Evernote: Desktop apps generate more revenues per user than mobile apps

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SAN FRANCISCO--Data storing company Evernote said its desktop computer apps generate more revenues per monthly user than its mobile apps. The company also said its freemium business model has been successful.

Dave Engberg, Evernote's CTO, offered a look into the startup's business during a presentation here at the Open Mobile Summit. Engberg said that Evernote's Windows and Mac applications result in the company's highest levels of user retention. In a graph showing Evernote's 12-month retention statistics, the company's Windows and Mac apps ranked highest at around 40 percent. The company's Android application clocked in at around 30 percent in the 12-month retention statistics, and the company's iOS app recorded around 25 percent retention during a 12-month period. The figure indicates the percentage of users who routinely access the application during the 12-month period, rather than those who access it once and don't return.

"Engagement is extremely important," Engberg said.

Even more important, Engberg showed numbers for Evernote's monthly revenues per active user. He said that the company's Windows and Mac apps again ranked the highest, generating slightly more than 25 cents in revenues per month per active user. Evernote's Android application generated just over 20 cents per month per active user, and its iOS application produced 20 cents in monthly revenues per active user. However, Engberg cautioned that the company's monthly revenues per active user for Android included indirect revenues from the company's partner deals. He said removing those indirect revenues would push revenues from Android down to around one-third of the revenues produced by the company's iOS application.

The figures, Engberg said, indicate that Evernote's freemium business model is legitimate.

Launched in 2008, Evernote today counts around 41 million users. The company offers its service for free across a wide variety of platforms, including desktop computer apps, smartphone and tablet apps and the Web. The company offers a layer of services for free and charges individuals $5 a month or $45 a year to access its premium services, which include offline access and additional storage space. Evernote CEO Phil Libin recently told the Wall Street Journal that the company counts 1.5 million paying customers. Libin said Evernote, which earlier this year raised $70 million in financing, is not yet profitable. He declined to provide the company's overall revenues.

For more:
- see this WSJ article (sub. req.)

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