Dropbox, Inc. (NASDAQ:DBX) Q2 2019 Earnings Conference Call Transcript

Aug 08, 2019 • 05:00 pm ET

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Dropbox, Inc. (NASDAQ:DBX) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen. Thank you for joining Dropbox Second Quarter 2019 Earnings Conference Call.

[Operator Instructions]

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

Analyst
Sean Handrahan

Thank you. Good afternoon and welcome to Dropbox's Second 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-Q for the quarter ended March 31st, 2019, and the risk factors that will be included in our Form 10-Q for the quarter ended June 30th, 2019. You should not rely on our forward looking statements as predictions of future events. 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 in 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?

Executive
Drew Houston

Thanks, Darren. Thanks, Darren. Good afternoon, everyone. And welcome to our earnings call. On the call with me is Ajay Vashee, our Chief Financial Officer; 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 Q2 financial results, touch on our go-to-market strategy, and provide guidance for Q3 and fiscal 2019.

In Q2, we delivered strong results across our business. Revenue grew 18% year over year driven by paying user growth and ARPU expansion. We also generated robust margins as we continue to deliver a balance of both growth and profitability. 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 where we've had a number of exciting announcements. In Q2, we unveiled the new Dropbox. We believe that there's a lot of room for improvement in the experience of using technology at work, and we think the new Dropbox can help make that experience a lot better for our users. Because while there are new tools and productivity apps that are meant to help us work better