Dropbox DBX reported first-quarter 2021 non-GAAP earnings of 35 cents per share, which beat the Zacks Consensus Estimate by 16.7%. The bottom line surged 106% from the figure reported in the year-ago quarter.Revenues of $511.6 million beat the Zacks Consensus Estimate by 1.3%. The top line increased 12% on a year-over-year basis. On a constant-currency basis, revenues increased 11% year over year.Following the announcement, shares of Dropbox were up 0.7% on May 7. In the past year, the stock has returned 7.6% compared with the industry’s rally of 57.3%.Dominion Energy Inc. Price, Consensus and EPS Surprise Dominion Energy Inc. price-consensus-eps-surprise-chart | Dominion Energy Inc. Quote Quarter in DetailsAverage recurring revenues or ARR was $2.112 billion, up 13% (up 12% on constant currency) on a year-over-year basis. Increases in paying users and adoption of premium plans drove ARR growth.Paying users came in at 15.83 million, up 8.5% on a year-over-year basis.Average revenues per user (ARPU) stood at $132.55 in the first quarter of 2021, up 4.9% year over year.Notably, HelloSign witnessed strong traction in the quarter under review. HelloSign now boasts 21 additional languages and management expects the product to gain a solid footing in international markets, courtesy of the extensive awareness campaign. HelloSign is an e-signature vendor that was acquired by Dropbox for $230 million in 2019.In first-quarter 2021, the company completed the acquisition of DocSend for $165 million. With the buyout, Dropbox is looking to expand its digital solutions’ portfolio to assist enterprises manage important business-related documents amid ongoing remote work trend.In the quarter under review, the company rolled out freemium version of passwords for its basic users.Operating resultsDropbox’s non-GAAP gross margin in the quarter was up 190 basis points (bps) year over year to 80.2% in the first quarter of 2021.Meanwhile, total non-GAAP operating expenses amounted to $261.7 million, down 7.6% on a year-over-year basis.The company reported non-GAAP operating margin of 29.1% compared with 16.1% reported in the prior-year quarter.Balance Sheet & Cash FlowAs of Mar 31, 2021, Dropbox’s cash and cash equivalents (and short-term investments) came in at $1.916 billion compared with $1.121 billion as of Dec 31, 2020.In the first quarter, net cash provided by operating activities came in at $116 million compared with $170.7 million reported in the prior quarter.Free cash flow was $109 million in the first quarter compared with $158.4 million reported in the prior quarter.In the first quarter of 2021, Dropbox completed its existing $600-MILLION share buyback plan. Additionally, the company had announced a $1-BILLION share repurchase authorization in the fourth quarter of 2020. At the end of first quarter, the company has $970 million shares left under the repurchase program.GuidanceDropbox expects second-quarter 2021 revenues in the range of $522-$525 million. The Zacks Consensus Estimate is pegged at $520 million.Further, the non-GAAP operating margin for the second quarter is projected between 27.5% and 28%.For 2021, revenues are expected in the range of $2.118-$2.130 billion compared with earlier guidance of $2.095-$2.115 billion. The Zacks Consensus Estimate is pegged at $2.1 billion.Non-GAAP operating margin is expected to be 27-28% for the year.For 2021, free cash flow is now estimated in the range of $670-$690 million compared with previous guidance of $645-$655 million.Zacks Rank & Other Stock to ConsiderDropbox currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks in the broader technology sector are Agilent Technologies A, Pure Storage PSTG and NVIDIA NVDA. All the stocks carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Agilent scheduled to report quarterly results on May 25, while NVIDIA and Pure Storage are slated to announce results on May 26.Long-term earnings growth rate of Agilent, Pure Storage and NVIDIA is pegged at 9%, 52.2% and 15.1%, respectively.Zacks Top 10 Stocks for 2021In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.Access Zacks Top 10 Stocks for 2021 today >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Agilent Technologies, Inc. (A): Free Stock Analysis Report Pure Storage, Inc. (PSTG): Free Stock Analysis Report Dropbox, Inc. (DBX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research