Dropbox quarterly results beats estimates

(Reuters) – Dropbox Inc’s quarterly revenue and profit beat Wall Street estimates on Thursday, as the file-hosting company signed up more paying customers on its platform with people shifting to remote work due to the COVID-19 pandemic.

Shares of the company were up 4% in trading after the bell.

Dropbox achieved profitability on a GAAP basis since it went public in March 2018, as it reported a net income of $39.3 million, or 9 cents per share, compared to a loss of $7.7 million, or 2 cents, a year earlier.

The company said it had 14.6 million paid subscribers at the end of the first quarter, in line with estimates of 14.61 million subscribers, according to research firm FactSet.

Revenue rose 18% to $455 million, beating analysts’ average estimate of $452.2 million for the quarter ended March 31, according to IBES data from Refinitiv.

Excluding items, it earned 17 cents per share, above expectations of 14 cents per share.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Vinay Dwivedi)