Overview of Dropsuite's Q2 FY24 performance

Dropsuite Limited (ASX: $DSE) has reported a record high quarterly user growth, with annual recurring revenue (ARR) reaching $39.9 million and monthly average revenue per user (ARPU) increasing by 5% compared to the previous corresponding period. The company's CEO, Charif El Ansari, expressed optimism for future growth, highlighting the return of churn to its historical level of less than 3% and the robust balance sheet positioning Dropsuite for sustainable returns to shareholders.

CEO Charif El Ansari's perspective on Dropsuite's performance

Continued growth in the global data protection market, combined with our leading position and customer-centric approach, drove record seat additions in Q2 2024. This momentum, along with continued expansion of our MSP partnerships, fuels our optimism for future growth. Furthermore, churn returned to its historical level of less than 3% after a slight uptick in the March quarter. This reflects our strong commitment to client service and support across the organisation. With a robust balance sheet, favourable market tailwinds including data security and regulation, and a highly scalable distribution channel, we are well positioned to deliver growing and sustainable returns to our shareholders.

Summary of Dropsuite's Q2 FY24 performance and outlook

Dropsuite's Q2 FY24 performance has seen a significant increase in annual recurring revenue, monthly ARPU, and record seat additions, reflecting the company's strong position in the global data protection market. The CEO's perspective on the return of churn to historical levels and the company's robust balance sheet indicates a positive outlook for future growth. Dropsuite remains focused on delivering ARR growth, incremental investment in research & development, maintaining cashflow and profitability, driving product innovation, and pursuing high conviction M&A opportunities. With a growing partner base and new product pipeline, Dropsuite is well positioned for strong annual recurring revenue growth and to maintain its leading position as a backup vendor of choice.