As of September 30, 2024, Dropbox, Inc. reported total revenue of $638.8 million for the third quarter, a slight increase from $633.0 million in the same period of 2023. For the nine months ended September 30, 2024, revenue reached $1,904.6 million, up from $1,866.6 million year-over-year. The growth in revenue is attributed to an increase in paying users and a higher mix of sales towards premium subscription plans.
Gross profit for the third quarter was $527.3 million, compared to $513.4 million in the prior year, reflecting a gross margin improvement due to a decrease in the cost of revenue, which fell by 6.8% to $111.5 million. Operating expenses for the third quarter increased to $399.5 million from $382.7 million, leading to income from operations of $127.8 million, down from $130.7 million in the same quarter of 2023. However, for the nine-month period, income from operations rose significantly to $398.3 million from $271.3 million in the previous year.
Net income for the third quarter was $106.7 million, a decrease from $114.1 million in 2023, while net income for the nine months increased to $349.5 million from $226.3 million. Basic and diluted net income per share for the third quarter remained stable at $0.34, while for the nine months, it rose to $1.08 from $0.66 in the prior year.
Dropbox's total current assets decreased to $1,045.5 million as of September 30, 2024, down from $1,516.6 million at the end of 2023. Cash and cash equivalents also declined to $517.6 million from $614.9 million. The accumulated deficit increased to $(2,993.0) million, and total stockholders' deficit rose to $(546.1) million.
Strategically, Dropbox announced a significant reduction of its global workforce by approximately 20% on October 30, 2024, aimed at aligning with long-term growth and profitability objectives. This follows a previous workforce reduction of about 16% in 2023. The company also completed the acquisition of Reclaim.ai Inc. for $40.2 million in cash, which is expected to enhance its product offerings.
The company’s total annual recurring revenue (ARR) as of September 30, 2024, was $2,579 million, reflecting growth from $2,523 million at the end of 2023. However, the growth rate of paying users has shown signs of decline, influenced by competitive pressures and macroeconomic conditions.
About DROPBOX, INC.
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