Dropbox Stock Falls After Q4 Report: ARR Slips, Paying Users Decrease

Dropbox, Inc. DBX reported its fourth-quarter results after Thursday’s closing bell. Here’s a look at the details from the report. 

The Details: Dropbox reported quarterly earnings of 73 cents per share, which beat the analyst consensus estimate of 62 cents. Quarterly revenue clocked in at $643.6 million, which beat the analyst consensus estimate of $638.91 million and was an increase over the $635 million from the same period last year.

• Total ARR was $2.574 billion, an increase of 2% from the same period last year.  Total ARR decreased $4.8 million quarter-over-quarter.
• Paying users was 18.22 million, as compared to 18.12 million for the same period last year.
• Average revenue per paying user was $140.06, as compared to $138.83 for the same period last year.
• Paying users decreased by 15,000 quarter-over-quarter.
• Non-GAAP gross margin was 83.1%, as compared to 82.3% for the same period last year.

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“We delivered solid results in 2024 and made a lot of progress bringing our AI-powered product, Dash for Business, to market and restructuring our core business to be even more efficient,” said Dropbox CEO Drew Houston.

“Looking ahead to 2025, we’ll continue with our strategy of scaling Dash, simplifying and strengthening our profitable core business, and integrating Dash and FSS to deliver even greater value to our customers,” Houston added.

DBX Price Action: According to data from Benzinga Pro, Dropbox shares are down 5.9% after hours at $30.00 Thursday.  

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