Dropbox, Inc. (NASDAQ:DBX) Q2 2019 Earnings Conference Call - Final Transcript
Aug 08, 2019 • 05:00 pm ET
Thank you. [Operator Instructions] Our first question comes from John DiFucci from Jefferies. Please go ahead.
Hi, this is Howard Ma on for John. Thanks for taking the question. Drew, so you mentioned a lot of neat features that are part of this new Dropbox experience, and [Indecipherable] including like Smart Sync and the ability to restore deleted work. I guess you call it Quick Actions. So I'm just wondering, what are these functionalities do you think will become really table stakes in the near-term, because a lot of these features are things that we're increasingly used to in our mobile and our daily lives. And within the greater philosophy of spend, the R&D has been kind of inflated over time, even though it's come down. So how do you think about how do you manage spend in R&D versus go-to-market, for example? Thank you.
Thanks. Well, first, I'd say probably the highlight from a product standpoint was we launched an entirely new desktop app, so what we call the new Dropbox, which is the biggest change we've ever made to our product. And so Smart Sync has been a great feature we've had for a while. It's something that drives conversion to our paid plans, and it's something that we've moved into our plus plan last quarter. We'd say the highlights are much more about how we've turned Dropbox from this -- a metaphor from a magic folder to more of a magic workspace. And the big improvements on the product front, which I think are important to a lot of questions you're asking, are -- were solving a much bigger problem for our customers, because we found that people are -- really all of us are suffering from information overload at work and the experience is incredibly fragmented. And we reimagined the Dropbox experience to be this -- to become a living workspace with a couple of advantages.
So first is moving beyond files to any kind of cloud content. So you can have Google Docs next to your PowerPoints next to your Trello boards, really everything you need with your project. And we're definitely the only company that does this in a native experience. And second is turning Dropbox from a place where you put content when it's done to a workspace you're living out of all day. And so being able to not just see the content and the files and cloud content, but be able to see other people and activity, see what's going on. We've got Slack people from the Dropbox app being able to start a Zoom meeting. It's just a much more engaging experience. And it's still an early access, but we're really excited about it.
And so I'd say this is pretty transformative product change because what we find maybe where we started it was the problem we were solving was people forgetting their thumb drives and things like that. But now the problem we see at work has a much higher