• Annual Recurring Revenue (ARR) of $49.8m, up 37% year-over-year
• Record quarterly paid user additions of 165k, growing total to 1.65 million
• Continued strong partner ecosystem growth with 28 new direct and 169 indirect MSP partners in Q4

Dropsuite Limited (ASX: DSE), a global cloud backup and archiving software provider, has reported an outstanding performance for the quarter ending 31 December 2024. The company achieved record Annual Recurring Revenue (ARR) of $49.8 million, up 37% on the Previous Corresponding Period (PCP) on a constant currency basis. This was driven by strong paid user growth, with a record 165,000 seat adds in the quarter, growing the total paid user count to 1.65 million, a 42% increase year-over-year. For the full FY24, Dropsuite added over 480,000 paid users. The company's Monthly ARPU remained healthy at $2.52, with product gross margin at 70% and churn below 3%. Dropsuite's operational and financial performance was underpinned by continued investment in product development, global sales expansion, and enhanced customer support capabilities. The company onboarded 28 new direct and 169 indirect Managed Service Provider (MSP) partners in Q4, further strengthening its partner ecosystem. Dropsuite also launched new products, including a backup solution for Microsoft's Entra ID (formerly Azure Active Directory), which is expected to contribute to revenue from late Q1 2025. The company remains well-funded, with $28.6 million in cash and no debt as of 31 December 2024.

Dropsuite is well positioned 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 delivering profitable ARR growth, investing in R&D and go-to-market functions, driving product innovation, maintaining positive cashflow and profitability, and pursuing high-conviction M&A opportunities.