(Reuters) – The filesharing and storage company Dropbox Inc ( DBX.O ) has surpassed Wall Street's expectations for quarterly results and outperformed paying subscriber estimates in its first financial report as a publicly traded company.
However, the company's stock, which had risen 10 percent this week the profit slipped 4 percent in extended trading on Thursday.
The San Francisco-based company announced that the number of paying subscribers increased 23.7 percent to 11.5 million at the end of March, according to Thomson Reuters I / B / E / S Exceeds 11.3 million.
The company, which began as a free service to share and store photos, music and other large files, has been working to build its enterprise software offering.
Dropbox reported ARPU for the first quarter of $ 114.3, exceeding the analyst estimate of $ 110.
"(ARPU Growth) suggests that Dropbox manages to turn single paid users into business-paid users," D.A. Davidson analyst Rishi Jaluria said.
The Company Incorporated with Alphabet Inc ( GOOGL.O ) Google, Microsoft Corp. ( MSFT.O ) and Amazon.com Inc ( AMZN.O [19459028) and Box Inc ( BOX.N ), forecast sales of $ 328 million and $ 331 million for the current quarter.
Analysts expected sales of $ 324.9 million.
"Today's profits are also promising for existing investors who are still in their lock-up phase," said Minal Hasan, an investor in K2 Global, a Silicon Valley-based venture capital firm, in Startup Company invests.
Dropbox's quarterly loss widened to $ 465.5 million as it posted IPO-related spendings.
The company made a blockbuster debut on March 23, when investors made their biggest technology IPO after more than a year, with stocks closing more than 35 percent on their first day of trading.
On an adjusted basis, the company earned 8 cents a share, exceeding estimates of 5 cents.
Total revenue increased 28 percent to $ 316.3 million, ahead of estimates of $ 309.2 million.
Reporting by Munsif Vengattil in Bengaluru; Arrangement of Sriraj Kallowila