Dropbox Results Beat Estimates on Strong Subscriber Growth

Dropbox Results Beat Estimates on Strong Subscriber Growth

Source: Dropbox

By Neha Malara

(Reuters) – Dropbox Inc on Thursday reported quarterly revenue and profit above Wall Street estimates, as the file-storage company signed up more customers. In after hours trading, shares were up 6.3% at the time of post.

The company, which counts National Geographic and Spotify Technology SA among its customers, said it had 14.3 million paid subscribers at the end of the fourth quarter.

Analysts had expected 14.2 million subscribers, according to research firm FactSet.

Dropbox has been trying to attract customers through tools that allow users to create and share documents across platforms, including Google Docs and Microsoft Office.

The company has also benefited from its “freemium” model, where consumers can use its basic services for free but have to pay for additional services.

The company’s net loss narrowed to $6.6 million from $9.5 million a year earlier. On a per-share basis, loss was flat at 2 cents.

Average revenue per user rose to $125 from $119.6 a year earlier, while analysts had estimated $124.8 for the quarter ended Dec. 31.

Excluding items, it earned 16 cents per share, above expectations of 14 cents per share.

Revenue rose 18.6% to $446 million, edging past the average analyst estimate of $443.3 million, according to IBES data from Refinitiv.

Editing by Shailesh Kuber.

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Source: Reuters

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