Dec 10 (Reuters) – File hosting service provider Dropbox said on Wednesday its chief financial officer Timothy Regan will step down after five years in the role and will be succeeded by Ross Tennenbaum, a senior executive at tax software company Avalara.
The company’s shares fell more than 5% in morning trading.
Tennenbaum will join Dropbox as the company ramps up investment in artificial intelligence, including AI-powered tool Dropbox Dash, which connects apps such as Google Workspace and Slack to help manage files.
His appointment as Dropbox CFO takes effect on December 16, the company said.
Tennenbaum is currently president at Avalara and previously served as its CFO.
Regan, who joined Dropbox in 2016 as chief accounting officer, helped guide the company through its 2018 initial public offering before becoming CFO in 2020.
He will stay on as a non-executive employee of the company through March 15, 2026.
The San Francisco, California-based company said it expects its fourth-quarter and full-year results to be in line with the guidance range it previously provided.
Dropbox expects fourth-quarter revenue of $623 million to $626 million on a constant currency basis.
The company also raised the midpoint of its forecast for annual revenue on a constant currency basis by $18 million, bringing the midpoint to $2.51 billion from $2.49 billion.
In March, the Wall Street Journal reported that activist investor Half Moon Capital was pressuring Dropbox to scrap its dual-class structure, which gives CEO Drew Houston extra voting power.
“We are continuing to evaluate the situation and plan to speak with management once the dust settles,” a spokesperson for Half Moon Capital said.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Tasim Zahid)
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