Cash flow from operations increased 13% to $261 million, with unlevered free cash flow of $276 million or $1.00 per share.
Dropbox reported Q2 2025 revenue of $626 million, a 1.4% year-over-year decline, impacted by strategic scaling back of FormSwift and reduced outbound sales support.
Dropbox repurchased approximately 14 million shares for $400 million in Q2, with $470 million remaining under the current authorization.
Non-GAAP net income was $198 million, up 2% year-over-year, with diluted EPS of $0.71, an 18% increase from the prior year quarter.
Operating margin was 41.5%, exceeding guidance by 400 basis points and up 560 basis points year-over-year, driven by headcount reductions and lower marketing spend.
Total ARR was $2.542 billion, down 1.2% year-over-year, with FormSwift contributing a 160 basis point headwind.
LiveRamp's Data Collaboration Network and Sales Momentum
LiveRamp's data collaboration network is experiencing strong sales momentum, with above-average pipeline conversion, shorter sales cycles, and larger deal sizes in Q1.
The momentum is driven by solutions like Cross-Media Intelligence, Commerce Media Networks, and CTV, which are gaining traction among high-profile customers.
Cross-Media Intelligence, launched in Q1, is surpassing expectations by connecting ecosystem participants with privacy-preserving data sharing and interoperability across cloud environments.
Commerce Media Networks remain a key growth driver, with clients like Walgreens and a leading U.S. department store leveraging the technology for ad personalization and insights.
Partnerships with airlines, casinos, automotive, and real estate sectors are expanding, with a focus on establishing more industry-specific networks.
The momentum is validated by independent reports from Forrester and IDC, highlighting ROI and leadership in data clean room technology.
AI Integration for User Experience and Operational Efficiency
DoorDash's engineering team is actively exploring large AI models to enhance search, recommendation systems, and personalization, aiming to improve user experience.
Management sees AI as a transformative technology that can reimagine product design, onboarding processes, and physical operations, with pragmatic benefits expected in the next 6-12 months.
AI is also being used to automate repetitive physical activities like inventory management and menu creation, increasing quality and fidelity.
Large language models are improving internal productivity, especially in coding, and are expected to be adopted across various functions to build a more efficient organization.
DoorDash's early recognition of AI's potential, similar to cloud computing's impact in 2013, positions it to leverage AI for both customer engagement and operational cost savings.
Impact of DSP Platform Change and Traffic Optimization Efforts
In July, PubMatic experienced a notable drop in spend from a top DSP due to platform valuation changes, which stabilized in August.
The company is actively working to reimplement SPO settings on the affected DSP's new platform, a process expected to take several months.
Management emphasized that traffic shaping and optimization are ongoing efforts to align with the new valuation parameters of the DSP.
Despite the headwind, PubMatic is diversifying its DSP relationships, with spend outside the top 5 growing over 30% year-over-year in July.
The company believes that the platform change was driven by client shifts to different platforms, not by auction dynamics or bid acceptance issues.
PubMatic's approach involves iterative testing and traffic shaping to recover and optimize traffic to the impacted DSP, with a focus on long-term diversification.
Dafinchi