Dropbox, Inc. (NASDAQ:DBX) Q1 2019 Earnings Conference Call Transcript

May 09, 2019 • 05:00 pm ET


Dropbox, Inc. (NASDAQ:DBX) Q1 2019 Earnings Conference Call Transcript


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Good afternoon, ladies and gentlemen. Thank you for joining Dropbox's First Quarter 2019 Earnings Conference Call. All participants will be in a listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. As a reminder, this conference call is being recorded, and will be available for replay from the Investor Relations section of Dropbox's website following this call.

I will now hand the call over to Darren Yip, Dropbox's Head of Investor Relations. Please go ahead.

Darren Yip

Thank you. Good afternoon, and welcome to Dropbox's first quarter 2019 earnings call. Today, Dropbox will discuss the quarterly financial results that were distributed earlier.

Statements on this call include forward-looking statements, including statements relating to the expected performance of our business, future financial results, strategy, long-term growth and overall future prospects. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those projected or implied during this call.

In particular, those described in our Risk Factors included in our Form 10-K for the year ended December 31, 2018. You should not rely on our forward-looking statements as predictions of future event. All forward-looking statements that we make on this call are based on assumptions and beliefs as of today, and we undertake no obligation to update them except as required by law.

Our discussion today will include non-GAAP financial measures. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results. A reconciliation of GAAP to non-GAAP results may be found on our earnings release, which was furnished with our Form 8-K filed today with the SEC and may also be found in the supplemental investor materials posted on our Investor Relations website at investors.dropbox.com.

I would now like to turn the call over to Dropbox's Co-Founder and Chief Executive Officer, Drew Houston. Drew?

Andrew Houston

Thanks, Darren. Good afternoon, everyone, and welcome to our earnings call. On the call with me is Ajay Vashee, our Chief Financial Officer; and Yamini Rangan, our Chief Customer Officer, will also join us during Q&A.

Today, I'll talk about our business and product highlights and the continued expansion of our ecosystem. Ajay will review our Q1 financial results such on our go-to-market strategy and offer guidance for Q2 and fiscal 2019.

In Q1, we saw strong results across our business. Revenue grew 22% year-over-year, driven by continued paying user growth and ARPU expansion. We also closed our first acquisition as a public company, adding that HelloSign team to the Dropbox family. And we accomplished all this while delivering a robust non-GAAP operating margin. These results continue to demonstrate the strength of our global collaboration platform, our efficient go-to-market strategy and our operational discipline.

So let's begin with our product update. We're building a collaborative workspace by bringing together content and all the communication and coordination around it. Over the last few months, we delivered a number of innovations that make the Dropbox experience