The online file storage and collaboration company Dropbox has posted its earnings results for the fourth and final quarter of 2020, showing milestones including topping $500 million in quarterly revenue for the first time ever and crossing a $2 billion annual recurring revenue (ARR) rate.

Dropbox posted $504.1 million in sales in Q4 2020, up 13% year-over-year. The company ended the quarter with 15.48 million paying users, compared to 14.31 million for the same period last year.

Though Dropbox posted record revenues, the company slipped down from three consecutive quarters of profitability to a big loss of $345.8 million in Q4 which’s primarily due to a $398.2 million one-time real estate charge as Dropbox shifts its focus from in-office to remote work. 

The real estate charge stems from the estimated difference over the remaining terms of Dropbox’s office leases and the rent it thinks it can obtain from future sub-leases of office space that it won’t require as it shifts more to remote work. In actuality, Dropbox may not have lost the reported $398.2 million given that it could recoup some of that money from sub-leasing the office space that it’s already leased but will then not need to others. Due to accounting principles though, it has to record the one-time charge as a loss.

With its big net loss of $345.8 million in Q4 2020, Dropbox posted an overall net loss of $256.3 million in the whole of 2020 despite having had three consecutive profitable quarters in Q1, Q2, and Q3.

In 2020, Dropbox posted $1.9 billion in revenue, up 15% over the year and a record for the company. The company ended the year with $1.12 billion in cash and short-term investments on its balance sheet.

Related;

• Dropbox To Lay Off 11% Of Employees

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