Revenue soared 23% to $375.9 million helped by a 5.5% increase in average revenue per user (ARPU) and a 15.5% growth in paying users.
Paying users totaled 12.7 million, as compared to 11 million in the year-over period. Meanwhile, ARPU rose to $119.61 from $113.39 for the same period last year.
For the fourth quarter, the company said its healthy top-line growth and free cash flow generation reflected its strong business model and new product updates and integrations, like Dropbox Extensions. This has helped the company close out the year with over 400,000 business teams.
Looking ahead into the first quarter of fiscal 2019, the company expects revenue in the range of $379 million to $382 million and adjusted operating margin in the range of 7% to 8%. For the fiscal year 2019, Dropbox predicts revenue in the range of $1.627 billion to $1.642 billion, adjusted operating margin of 10.5% to 11.5%, and free cash flow of $375 million to $385 million.
During the prior sequential quarter, the company’s stock had advanced 8.8% during the after-market hours as it posted narrower losses backed by a 26% jump in revenue. The results were driven by healthy top-line growth and expanding free cash flow margins.
Dropbox rival Box (BOX) is scheduled to report fourth-quarter earnings on Wednesday, February 27.
Shares of Dropbox ended Thursday’s regular session up 0.39% at $25.59 on the Nasdaq. Following the earnings release, the stock inched down over 2% in the after-market session.