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Dropbox was down nearly 10 percent by the close on Friday, following its announcement on Thursday that chief operating officer, Dennis Woodside, will be stepping down in September.
The cloud services company reported strong second-quarter earnings after the bell on Thursday, beating Wall Street expectations on revenue and earnings per share. But investors seem to be reacting to the loss of a high-profile Silicon Valley executive. Woodside previously served as an executive at Google and Motorola.
Woodside has been with Dropbox since 2014, and helped oversee its IPO earlier this year.
"We're grateful for everything Dennis has done for us," CEO Drew Houston said in a statement. "He's helped transform Dropbox into a publicly-traded company with over $1 billion in annual revenue and 12 offices around the world."
Prior to the announcement, Dropbox's share price had gained nearly 21 percent since going public in March. By Friday's close, those gains were pared down to 9 percent for the year.