Dropsuite (DSE) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly growth in Q4 2024, with paid users expanding to 1.65 million and 165,000 new paid users added, nearing 2 million total.

• Annual Recurring Revenue (ARR) reached $49.8m AUD, up 45% year-over-year and 9% quarter-over-quarter (constant currency).

• Announced a Scheme Implementation Deed for an all-cash acquisition by NinjaOne at AUD 0.59 per share (A$5.90 per share), valuing equity at ~A$420m and representing a 34.1% premium to last close.

• Board and major shareholder Topline (31% holding) unanimously supported the deal, subject to no superior proposal and positive independent expert opinion.

• Dropsuite delivers secure, scalable cloud backup solutions, serving users in over 100 countries with more than 780 direct partners.

Financial highlights

• ARR reached $49.8m AUD in Q4 FY24, up 17% sequentially and 45% year-over-year; USD ARR at $31.5m, up 9% sequentially and 37% year-over-year.

• Gross margin at 70%, up 100bps quarter-over-quarter and 19% year-over-year, with product gross margin maintained.

• Paid users grew to 1.65 million, with churn rate stable below 3%.

• Net cash generated from operations was $2.3m, up 194% sequentially; normalised operating cashflow at $0.32m.

• Cash balance of $28.6m at 31 December 2024, with no debt.

Outlook and guidance

• Expects continued strong ARR growth driven by existing partners, new product launches, and ongoing R&D and go-to-market investments.

• Monetisation of new Entra ID backup product to begin late Q1 2025.

• Guidance maintained for positive cashflow and profitability in FY25.

• Integration with NinjaOne anticipated, with current leadership likely to remain during the transition.