Shares of Dropbox Inc. (DBX  were spiking after quarterly earnings for the cloud software company beat analysts' expectations and the company showed progress on several fronts. 

The stock popped 5.4% to $26.07 a share on Friday, Nov. 9. 

Dropbox reported an adjusted profit of 11 cents a share; on a GAAP basis the company reported a loss of 1 cent. The adjusted figure was well above Wall Street's profit expectations of 6 cents a share, and above last-year's profit of 7 cents. Revenue in the quarter was $360.3 million, handily beating estimates of $352.8 million.

Dropbox also raised its full-year revenue guidance to a range of $1.38 billion to $1.39 billion. The previous range was $1.36 billion to $1.37 billion. 

Perhaps just as important as the beat-and-raise was the strength Dropbox showed with customers. The company saw an 18% increase in users year-over-year to 12.3 million from 10.4 million. Dropbox also raised the price it charges users per year to $118.60 from $112.05, helping propel gross margins to 75% from 68.1% in the year-ago period. 

Dropbox went public in late March and traded at $28 a share on its first day of trading. After surging to $42 a share in mid-June, it quickly dropped back down to $26 in late July, and has settled near that level.