Dropbox satisfies Q3 targets, shows increase in paying users

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Dropbox published its third quarter financial results on Thursday, beating market estimates. The cloud collaboration platform delivered a net loss of $17 million, or 4 cents a share. Last quarter Dropbox had a net loss of $21.4  million. Revenue for the quarter was $428.2 million, up 19%, with non-GAAP earnings at 13 cents per share.

Wall Street was expecting earnings of 11 cents a share with revenue of $423.5 million. Shares of Dropbox were down around 3% in after hours trading. 

The company said paying users now sit at 14 million, as compared to 12.3 million for the same period last year. Average revenue per paying user was $123.15, up from $118.60 per user for the same period last year. At the end of the quarter, Dropbox had $1.031 billion in cash, cash equivalents and short-term investments.

“We had a strong Q3 highlighted by 19% top line growth and margin expansion,” said Dropbox chief executive Drew Houston. “We’re excited about the early momentum we’ve seen with our new desktop app — millions are already using it since it was made generally available on September 25.” 

Looking ahead, analysts expect Dropbox to report third quarter earnings of 13 cents per share on revenue of $442 million. Dropbox is holding its outlook until its conference call this afternoon. 

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