According to a recent report, the global Enterprise File Sharing and Synchronization market is expected to grow at a CAGR of 20.7% over the next five years. Dropbox (Nasdaq: DBX) recently announced its first-quarter results that continued to outpace market expectations.

Dropbox’s Financials

Revenues for the quarter grew 13% to $511.6 million, ahead of the market’s forecast of $505.19 million. Net income was $47.6 million compared with a net income of $39.3 million a year ago. Non-GAAP EPS was $0.35 per share compared with the market’s expectations of $0.05.

Among operating metrics, ARR grew 13% to $2.112 billion. Paying users grew from 14.59 million a year ago to 15.83 million for the quarter and average revenue per paying user increased from $126.30 to $132.55.

For the second quarter, Dropbox expects revenues between $522-$525 million, with the market’s estimate at $520 million. For the fiscal year, Dropbox expects revenues of $2.118-$2.130 billion. The market expects $2.1 billion.

Dropbox’s Product Upgrades

Recently, Dropbox announced the release of Dropbox Passwords to all of its users. Even with a basic plan, users will be able to try a limited version of Passwords. With the service, users will have the ability to store their important passwords in one space, while also being able to access passwords from anywhere due to automatic synching on up to three devices and sharing passwords with anyone.

Dropbox is working on expanding its digital signature offerings to compete with the likes of DocuSign. It’s eSignature solution, HelloSign, now offers Qualified Electronic Signature (QES) to support customers doing business in the EU and UK. QES meets the highest standard of security and authentication in Europe and is the only electronic signature that is treated at par with handwritten signatures. It has also partnered with IDnow to enable face-to-face identity verification and the Trusted Service Provider (TSP) Namirial for digital certification. The face identity solution is needed for some specific use cases such as loan, lease, and rental agreements in the EU and UK.

Its stock is trading at $29.28 with a market capitalization of $11.7 billion. It had climbed to a 52-week high of $30.00 earlier this month. It had fallen to a 52-week low of $17.66 in November last year.