August 8, 2019 / 9:03 PM / 6 months ago

UPDATE 1-Dropbox reports wider net loss, paying users up

(Adds details on adjusted profit, share movement)

Aug 8 (Reuters) - Dropbox Inc on Thursday reported a wider second-quarter net loss and said the number of users paying for its file sharing services rose slightly from the previous quarter.

Shares of Dropbox fell about 6% in extended trading.

Net loss widened to $ 21.4 million, or 5 cents per share, for the second quarter ended June 30, from $4.1 million, or 1 cent per share, a year earlier.

The company, which competes with Alphabet Inc's Google, Microsoft Corp as well as Box Inc, has relied on its freemium model to attract more customers. The model allows customers to use basic features of the platform for free, but charges for additional services.

The file sharing platform has been unable to attract more paid users despite its try-to-buy freemium offer, strengthening market concerns about its inability to convert users into paid users.

Dropbox said the number of paying users rose to 13.6 million from 13.2 million in the prior quarter and 11.9 million a year earlier. Analysts had expected 13.4 million paying users, according to FactSet.

Average revenue per user rose to $120.48, narrowly missing estimates of $120.8, according to IBES data from Refinitiv.

Dropbox's revenue rose 18% to $401.5 million, beating the average analyst estimate of $400.9 million, according to IBES data from Refinitiv.

Excluding items, it earned 10 cents per share, above expectations of 8 cents per share. (Reporting by Neha Malara in Bengaluru; Editing by Arun Koyyur)

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