(Reuters) – Dropbox Inc. (DBX.(O) beat analysts ‘ estimates for third-quarter sales and profit on Thursday, as the online file-hosting company-registered, individual, and corporate clients on the platform.
FILE PHOTO: The-Dropbox-app-logo is seen on a mobile phone in this illustration, the photo is 16 October 2017. REUTERS/Thomas White/Illustration
Dropbox, which competes with the Alphabet, Inc. ‘ s (GOOGL.D) work with Google, Microsoft Corp’s (MSFT.(O) as well as in the Box Inc’s (BOX.(N) to its “freemium” model, in order to attract more customers. The model provides customers with the ability to use the platform, the basic functions are for free, but charge for value-added services.
The resulting e-signature company, HelloSign, earlier this year, and has entered into a partnership with rival Microsoft and Google’s file storage platform, with the aim of expanding the range, and convert free users into paying customers.
Dropbox had 14 million subscribers at the end of the quarter, up from 12.3 million a year earlier and ahead of estimates of 13.89 million, according to FactSet.
The average revenue per user rose to $123.15, the defeat of the Refinitiv estimates of $ 122.82.
The company’s unearned revenue, which measures the activity in the future is a subscription-based software vendor had $541.1 million, above estimates of $534 million, according to IBES data, Refinitiv.
Revenue increased by 19% to $428.20 million for the third quarter, beating analysts ‘ estimates of $423.48 million, according to IBES data, Refinitiv.
However, its net loss widened to $17 million, or 4 cents per diluted share, for the three-month period ended Sept. 30, from $5.8 million, or 1 cent a share, a year earlier.
On an adjusted basis, Dropbox, earned 13 cents a share, beating analysts ‘ estimates of 11 cents a share.
The company’s shares, which in the first instance, it went up 5% in extended trading, they were down by 3%.
Reporting Munsif Vengattil in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila