TextNow Hits $100 Million Annual Revenue Run Rate Milestone Ahead of Projections as Advertisers Target Diverse, Gen Z Audience
SAN FRANCISCO, CA AND WATERLOO, ONTARIO, July 29, 2021 (GLOBE NEWSWIRE) -- July 29, 2021 – TextNow, the leading mobile app offering free cellular and WiFi-enabled phone service, is continuing its rapid scaling, reaching a $100 million annual revenue run rate milestone (all figures USD), driven by growing advertising revenue and a 300% increase in in-app purchases (IAP). Brands are increasingly utilizing the app to reach TextNow’s diverse audience and growing Gen Z customer base, a coveted cohort of rising super consumers.
TextNow has achieved this $100 million trajectory with only $1.4 million of outside funding raised in a 2011 seed round.
“TextNow is challenging the telecom status quo and making phone service accessible to everyone,” said Derek Ting, co-founder and CEO of TextNow. “We have come through the pandemic positioned for explosive growth. We’re seeing strong tailwinds as the market rebounds after a covid-related slump, we’re growing faster than our most optimistic forecasts, and we’re more profitable than ever. The wireles industry is ripe for disruption, and our flexible, free service is resonating with consumers.”
According to eMarketer, US digital ad spending is expected to increase by 25.5% year-over-year in 2021. TextNow is significantly outpacing the industry average after a pandemic-related slowdown in the first half of 2020, with advertising revenue on track to increase by 70% this year driven by advertiser demand for TextNow’s highly engaged, young and multicultural user base and brand-safe environment.
Some of the world’s most well-known brands, including Amazon, Apple, Nike, and Disney, advertise on the TextNow app to reach more than 10 million monthly active users.
“Advertisers recognize the unique value of our young, multicultural, and culturally influential customer base,” said Ken Willner, Chief Growth Officer of TextNow. “Because we provide essential phone service, our users rely on us to stay connected and as a result, they are highly active and engaged with our app. They also recognize and embrace the value being provided by the advertisers on our platform.”
Since 2020, TextNow has added six senior executives to its ranks, including Chief Growth Officer Ken Willner, Chief Financial Officer & Chief Operating Officer Evan Fein, Senior VP of Engineering Andy Shin, VP of Monetization Josh Lustgarten, VP of Talent Suzanne Salzberg, and VP of People Kelsi Cochran.
TextNow also welcomed its first outside board members; veteran technology executive Paul Schaut and Norman de Greve, Chief Marketing Officer of CVS Health.
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