DROPSUITE’S PAID USERS EXCEED 400,000 • Paid users up 33% or...

DROPSUITE’S PAID USERS EXCEED 400,000

• Paid users up 33% or 100,000 in 3 weeks

• This is primarily driven by a recently launched partnership

SINGAPORE and MELBOURNE, 5 JULY 2018: Leading cloud data backup platform for small and medium businesses (SMBs), Dropsuite Limited (ASX: DSE) (“Dropsuite” or “the Company”), reports that paid users now exceeds 400,000, up 33% from the 300,000 of paid users reported on 14 June 2018.

The high growth in new paid users is primarily coming from Dropsuite’s recently re-launched email backup product from a partnership secured in April with a large IT Service Provider. The rapid increase in paid users over this short period is driven by an extensive marketing campaign to the partner’s existing customers. While the campaign has generated a large increase in paid users and thus revenue, churn maybe higher due to more flexible 'opt-out' terms, and revenue per user will be lower due to special volume pricing for that provider. That said, we are very pleased with the scale of revenue growth with healthy gross margins.