• Annual Recurring Revenue (ARR) of $53.6m, up 37% on PCP
• Paid user count grew to 1.79 million, up 45% on PCP
• Product gross margin of 69% and churn below 3%

Dropsuite Limited (ASX: DSE), a global cloud backup and archiving software provider, has reported its financial and operating performance for the quarter ending 31 March 2025. The company delivered record annual recurring revenue (ARR) of $53.6 million, up 37% on the previous corresponding period (PCP) on a constant currency basis. Dropsuite's paid user count grew to 1.79 million, an increase of 45% year-on-year, driven by growth from new and existing partners as well as the successful launch of the BYOS (Bring Your Own Storage) offering. The company maintained a healthy product gross margin of 69% and churn rate below 3%. Dropsuite continues to invest in internal initiatives, including new product development, global sales expansion, and enhanced customer service capabilities to improve the overall partner and customer experience. Key activities during the quarter included the successful rollout of the Entra ID Backup service to a significant number of existing and new partners, as well as the integration of Dropsuite's platform with leading IT service provider platforms HaloPSA and SuperOps. The company remains focused on delivering profitable ARR growth through its existing partner ecosystem, a strong sales pipeline, and an expanded product line, while also investing in research and development and go-to-market functions to sustain its growth momentum.

Dropsuite expects to maintain positive cashflow and profitability for FY25 (prior to acquisition transaction costs).

Dropsuite continues to deliver strong annual recurring revenue growth driven by its significant existing partner base and a growing pipeline of new partners and new products. The company remains focused on driving product innovation, including new product introductions, to maintain its leading position as a backup vendor of choice.