Dropbox reports Q4 earnings beat, revenue in line with estimates

Published 20/02/2025, 22:18
Dropbox reports Q4 earnings beat, revenue in line with estimates

SAN FRANCISCO - Dropbox, Inc. (NASDAQ:DBX) reported fourth-quarter earnings that exceeded analyst expectations, while revenue came in slightly above estimates. The cloud storage company’s shares remained flat in after-hours trading following the announcement.

Dropbox posted adjusted earnings per share of $0.73 for Q4, surpassing the analyst consensus of $0.62 by $0.11. Revenue for the quarter reached $643.6 million, a 1.4% YoY increase and marginally above the $639.05 million analysts had projected.

The company’s total annual recurring revenue (ARR) grew 2.0% YoY to $2.574 billion. Dropbox reported 18.22 million paying users in Q4, up from 18.12 million in the same period last year. Average revenue per paying user increased to $140.06 from $138.83 YoY.

"We delivered solid results in 2024 and made a lot of progress bringing our AI-powered product, Dash for Business, to market and restructuring our core business to be even more efficient," said Drew Houston, Dropbox Co-Founder and CEO.

For the full fiscal year 2024, Dropbox reported total revenue of $2.548 billion, a 1.9% increase from the previous year. The company’s non-GAAP operating margin improved to 36.4% from 32.8% in the prior year.

Dropbox also announced a new $1.2 billion share repurchase program in December 2024, demonstrating confidence in its financial position and commitment to returning value to shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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