Dropbox, Inc. (NASDAQ:DBX) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 05:00 pm ET
Good afternoon, ladies and gentlemen, thank you for joining Dropbox's Third 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.
Thank you. Good afternoon and welcome to Dropbox's third 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 June 30, 2019 and the risk factors that will be included in our Form 10-Q for the quarter ended September 30, 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.
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 Q3 financial results, touch on our go-to-market strategy and provide guidance for Q4.
In Q3, we delivered strong results across our business. Revenue grew 19% year-over-year driven by increases in both paying users and ARPU. We also drove robust margin expansion despite some non-recurring expense headwinds as we continue to deliver a balance of growth and profitability. These results further demonstrate the strength of our global collaboration platform, our efficient go-to-market strategy and our operational discipline. So let's start with our product update where we continue to make a number of exciting announcements.
As you may recall, in June we unveiled the new Dropbox a unified workspace to organize users content,