Dropbox Inc (NYSE:DBX), the cloud storage service provider, reported third-quarter sales and profits that grew year over year and were ahead of Wall Street estimates.
Its revenue rose 7.1% from the same period last year to $633 million, above estimates of $627.7 million.
Adjusted earnings per share (EPS) were $0.56, an increase from $0.43 in the year-ago quarter and ahead of the expected $0.48.
Dropbox said its paid users grew from 17.55 million in the year-ago quarter to 18.17 million.
Average revenue per user climbed year over year from $134.31 to $138.71.
“In 3Q, we delivered a solid quarter, beating our revenue guidance and driving better than expected profitability," Dropbox CEO Drew Houston said in a statement.
“We also released Dropbox Dash into open beta, redesigned the core Dropbox web experience, and introduced new business plans that seamlessly integrate workflow solutions beyond storage.”
Houston also highlighted that the company sees the opportunity to leverage artificial intelligence (AI) and machine learning (ML) to improve the experience of distributed work.
Dropbox shares traded modestly higher ahead of Friday’s opening bell, up 0.3% at US$26.50.
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