Dropbox (NASDAQ: DBX) reported an 18% jump in revenues to $401.5 million in the second quarter, as the number of paying users increased 14%. The top-line was in line with analysts’ estimate.
Meanwhile, average revenue per user improved just 3.2% to $120.48, disappointing investors who sent the stock down over 7% in the aftermarket hours.
Shares of Dropbox, which went public last year, have been mostly trading sidewise this year.
Adjusted net income for Q2 came in at 10 cents per share, lower than 11 cents per share in the year-ago period, but better than the street consensus of 8 cents per share.
CEO Drew Houston said, “We continue to balance growth and profitability while delivering product updates our users find valuable. We’re making great progress on our mission of designing a more enlightened way of working and are excited about the remainder of 2019 and beyond.”
READ: Fiverr surprises the market by cutting down losses in Q2
The San Francisco, California-based firm has been rampantly forging partnerships and making acquisitions to enhance its products and also to win new customers.
The file-hosting service provider made a slew of strategic partnerships with tech giants such as Salesforce (NYSE: CRM), Microsoft (NASDAQ: MSFT), Atlassian (NASDAQ: TEAM) and Adobe (NASDAQ: ADBE), aimed at simplifying workflow and improving customer experience.
The recent acquisition of HelloSign is expected to have given a boost to Dropbox in the electronic signature market.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.