Dropsuite (DSE) H1 2024 earnings summary

Executive summary

• Achieved $39.9M ARR in 1H 2024, with 1.35M paid users across 100+ countries and 700+ partners.

• Revenue for the half-year ended 30 June 2024 rose 34% year-over-year to $18.9M, driven by increased user numbers and higher ARPU.

• Net profit after tax declined 67% to $273,000, reflecting higher operating expenses.

• Maintained strong balance sheet with $25.1M cash and no debt as of June 30, 2024.

• Recognized as #1 Microsoft 365 Cloud Backup provider for four consecutive years.

Financial highlights

• Revenue from operating activities rose 34% year-over-year to $18.9M in 1H FY24.

• Gross margin stable at 69%; gross profit up 34% to $13.1M year-over-year.

• Operating cashflow increased 51% to $0.93M; cash receipts up 43% to $18.3M year-over-year.

• Operating expenses increased 44% year-over-year, mainly due to staff growth and R&D investment.

• Net profit fell 67% to $0.27M; underlying EBITDA down 28% to $0.77M, reflecting higher investment.

Outlook and guidance

• Expects continued ARR growth via partner ecosystem, sales pipeline, and expanded product line.

• FY24 guidance for positive EBITDA and operating cash flow.

• Pursuing accretive M&A opportunities and internal investment to drive growth.

• Continued investment in R&D and go-to-market to sustain growth.

• Maintaining positive cashflow and profitability is a priority.