Dropbox Inc (DBX) Q3 2023 Earnings: Revenue Up 7.1% YoY, Net Income Rises to $114.1 Million
Dropbox Inc (NASDAQ:DBX) reported Q3 2023 revenue of $633.0 million, up 7.1% year-over-year.
Net income for the quarter was $114.1 million, compared to $83.2 million for the same period last year.
Paying users increased to 18.17 million from 17.55 million last year, with average revenue per paying user rising to $138.71 from $134.31.
Dropbox Inc (NASDAQ:DBX) reported a GAAP gross margin of 81.1% and a non-GAAP gross margin of 82.6%.
Dropbox Inc (NASDAQ:DBX) announced its financial results for the third quarter ended September 30, 2023, on November 2, 2023. The company reported a solid quarter, beating revenue guidance and driving better-than-expected profitability.
Financial Performance
Dropbox Inc (NASDAQ:DBX) reported total revenue of $633.0 million for Q3 2023, marking a 7.1% increase from the same period last year. On a constant currency basis, the year-over-year growth would have been 8.3%. The company's total annual recurring revenue (ARR) ended at $2.525 billion, up 3.8% from the same period last year. On a constant currency basis, total ARR grew $24.5 million quarter-over-quarter, and year-over-year growth would have been 7.5%.
User Growth and Revenue
The number of paying users increased to 18.17 million, compared to 17.55 million for the same period last year. The average revenue per paying user was $138.71, as compared to $134.31 for the same period last year.
Profitability and Cash Flow
Dropbox Inc (NASDAQ:DBX) reported a GAAP gross margin of 81.1%, compared to 81.4% for the same period last year. The non-GAAP gross margin was 82.6%, compared to 82.9% for the same period last year. The GAAP operating margin was 20.6%, compared to 15.1% for the same period last year. The non-GAAP operating margin was 36.0%, compared to 31.6% for the same period last year.
The company's GAAP net income was $114.1 million, as compared to $83.2 million for the same period last year. The non-GAAP net income was $194.1 million, as compared to $153.1 million for the same period last year. Net cash provided by operating activities was $255.9 million, as compared to $251.4 million for the same period last year. Free cash flow was $246.5 million, as compared to $245.2 million for the same period last year.
Looking Forward
Dropbox Inc (NASDAQ:DBX) continues to innovate and expand its product offerings, leveraging AI and machine learning to improve the experience of distributed work. The company recently released Dropbox Dash into open beta, redesigned the core Dropbox web experience, and introduced new business plans that seamlessly integrate workflow solutions beyond storage.
Explore the complete 8-K earnings release (here) from Dropbox Inc for further details.
This article first appeared on GuruFocus.
