Dropbox: Fiscal 1Q20 Financial Results

Dropbox, Inc. announced financial results for its first fiscal quarter ended March 31, 2020.

“We had a strong first quarter as we rallied together to support our customers and our community during this unprecedented public health crisis,” said co-founder and CEO Drew Houston. “We delivered healthy growth, record operating margins, and our first quarter of GAAP profitability. I’m incredibly proud of our team as we continue to build products that help facilitate distributed work at scale. We’ve built an enduring business and I remain confident in our future.”

1FQ20 Results
• Total revenue was $455.0 million, an increase of 18% from the 1FQ19. On a constant currency basis, Y/Y growth would have been 19%.
• Total ARR ended at $1.864 billion, an increase of 16% from 1FQ19. On a constant currency basis, Total ARR grew $52.8 million Q/Q, and Y/Y growth would have been 17%. (2)
• Paying users ended at 14.6 million, as compared to 13.2 million for 1FQ19. Average revenue per paying user was $126.30, as compared to $121.04 for 1FQ19.
• GAAP gross margin was 77.3%, as compared to 74.5% in 1FQ19. Non-GAAP gross margin was 78.3%, as compared to 75.4% in 1FQ19.
• GAAP operating margin was 5.9%, as compared to (5.5%) in 1FQ19. Non-GAAP operating margin was 16.1%, as compared to 10.1% in 1FQ19.
• GAAP net income (loss) was $39.3 million, as compared to ($7.7) million in 1FQ19. Non-GAAP net income was $69.8 million, as compared to $41.7 million in 1FQ19.
• Net cash provided by operating activities was $53.3 million, as compared to $63.2 million in 1FQ19. Free cash flow was $25.5 million, as compared to $33.5 million in 1FQ19.
• GAAP basic and diluted net income (loss) per share was $0.09, as compared to ($0.02) in 1FQ19. Non-GAAP diluted net income per share was $0.17, as compared to $0.10 in 1FQ19.
• Cash, cash equivalents and short-term investments were $1.101 billion at the end of 1FQ20.