According to a Market and Market research report, the Enterprise Collaboration Market is estimated to grow at 9% CAGR to $48.1 billion by 2024 from $31 billion in 2019. Growth is expected to be driven by the higher adoption of social networking websites and the usage of mobile devices for enterprise collaboration. Dropbox (Nasdaq: DBX) is a leading player in the industry that is gearing up its product portfolio to meet this growing demand for collaboration.

Dropbox’s Financials

Dropbox’s third quarter revenues grew 19% to $428.2 million, ahead of the market’s forecast of $423.5 million. Net loss grew to $17 million compared with a net loss of $5.8 million a year ago. On an adjusted basis, net income was $0.13 per share, compared with the market’s estimate of $0.11 per share.

Among operating metrics, it ended the quarter with 14 million subscribers, ahead of the market’s expectations of 13.89 million subscribers and previous year’s 12.3 million subscribers. Average Revenue per User (ARPU) grew to $123.15, ahead of the market’s expectations of $122.82. Its deferred revenue, which measures future business for subscription-based software vendors, was $541.1 million, again ahead of the Street’s estimates of $534 million.

Dropbox’s Product Expansion

Dropbox continued to expand its product offerings as it released several new upgrades in the last quarter. It released Dropbox Spaces, a workspace offering that transforms the traditional shared folder experience into a connected workspace for all cloud content. It uses machine intelligence to surface the work that’s important to the user when they need it. It allows users to have all their cloud content, including files in one place. It also comes with a smart image search so that users can save time finding the images they need by searching what they see in the image.

Additional features included in the service include Team highlights that give users visibility into the most relevant activity from their colleagues. It leverages machine intelligence to help them stay ahead by suggesting the content they’re most likely to need. It has a calendar integration that helps users prepare for meetings more effectively by suggesting related content for upcoming meetings. Users can add context to content by writing overview descriptions, to do’s, and key milestones right on the folder.

Besides launching a new offering, Dropbox also added several enhancements to its existing offerings. For instance, it has now built support for Paper natively into the Dropbox so that users can create, search, and organize their paper docs. To help users get enhanced support for their content, Dropbox launched support from Microsoft teams. It also added several other new partner apps that include Gmail, FreshBooks, Docstand, and Notarize to help users take more actions on Dropbox files. Support for these new apps will be seamless so that users can add content to email or chats, manage receipts, or track file interactions in notarized docs.

Last month, Dropbox also announced a partnership with DocSend, a secure document sharing platform. As part of the agreement, the two will work together to provide Dropbox users with direct access to DocSend’s secure sharing, tracking, and document analytics features. Dropbox users will be able to use page-by-page document analytics, along with additional security features such as passcode protection, email verification, and link forwarding notifications from within Dropbox.

Its stock is trading at $18 with a market capitalization of $7.5 billion. It had climbed to a 52-week high of $26.49 in July last year. It had fallen to a 52-week low of $16.08 in December last year. The company’s valuation is still a far cry from the $10 billion valuation it had achieved in 2014. Dropbox is counting on the slew of product upgrades to pull its valuation back up.