Dropbox tops estimates in first results since IPO
Dropbox tops estimates in first results since IPO. File sharing and storage company Dropbox beat Wall Street expectations for quarterly results and topped estimates for paying subscribers in its first financial report as a publicly traded company. The San Francisco-based company said the number of paying subscribers surged 23.7% to 11.5M at the end of March, topping analysts’ average estimate of 11.3M.
The company, which started as a free service to share and store photos, music and other large files, has worked to build up its enterprise software offering. Dropbox reported average revenue per user (ARPU) of $114.3 in the first quarter, beating analysts’ estimate of $110. Read more here.
Dropbox tops estimates
“Today’s earnings also bode well for existing investors that are still in their lock up period,” said Minal Hasan, investor at K2 Global, a Silicon Valley-based venture capital firm that invests in startup companies.
Dropbox’s quarterly loss widened to $465.5 million, as the company accounted for IPO-related expenses.
The company had a blockbuster debut on March 23 as investors bought into the biggest technology initial public offering in more than a year, with shares closing up more than 35 percent in their first day of trading.