Dropbox: Fiscal 1Q23 Financial Results

Dropbox, Inc. announced financial results for its first quarter ended March 31, 2023.

“We’re pleased with our financial results in 1Q23, beating our guidance across all metrics,” said co-founder and CEO Drew Houston. “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. 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.“

1FQ23 Results
• Total revenue was $611.1 million, an increase of 8.7% from 1FQ22. On a constant currency basis, Y/Y growth would have been 11.6%.
• Total ARR ended at $2.468 billion, an increase of 7.8% from 1FQ22. On a constant currency basis, Total ARR grew $37.5 million Q/Q, and Y/Y growth would have been 11.6%.
• Paying users ended at 17.90 million, as compared to 17.09 million for 1FQ22. Average revenue per paying user was $138.97, as compared to $134.63 for 1FQ22.
• GAAP gross margin was 80.9%, as compared to 79.9% for 1FQ22. Non-GAAP gross margin was 82.4%, as compared to 81.3% for 1FQ22.
• GAAP operating margin was 13.8%, as compared to 15.9% for 1FQ22. Non-GAAP operating margin was 28.6%, as compared to 30.3% for 1FQ22.
• GAAP net income was $69.0 million, as compared to $79.7 million for 1FQ22. Non-GAAP net income was $146.1 million, as compared to $141.5 million for 1FQ22.
• Net cash provided by operating activities was $139.9 million, as compared to $141.4 million for 1FQ22. Free cash flow was $138.0 million, as compared to $130.7 million for 1FQ22.
• GAAP diluted net income per share attributable to common stockholders was $0.20, as compared to $0.21 for 1FQ22. Non-GAAP diluted net income per share attributable to common stockholders was $0.42, as compared to $0.38 for 1FQ22.
• Cash, cash equivalents and short-term investments ended at $1.253 billion.