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Dropbox, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenue to $638.8 million from $633.0 million in the same quarter the previous year. This increase is attributed to growth in paying users and a shift towards higher-priced plans.
Cost of revenue for the quarter was $111.5 million, representing 17% of revenue, compared to 19% in the same quarter of the previous year. This decrease in cost ratio is due to a change in useful lives of infrastructure assets.
The company reported a gross profit of $527.3 million for the quarter, compared to $513.4 million in the previous year, with the increase attributed to higher revenue and lower cost of revenue.
Research and development expenses increased to $225.7 million from $216.4 million, primarily due to higher employee-related costs.
Sales and marketing expenses increased to $110.5 million from $106.3 million, primarily due to increased advertising and marketing-related expenses.
General and administrative expenses increased to $63.3 million from $60.0 million, primarily due to higher outside services costs.
Net income for the quarter was $106.7 million, down from $114.1 million in the previous year. The decrease is attributed to higher operating expenses.
Cash provided by operating activities was $680.3 million, while cash used in investing and financing activities was $330.0 million and $1,110.5 million, respectively.
Dropbox had a working capital of $1,045.5 million as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including the company's revolving credit facility and convertible senior notes.
Dropbox does not anticipate cash dividend payments to common stockholders in the near future.
The company identified potential risks related to its Virtual First work model and the impact of macroeconomic conditions on its business.
Dropbox continues to focus on expanding its product offerings and highlights its dependence on a few large customers for a significant portion of its sales.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Dropbox Inc quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.