Dropbox DBX reported better-than-expected fourth-quarter revenue and earnings, driven by an 8% increase in paying users versus a year earlier, Thursday after the bell.
Dropbox posted revenue of $504.1 billion and adjusted net income of $117.9 million, or 28 cents a share, for just completed quarter.
The company had been expected to report net income of $97.8 million, or 24 cents a share, on sales of $498 million, based on a FactSet survey of 12 analysts.
In the same period a year ago the company posted earnings of 16 cents a share on sales of $446 million. It reported a loss of $17 million.
Dropbox said it ended the quarter with 15.48 million paying users, compared to 14.31 million for the same period last year. It said average revenue per paying user in the period was $130.17, vs. $125.00 for the same period last year.
The company also announced its board had approved a $1 billion share buyback plan.
“We ended the year with strong margin expansion, free cash flow, and more than $2B in ARR as we continued to make progress toward our long-term financial targets,” said Dropbox CEO Drew Houston, in a statement. “Going into 2021, we’re focused on executing against our strategy and building essential products for the new era of distributed work,” he added.
The stock fell 27 cents, or 1.1%, to $24.10 in after-hours trading.
In the regular session it rose 1.1% to $24.37.
Dropbox shares have risen about 20% since the company last reported earnings on Nov. 5.