SAN FRANCISCO – Dropbox, Inc. (NASDAQ:) reported its first-quarter financial results, surpassing analyst expectations with an earnings per share (EPS) of $0.58, which was $0.09 higher than the consensus estimate of $0.49.
The company’s revenue also exceeded forecasts, coming in at $631.3 million against the predicted $629.06 million. Following the announcement, Dropbox shares climbed 5.3%, indicating a robust market response to the company’s performance.
In the first quarter, Dropbox saw a year-over-year (YoY) revenue increase of 3.3%, with a constant currency basis growth close behind at 3.2%. The company’s GAAP operating margin significantly improved to 22.7%, while the adjusted operating margin reached an impressive 36.5%.
Net income also saw a substantial rise, with GAAP net income at $132.3 million, up from $69.0 million in the same period last year, and adjusted net income at $196.7 million compared to the previous year’s $146.1 million.
Drew Houston, Co-Founder and Chief Executive Officer of Dropbox, attributed the strong quarter to the company’s core business delivering in-line revenue and better than anticipated profitability.
He highlighted recent product updates aimed at enhancing user experience across devices, locations, and platforms and emphasized the company’s continued investment in AI-powered product experiences to improve distributed work for their customers.
The company’s paying user base increased to 18.16 million from 17.90 million the previous year, with average revenue per paying user slightly up from $138.97 to $139.59. Dropbox also reported a healthy cash flow, with net cash provided by operating activities at $175.5 million and free cash flow at $166.3 million, both up from the same quarter last year.
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Looking ahead, Dropbox will provide forward-looking guidance during its earnings conference call and webcast, details of which are available on its investor relations website.
Dropbox continues to emphasize its mission to design a more enlightened way of working, with over 700 million registered users across approximately 180 countries. The company remains focused on keeping life organized and work moving forward, with its headquarters in San Francisco, CA, and employees around the world.
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