Dropbox’s (DBX) Q3 results beat expectations

Dropbox Inc. (NASDAQ: DBX) beat revenue and earnings expectations for the third quarter of 2019. Shares gained 1.6% in aftermarket hours on Thursday.

Total revenue of $428.2 million was up 19% from the same period last year and ahead of the consensus target of $423.4 million.  

GAAP net loss widened to $17 million, or $0.04 per share, from $5.8 million, or $0.01 per share, in the year-ago quarter. Adjusted net income totaled $55.9 million, or $0.13 per share, beating estimates of $0.11 per share.

Co-founder and CEO Drew Houston said, “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. Together with the launch of Dropbox Spaces, we’re making great progress towards building the world’s first smart workspace where people can focus on the work that matters.”

Also read: Dropbox Q3 2019 Earnings Conference Call Transcript

Paying users increased to 14 million from 12.3 million in the same period last year. Average revenue per paying user rose to $123.15 from $118.60 last year.

On a GAAP basis, gross margin was 75.5% compared to 75% in the year-ago quarter.

At the end of the third quarter, the company had cash, cash equivalents and short-term investments of $1.031 billion.

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