Dropbox Shares Rise On Better-Than-Expected Q1 Results

Dropbox DBX reported its first-quarter financial results after the bell Thursday. Here's a look at the highlights. 

The Details: Dropbox reported quarterly earnings of 58 cents per share which beat the analyst consensus estimate of 50 cents by 16%. Quarterly sales came in at $631.3 million which beat the analyst consensus estimate of $628.67 million and is a 3.31% increase over sales of $611.1 million from the same period last year.

Dropbox reported 18.16 million paying users for the quarter, as compared to 17.9 million for the same period last year. Paying users increased by 35,000 quarter-over-quarter. Average revenue per paying user was $139.59, as compared to $138.97 for the same period last year.

Total annual recurring revenue (ARR) was $2.556 billion in the first quarter, an increase of 3.6% from the same period last year.

Non-GAAP gross margin was 84.6%, as compared to 82.4% for the same period last year.

“In Q1, our core business delivered in-line revenue and better than anticipated profitability,” said Dropbox CEO Drew Houston. “We recently announced a collection of product updates designed to make it even easier for our users to secure, organize and share their content across different devices, locations and platforms. Looking ahead, we’ll stay disciplined in our operations, while investing in growth initiatives focused on building AI powered product experiences to improve distributed work for our customers.”

DBX Price Action: According to Benzinga Pro, Dropbox shares are up 1.99% after-hours at $23.60 at the time of publication Thursday.

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