Dropbox Inc (NYSE:DBX) shares are heading higher Friday after the company’s first-quarter results overdelivered on expectations.
The cloud storage platform posted revenue of $611.2 million, up 9% year-over-year and topping Street expectations of $601.4 million. Earnings were $0.42 per share, which also beat expectations of $0.35.
Shares of the company rose more than 8% Friday morning to $21.21.
CEO Drew Houston said the rise of artificial intelligence in computing has changed the landscape in which companies like Dropbox operate.
“While the economic backdrop remains tough for our existing businesses, the AI era of computing has arrived and we see a huge opportunity to apply AI/ML to our products to transform knowledge work,” Houston said. “I’m committed to ensuring Dropbox is at the forefront of this era and excited to bring more AI-powered products to market for our customers.”
Meanwhile, Dropbox also noted that its total paying customers increased from 17.09 million a year ago to 17.9 million, and average revenue per user jumped from $134.64 to $138.97.
The company forecasted second-quarter revenue between $612 million and $615 million, which lines up with Street expectations of $613.5 million.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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