Dropbox beats Q2 estimates with a focus on distributed work

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Stephanie Condon

By

Stephanie Condon

for Between the Lines

| August 5, 2021 — 20:25 GMT (21:25 BST)

| Topic: Cloud

Dropbox on Thursday reported better-than-expected second quarter financial results, as it continues to focus on enabling distributed work. 

The company’s Q2 non-GAAP diluted net income per share was 40 cents on revenue of $530.6 million, up 13.5 percent year-over-year. 

Analysts were expecting earnings of 33 cents on revenue of $524.06 million. 

“Q2 was a standout quarter, driven by strong revenue growth, record free cash flow, and margin expansion,” CEO Drew Houston said in a statement. “Our results reflect the strength of our business model and our ability to make significant progress on our strategic objectives. We’re proud of our execution this quarter as we delivered even more value to our customers and shareholders and are excited about the opportunity ahead to build next-generation tools to support the new world of distributed work.”

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Dropbox

Since March 2020, when the Covid-19 pandemic forced people to start working remotely, the cloud-based file-sharing company has been redrawing its product roadmap.

Total annual recurring revenue (ARR) ended at $2.166 billion, an increase of $53.8 million quarter-over-quarter and an increase of 12.2 percent year-over-year. 

Paying users ended at 16.14 million, as compared to 14.96 million for the same period last year. Average revenue per paying user was $133.15, as compared to $126.88 for the same period last year.

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Stephanie Condon

By

Stephanie Condon

for Between the Lines

| August 5, 2021 — 20:25 GMT (21:25 BST)

| Topic: Cloud