The global Enterprise File Sharing and Synchronization market is expected to grow from $3.4 billion in 2020 at a CAGR of 21.6% to $13.8 billion by 2027. Dropbox (Nasdaq: DBX) recently announced its second quarter results that continued to outpace market expectations.

Dropbox’s Financials

Revenues for the second quarter grew 13.5% to $530.6 million, ahead of the market’s forecast by 1.26%. It reported a net income of $88 million compared with a net income of $17.5 million a year ago. Non GAAP EPS was $0.40 per share compared with the market’s expectations of $0.33.

Among operating metrics, ARR grew 12.2% to $2.166 billion. Paying users grew to 16.14 million from 14.96 million a year ago. Average revenue per paying user increased from $126.88 to $133.15.

For the third quarter, Dropbox expects revenues of $522-$525 million, with the market’s estimate at $537.96 million. For the fiscal year, Dropbox expects revenues of $2.118-$2.130 billion while the market expects $2.12 billion.

Dropbox’s Product Expansion

Dropbox recently announced three new products, Dropbox Capture, Dropbox Relay, and Dropbox Shop. Capture is an all-in-one visual communication tool that provides the ability to share short video messages. It allows users to replace emails and documents with short video messages to communicate with their teams in lesser time. Users can leverage easy-to-take screen recordings, GIFs, and screenshots to convey context and connect with their teams. Given that a lot of organizations are still working remote, the video message capability helps employees manage their updates and work progress more efficiently with their teams.

Dropbox Relay is another video collaboration tool that simplifies the process of sharing video content with teams. Relay allows teams to share a video without needing to download it, and feedback on the video does not need separate notes. It also enables users to manage and track progress on all video projects.

Dropbox Shop is a product that focuses on digital content creators. It allows them to sell digital content that has been previously stored in a Dropbox folder. Content creators can easily create product listings, add content directly from Dropbox or their computers, and determine the content’s price. It lets them automatically deliver content upon payment so that the creators don’t have to manage facilitating payments and delivering content with customers. Product listings can also be shared directly with customers or through social media, while ensuring that the creators maintain ownership over their customer base. Additionally, Shop will have analytic capabilities to allow creators to evaluate their listings on sale volumes, views, and revenues. Shop is currently available in beta stage.

Its stock is trading at $27.84 with a market capitalization of $11.1 billion. It had climbed to a 52-week high of $33.00 in August. It had fallen to a 52-week low of $17.66 in November last year.