We found that users who both send and receive content within a week and those who share content each week upgrade at higher rates. Nearly half of our new basic users come from our mobile channel. We've made improvements to the sharing experience overall, especially on mobile, where our user base continues to grow. Sharing drives retention of our existing customers, spreads Dropbox virally to new customers and generates powerful network effects. The first component he highlighted is sharing, the ‘bread and butter’ of what Dropbox does: This strategy is focused on building on the strength of the simple and intuitive core Dropbox experience to improve functionality, make collaboration more seamless and help organize users' content, tools and workflows. The results were pitched by Houston as vindication of the firm’s strategy to evolve its core business: At the end of the quarter, the firm had16.14 million paying users, up from 14.96 million a year ago. Revenue was up 13.5% year-on-year to $530.6 million, while GAAP net income was $88.0 million, against $17.5 million for he same period last year. Yesterday the firm turned in some strong Q2 numbers. At the same time, we had a lot of stability because I think Dropbox is something our customers were using before the pandemic, during the pandemic and will need after the pandemic. But we think it makes our opportunity bigger…We saw a surge in demand last year during the onset of COVID. We're all going to be in some kind of hybrid environment and things like the Delta variant will continue to make that complicated. I think it's a huge opportunity to re-think the fundamental nature of work. So we have this new mode of hybrid work and we need a new generation of tools to support it.
It's pretty clear that a large percentage of the planet, starting as of last year, will spend much more time working out of a screen than out of an office. We think the world moving to distributed work will be a big tailwind in the long run. The future of work and 'return to the office' debates continue to rage around the world, but for Dropbox CEO Drew Houston, there are big opportunities ahead whatever the outcomes are: