Dropsuite Ltd. ( (EXMXF) ) has released its Q4 earnings. Here is a breakdown of the information Dropsuite Ltd. presented to its investors.
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Dropsuite Ltd. is a global cloud software provider specializing in backup, recovery, and protection of business information, leveraging secure and scalable cloud technologies to serve IT Service Providers worldwide.
In its latest earnings report for the quarter ending December 2024, Dropsuite Ltd. reported significant growth, highlighting a record increase in Annual Recurring Revenue (ARR) and user base expansion. The company continues to strengthen its market position amidst rising cybersecurity threats and stringent data regulations.
Key financial metrics reveal a 37% year-over-year increase in ARR, reaching $49.8 million, and a notable 42% growth in the paid user base, now totaling 1.65 million users. The company achieved a product gross margin of 70% and maintained a churn rate below 3%, reflecting strong customer retention. The company remains financially robust with $28.6 million in cash and no debt.
Operationally, Dropsuite added a record 165,000 new paid users in the quarter, largely driven by its active partner onboarding and new product launches, such as the Bring Your Own Storage (BYOS) service. The company also released a new backup product for Entra ID, with monetization expected in early 2025, as part of its ongoing product innovation strategy.
Looking ahead, Dropsuite aims to sustain its growth trajectory by continuing to invest in research and development, expanding its product offerings, and exploring potential mergers and acquisitions. The company is committed to delivering profitable ARR growth while maintaining positive cash flow and profitability.
