Dropbox beats Q3 estimates thanks to focus on remote work products

The company's Q3 non-GAAP diluted net income per share was 37 cents on revenue of $550.2 million.

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

The company's Q3 non-GAAP diluted net income per share was 37 cents on revenue of $550.2 million, up 12.9% year-over-year. 

Analysts were expecting earnings of 35 cents on revenue of $543 million. 

"Q3 was another solid quarter with record free cash flow, strong revenue growth, and great progress against our strategic objectives as we focus on delivering more value to our customers and shareholders," said Dropbox CEO Drew Houston. 

"We shipped several new product experiences to help our customers with today's challenges of distributed and remote work, and I'm confident in our future as we work toward our vision of building one organized place for content and all the workflows around it."

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 $2.218 billion, an increase of $52.1 million quarter-over-quarter and an increase of 12% year-over-year. 

Paying users ended at 16.49 million, as compared to 15.25 million for the same period last year. Average revenue per paying user was $133.79, as compared to $128.03 for the same period last year.