable to losing money in the fourth quarter as it transitioned to a remote configuration, following technology companies such as Atlassian and Twitter.

  • The impairment charge resulting from the changes was excluded from non-GAAP results, which showed an annualized increase in profit...
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RSK: This may also mean that companies can have employees work in smaller office pods around the country in 2nd and 3rd tier cities such as Madison and Milwaukee...

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- - Volume: 9 - WEEK: 9 Date: 2/23/2021 8:40:16 AM -