Dropbox Sneaks By in Q3

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Dropbox Inc. (NASDAQ: DBX) reported its most recent quarterly results after the markets closed on Thursday. The company said that it had $0.11 in earnings per share (EPS) and $360.3 million in revenue, which compares with consensus estimates that called for $0.06 in EPS and $352.57 million in revenue.

During the quarter, paying users totaled 12.3 million, up from 10.4 million for the same period last year. Average revenue per paying user was $118.60, as compared to $112.05 for the year-ago period.

On the books, Dropbox cash, cash equivalents and short-term investments totaled $1.04 billion at the end of the quarter, up from $430.0 million at the end of the previous fiscal year,

Although the company did not supply guidance in the report, consensus estimates are calling for $0.06 in EPS and $363.7 million in revenue for its fourth quarter.

Drew Houston, Dropbox co-founder and CEO, commented:

We delivered another quarter of strong execution in Q3, driving healthy top line growth and expanding free cash flow margins. … 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.

Shares of Dropbox last closed at $24.74, with a post-IPO range of $21.36 to $43.50. The stock has a consensus analyst price target of $35.42. Following the announcement, the stock was up over 8% at $26.86 in early trading indications Friday.

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