Business
Dropbox Announces Fiscal 2025 First Quarter Results
First Quarter Revenue of $624.7 Million, down 1.0% year-over-year; on a constant currency basis, down 0.6% year-over-year GAAP Operating Margin of 29.4% and
About this update from Dropbox, Inc.
[{"type":"text","content":"\nFirst Quarter Revenue of $624.7 Million, down 1.0% year-over-year; on a constant currency basis, down 0.6% year-over-year\n\nGAAP Operating Margin of 29.4% and Non-GAAP Operating Margin of 41.7%\n\nNet Cash Provided by Operating Activities of $153.8 Million and Free Cash Flow of $153.7 Million\n\n SAN FRANCISCO--(BUSINESS WIRE)--\nDropbox, Inc. (NASDAQ: DBX) today announced financial results for its first quarter ended March 31, 2025.\n\n“We’ve had a productive start to the year improving the Dash user experience and making targeted investments to simplify and strengthen our core FSS product,” said Dropbox Co-Founder and Chief Executive Officer Drew Houston. “More recently, our Spring launch introduced key new Dash features designed to solve specific pain points our customers face, including advanced video and image search and deeper integrations with essential apps. While the macro environment remains fluid, we’re focused on refining our execution and increasing our operating efficiency as we continue to capitalize on the Dash opportunity and create value for shareholders.”\n\nFirst Quarter Fiscal 2025 Results\n\n\nTotal revenue was $624.7 million, a decrease of 1.0% from the same period last year. On a constant currency basis, year-over-year revenue decreased by 0.6%.(1)\n\n\n\nTotal ARR was $2.552 billion, a decrease of 0.2% from the same period last year. On a constant currency basis, ARR was flat.(2) Utilizing the exchange rates set at the beginning of 2025, total ARR decreased $18.8 million quarter-over-quarter.\n\n\n\nPaying users was 18.16 million, flat as compared to the same period last year. Average revenue per paying user was $139.26, as compared to $139.59 for the same period last year. Paying users decreased by 60,000 paying users quarter-over-quarter.\n\n\n\nGAAP gross margin was 81.3%, as compared to 83.2% for the same period last year. Non-GAAP gross margin was 82.9%, as compared to 84.6% for the same period last year as the Company continues to support its datacenter refresh cycle. Additionally, the Company saw a smaller depreciation benefit compared to the 2024 period from the change in useful lives from four to five years of certain infrastructure and component assets which was effective January 1, 2024.(3)\n\n\n\nGAAP operating margin was 29.4%, as compared to 22.7% for the same period last year. Non-GAAP ...