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Dropbox shares fall in spite of solid Q2, COO stepping down

When COO Dennis Woodside steps down, he will not be replaced, Dropbox announced, explaining that it will elevate two other senior executives.

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Dropbox published its second quarter financial results on Thursday, beating market estimates. The cloud collaboration platform also announced that its COO is stepping down and will not be replaced.

Dropbox's Q2 non-GAAP net income came to $48 million, or 11 cents per share. A year earlier, its non-GAAP net income was $20 million or 6 cents a share. Total revenue for the quarter was $339.2 million, an increase of 27 percent year-over-year.

Wall Street was looking for earnings of 7 cents per share on revenue of $330.9 million. In spite of the earnings beat, Dropbox shares fell in after-hours trading.

Meanwhile, Dropbox said that COO Dennis Woodside will remain at the company until early September and serve as an advisor through the end of the year. In lieu of hiring another COO, Dropbox is restructuring the COO responsibilities and elevating two of Dropbox's senior leaders.

Yamini Rangan, currently VP of Business Strategy & Operations, will become Chief Customer Officer and focus on customer-focused business functions. Rangan and Lin-Hua Wu, VP of Communications, will now report to report to CEO Drew Houston.

"They'll join the executive team, which will be restructured to take on Dennis' responsibilities and drive even greater focus on our customers and partners," Dropbox's statement said.