Dropbox beats Q3 expectations, grows paying customers

The collaboration company's paying customer base continues to grow, as does the average revenue per paying user.

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Dropbox on Thursday published its third quarter financial results, beating market expectations.

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Non-GAAP net income for the quarter came to $45 million, or 11 cents per share. Revenue was $360.3 million, up 26 percent year-over-year.

Wall Street was looking for earnings of 6 cents per share on revenue of $352.57 million.

The collaboration company had 12.3 million paying users in Q3, compared 10.4 million for the same period last year. Average revenue per paying user was $118.60, as compared to $112.05 a year prior.

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"We delivered another quarter of strong execution in Q3, driving healthy top line growth and expanding free cash flow margins," CEO Drew Houston said in a statement. "We're shipping product features and updates our users love, based on a deep understanding of our customers and the tools they need to do their best work. Combined with our ecosystem of best-in-class partners, Dropbox is becoming an even more central part of our customers' workflows."

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