Dropbox Q2 above estimates, losses widen
Dropbox published its second quarter financial results on Thursday, beating market estimates. The cloud collaboration platform delivered a net loss of $21.4 million, or 5 cents a share. Last quarter Dropbox had a net loss of $7.7 million. Revenue for the quarter was $401.5 million, up 18%, with non-GAAP earnings at 10 cents per share.
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Wall Street was expecting earnings of 8 cents a share with revenue of $400.9 million. Shares of Dropbox were up down nearly 5% in after hours trading.
The company said paying users now sit at 13.6 million, as compared to 11.9 million for the same period last year. Average revenue per paying user was $120.48, up from $116.66 per user for the same period last year.
Echoing his statement the previous quarter, Dropbox chief executive Drew Houston said the Q2's results were driven by "paying user growth and ARPU expansion."
"Q2 was another solid quarter of execution, highlighted by paying user growth, ARPU expansion, and the launch of a completely reimagined Dropbox experience that brings content, tools, and teams together," said Houston. "We continue to balance growth and profitability while delivering product updates our users find valuable."
Looking ahead, analysts expect Dropbox to report third quarter earnings of 11 cents per share on revenue of $419.21 million. Dropbox is holding its outlook until its conference call this afternoon.