Page 1

Dropbox Announces Second Quarter Fiscal 2021 Results Second Quarter Revenue of $ 530.6 Million , Up 13.5 % Year - over - year GAAP and Non - GAAP Operating Income of $ 84.4 Million and $ 169.4 Million , Up 558.4 % and 76.1 % Year - over - year Net Cash Provided by Operating Activities of $ 219.9 Million and Free Cash Flow of $ 216.0 Million SAN FRANCISCO , Calif . - August 5 , 2021 - Dropbox , Inc. ( NASDAQ : DBX ) , today announced financial results for its second quarter ended June 30 , 2021 . " Q2 was a standout quarter , driven by strong revenue growth , record free cash flow , and margin expansion , " said Dropbox Co Founder and Chief Executive Officer Drew Houston . " Our results reflect the strength of our business model and our ability to make significant progress on our strategic objectives . We're proud of our execution this quarter as we delivered even more value to our customers and shareholders and are excited about the opportunity ahead to build next - generation tools to support the new world of distributed work . " Second Quarter Fiscal 2021 Results Total revenue was $ 530.6 million , an increase of 13.5 % from the same period last year . On a constant currency basis , year - over - year growth would have been 11.4 % . ( ¹ ) Total ARR ended at $ 2.166 billion , an increase of $ 53.8 million quarter - over - quarter and an increase of 12.2 % year over - year . On a constant currency basis , year - over - year growth would have been 10.6 % . ( 2 ) Paying users ended at 16.14 million , as compared to 14.96 million for the same period last year . Average revenue per paying user was $ 133.15 , as compared to $ 126.88 for the same period last year . GAAP gross margin was 79.8 % , as compared to 78.1 % in the same period last year . Non - GAAP gross margin was 81.2 % , as compared to 79.2 % in the same period last year . GAAP operating margin was 15.9 % , as compared to 2.7 % in the same period last year . Non - GAAP operating margin was 31.9 % , as compared to 20.6 % in the same period last year . GAAP net income was $ 88.0 million , as compared to $ 17.5 million in the same period last year . Non - GAAP net income was $ 160.5 million , as compared to $ 93.2 million in the same period last year . Net cash provided by operating activities was $ 219.9 million , as compared to $ 145.9 million in the same period last year . Free cash flow was $ 216.0 million , as compared to $ 119.8 million in the same period last year . GAAP diluted net income per share attributable to common stockholders was $ 0.22 , as compared to $ 0.04 in the same period last year . Non - GAAP diluted net income per share attributable to common stockholders was $ 0.40 , as compared to $ 0.22 in the same period last year . ( 3 ) Cash , cash equivalents and short - term investments ended at $ 1.944 billion . ( ¹ ) We calculate constant currency revenue growth rates by applying the prior period weighted average exchange rates to current period results . ( 2 ) We calculate total annual recurring revenue ( " Total ARR " ) as the number of users who have active paid licenses for access to our platform as of the end of the period , multiplied by their annualized subscription price to our platform . We adjust our exchange rates used to calculate Total ARR on an annual basis , at the beginning of each fiscal year . We calculate constant currency Total ARR growth rates by applying the current period rate to prior period results . ( 3 ) Non - GAAP diluted net income per share attributable to common stockholders is calculated based upon 397.0 million and 420.5 million diluted weighted - average shares of common stock for the three months ended June 30 , 2021 and 2020 , respectively .