(Bloomberg) — Dropbox Inc. reported revenue that beat analysts’ estimates, benefiting from increased demand for cloud software amid a shift to working from home due to the coronavirus. The company also announced Chief Financial Officer Ajay Vashee is stepping down effective Sept. 15, sending the shares tumbling in extended trading.
The San Francisco-based file-sharing company said sales rose 16% in the second quarter to $467.4 million. Dropbox reported its second consecutive quarter of profits, with net income of $17.5 million, or 4 cents a share, in the three months ending June 30, compared with a loss of $21.4 million, or 5 cents a share, in the year earlier period.
Analysts’ had forecast revenue of $465 million and a loss per share of 2 cents.
For years Dropbox has been working to cut costs and add paying customers for its software, which helps people sync and share files through the internet. Demand for such services has gotten a boost as coronavirus-related lockdowns forced employees to work remotely, creating a greater need to collaborate and pass files between office and home computers.
Dropbox now has 15 million paying users, up from 13.6 million in the same period last year. Revenue per average user was $126.88, an increase from $120.48 a year earlier.
Vashee, who has been with the company for more than eight years, will be succeeded by Tim Regan, Dropbox’s chief accounting officer. Dropbox fell about 7% in extended trading after closing at $23.27 in New York. The stock has gained 30% this year.
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