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This statistic highlights Dropbox’s Average Revenue Per Paying User (ARPU), reported from Q1 2017 onwards.
Dropbox Inc. is an American company that provides online file storage and sharing services. The company’s offerings include cloud storage, file synchronization, personal cloud, and client software. Dropbox uses a business model wherein a free account is offered with limited storage and paid subscriptions are required to gain access to more storage. Free users get 2 GB storage space whereas premium users are offered 2TB storage space along with other additional features such as advanced sharing, remote wipes, etc.
The number of paying users of Dropbox has been increasing every year. As of the end of 2019, they had around 14.3 million paying users which was a 12% growth from the previous year where they had 12.7 million paying users. Revenue for the company in 2019 was about $1.66 billion, which was almost 19% more than 2018’s revenue of $1.31 billion.
Back in 2016, the ARPU (Average Revenue per user) for paying users was $110.54. It has only been increasing since then. In the first quarter of 2017, the ARPU for paying users was $110.79 and then increased to $111.19 in the second quarter, $112.05 in the third quarter after which the ARPU saw a slight dip to $111.91 in the last quarter of 2017. The ARPU for paying users for the year was $111.91.
The ARPU for paying users continued to increase in 2018. In the first quarter, the ARPU went up to $114.30 and continued to rise to $116.66 in the second quarter and $118.60 in the third quarter and then dropped down slightly to $117.64 in the last quarter. The ARPU for paying users for the year was $117.64.
The upward trend of the ARPU for paying users continued into 2019 as ARPU went up to $121.01 in the first quarter, and fell marginally to $120.48, but was still above last year’s average. It started to grow again after the second quarter and increased to $123.15 in the third quarter and $123.07 by the end of 2019. The ARPU for paying users for the year was $121.90. The ARPU grew to $126.30 by the first quarter of 2020.
Paying users to form only about 2.3-2.5% of all of Dropbox’s registered users. The percentage has been slowing down in recent years. The only positive from the paying user’s portion of Dropbox is that the ARPU for paying users has come a long way and is expected to continue to increase. The ARPU has increased by more than 10% over the last 4 years.Dropbox has been trying to tackle this problem and has introduced many new features over the years like Dropbox Paper, Dropbox Space where team members can not only share files but also create shared team workspaces, Dropbox Carousel which is a photo gallery app, etc. Dropbox now has to focus on attracting new paying users and retaining the current paying users to continue to use their paid services. On the positive side, Dropbox beat market expectation of its performance in the last quarter of 2019. With the increase in usage of online storage and other internet technology, Dropbox has a lot of potentials to grow in the coming years.
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