(Reuters) – Online file storage firm Dropbox Inc (DBX.O) signed up more paying subscribers in its second quarter as a public company than Wall Street was expecting.
FILE PHOTO The DropBox logo is seen in this illustration photo July 28, 2017. REUTERS/Thomas White/Illustration/File Photo
Dropbox had 11.9 million subscribers at the end of June, about 20 percent higher than a year earlier. The result exceeded analysts’ average estimate of 11.73 million, according to FactSet. Average revenue per user was $116.66, comfortably above expectations of $113.95.
Dropbox also said Chief Operating Officer Dennis Woodside, who played an instrumental role in the company’s March initial public offering, will step down in early September after four years with the San Francisco-headquartered company. He will remain an advisor until the end of the year.
Dropbox, which is yet to turn a profit, reported a loss of $4.1 million in the second quarter of 2018 compared with $26.8 million a year earlier.
Excluding one-time items, Dropbox earned 11 cents per share, beating estimates of 6 cents.
Revenue jumped 27 percent to $339.2 million, above Wall Street expectations of $330.9 million.
Dropbox had a blockbuster market debut on March 23, with shares ending the day more than 35 percent higher.
Reporting by Munsif Vengattil in Bengaluru; Editing by Sai Sachin Ravikumar