Dropbox noted much better-than-predicted fourth quarter economical results on Thursday and surpassed $2 billion in annual recurring earnings for the very first time. The cloud-based mostly file sharing organization shipped a web reduction of $345.8 million, or 84 cents a share, on profits of $504.1 million, up 14%. Non-GAAP earnings were being 28 cents for each share.

Wall Avenue was expecting earnings of 24 cents a share with revenue of $498 million. The organization mentioned that it recorded impairment charges of $398.2 million in Q4 stemming from its “Virtual Initially” policy pertaining to lasting remote function. The firm is subleasing a portion of its business spaces and had to settle expenses for proper-of-use and other lease connected property. 

Shares of Dropbox were being up all-around 2% in soon after several hours trading. 

The business explained having to pay end users now sit at 15.48 million, as in contrast to 14.31 million for the exact same period last calendar year. Common revenue for every spending user was $130.17, up from $125 per person for the same interval final yr. Dropbox reported ARR arrived to $2.022 billion, an maximize of 11% 12 months-above-calendar year. 

For the complete fiscal year 2020, non-GAAP earnings have been 93 cents for every share on earnings of $1.914 billion, an boost of 15% 12 months-over-12 months. The company said its board has permitted the repurchase of an more $1 billion of its Class A typical stock.

Wanting in advance, analysts anticipate Dropbox to report initial quarter earnings of 22 cents for each share on earnings of $503.69 million. Dropbox is keeping its outlook until its convention get in touch with this afternoon. 

“2020 was a transformational yr for Dropbox and I am proud of the team for their resilience and aim in addressing our customers’ evolving requirements,” explained Dropbox CEO Drew Houston. “We finished the yr with strong margin growth, free funds circulation, and more than $2B in ARR as we ongoing to make development towards our extensive-expression financial targets. Heading into 2021, we are centered on executing from our tactic and setting up critical merchandise for the new era of dispersed work.”