Dropbox growth remained steady in Q3 📦

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Dropbox delivered steady Q3 growth (3 minutes read)

Dropbox recorded a 7.4% increase in year-over-year Q3 revenue of $591 million vs. $586.16 million S&P Capital IQ Consensus. Non-GAAP EPS was $0.43, $0.05 better than the S&P Capital IQ Consensus of $0.38.

GAAP and Non-GAAP operating income was $89.3 million and $186.7 million, up 15.5% and 16.0% year-over-year. GAAP gross margin was 81.4% vs. 79.6% year-over-year. Non-GAAP gross margin was 82.9%, vs. 81.0% year-over-year.

Total ARR ended at $2.431 billion, an increase of $98.0 million quarter-over-quarter and 9.6% year-over-year. On a constant currency basis, year-over-year growth would have been 10.2%.

Paying users ended at 17.55 million, as compared to 16.49 million for the same period last year. The average revenue per paying user was $134.31, compared to $133.79 for the same period last year.

72% of European banks will seek to outsource payments services to SaaS models in the next 5 years (2 minutes read)

As the frequency of digital transactions continues to rise, and NBFIs, fintech companies, and digital banks pose challenges to traditional banks, they feel pressure to drive innovation and improve margins.

Tiotevry, a leading Finnish IT company, sees 72% of European banks moving (in part or in whole) the payments value chain to SaaS in the next five years. These claims are based on a survey to which senior decision-makers in more than 65 European banks responded.