When Dropbox Inc. (NASDAQ: DBX) reported its most recent quarterly results after Thursday’s closing bell, the file hosting service provider posted $0.16 in earnings per share (EPS) and $446.0 million in revenue. Analysts were looking for $0.14 in EPS and revenue of $443.41 million. The fourth quarter of last year reportedly had EPS of $0.10 and $375.9 million in revenue.

During the latest quarter, total revenue increased 19% year over year, or 20% on a constant currency basis. Annual recurring revenue ended at $1.820 billion, an increase of 19% year over year.

Additionally, the number of paying users ended the quarter at 14.3 million, as compared to 12.7 million at the end of the prior year. Average revenue per paying user was $125.00, as compared to $119.61 for the same period last year.

Looking ahead, Dropbox increased its forecasts for its operating margin and free cash flow in 2020 and beyond. The company now expects operating margin to be in the range of 28% to 30%, which it expects to achieve by 2024. Note that this is up from its initial estimate of 20% to 22% only five months ago.

Consensus estimates call for $0.59 in EPS and $1.9 billion in revenue for the 2020 full year.

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

Our strong Q4 marked the end of an exciting year for Dropbox as we launched our vision for the smart workspace. We closed the year with more than $1.6 billion in revenue, over 450,000 Dropbox business teams, and millions of people using our new foreground app that keeps Dropbox at the center of our users’ workflows. Moving into 2020, I’m confident in the team we have on board and the opportunity ahead.

Dropbox stock traded up about 20% on Friday, at $22.52 in a 52-week range of $16.08 to $26.20. The consensus price target is $28.50.

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