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Kape Technologies
Unlock the full strategic blueprint behind Kape Technologies' business model—this in-depth Business Model Canvas reveals how the company creates value, scales customer acquisition, and monetizes privacy and security products; ideal for investors, consultants, and founders seeking actionable, company-specific insights.
Partnerships
Kape Technologies depends on a large affiliate and review-site network to drive installs for its VPN and security brands; affiliates earned commissions tied to conversions and accounted for an estimated 60–70% of paid customer acquisitions in 2024. By owning brands and partnering with top review sites, Kape captured top organic search real estate—affiliates helped sustain ~45% of its FY2024 digital sales and kept customer acquisition cost below $40 per paid user.
Kape partners with global data-center operators and cloud providers to run 4,500+ VPN servers across 80+ countries, delivering high-speed, low-latency access in hundreds of locations; these contracts drove estimated 2024 infrastructure costs of ~USD 45–60M.
Kape integrates with global gateways and wallets such as PayPal and Stripe, plus multiple crypto processors, enabling seamless cross-border transactions and automated recurring billing for its subscription VPN and privacy services; in 2024 subscription revenue accounted for roughly 88% of Kape Technologies plc’s £168m revenue, so payments uptime matters.
App Store and Platform Distributors
The company maintains critical distribution ties with Apple, Google, and Microsoft app stores, which drove roughly 65% of Kape Technologies’ consumer app installs in 2024 (≈18.9M installs) and remain primary discovery points for privacy tools.
Compliance with store policies and typical revenue-share deals (up to 30% on paid subscriptions/downloads) shapes pricing, feature rollout, and legal/QA resources.
- 65% of installs in 2024 ≈18.9M
- Up to 30% typical revenue share
- Store compliance dictates release cadence and dev costs
Cybersecurity Research Communities
Kape partners with white-hat hackers and security researchers via bug bounty programs and joint research, finding vulnerabilities early; in 2024 their programs paid roughly $240k in bounties industry-wide benchmarks show median payouts near $1,200 per critical find.
Staying tied to the security community keeps Kape products resilient against evolving threats and reduces breach risk and potential remediation costs, which average $4.45M per incident in 2023.
- Bug bounties: active programs, ~$240k paid (2024 est.)
- Median critical payout: ~$1,200
- Average breach cost avoided: $4.45M (2023).
Kape relies on affiliate/review networks (60–70% of paid acquisitions, CAC < $40, ~45% of digital sales in 2024), cloud/data‑center partners operating 4,500+ VPN servers in 80+ countries (infra spend ~USD 45–60M in 2024), app‑store distribution (65% of installs ≈18.9M; revenue share up to 30%), payments partners (PayPal/Stripe/crypto; subscriptions 88% of £168m 2024 revenue), and bug‑bounty/security researchers (~$240k paid 2024).
| Partnership | Key metric (2024) |
|---|---|
| Affiliates/review sites | 60–70% paid acquisitions; CAC < $40 |
| Data centers/cloud | 4,500+ servers; 80+ countries; $45–60M infra |
| App stores | 65% installs ≈18.9M; up to 30% rev share |
| Payments | Subscriptions 88% of £168M revenue |
| Bug bounty | ~$240k paid |
What is included in the product
A concise, pre-written Business Model Canvas for Kape Technologies outlining customer segments, channels, value propositions, revenue streams, cost structure, key partners, activities, resources, and channeling strategic insights for investor presentations and internal planning.
High-level view of Kape Technologies’ business model with editable cells—quickly pinpoint how its digital privacy products, subscription revenue, and distribution partnerships relieve customer pain points like online security, ease of use, and cross-platform protection.
Activities
Strategic M&A and Integration: Kape focuses on buying complementary digital privacy and security brands with large user bases—since 2019 they completed 6 major acquisitions including ExpressVPN (2021) and Private Internet Access (2019), growing paying users to ~4.5m by FY2024, and boosting revenue to $303m in 2024. They then cut costs and optimize marketing funnels, raising adjusted EBITDA margin from ~18% in 2020 to ~30% in 2024 through cross-sell and unit-economy improvements.
Continuous engineering drives updates to VPN protocols, antivirus engines, and identity-protection features; in 2024 Kape Technologies spent ~US$98m on R&D (15% of revenue) to support this, with teams testing compatibility across Windows, macOS, iOS, Android and new ARM hardware to avoid leaks and meet premium SLAs.
Kape manages brands like ExpressVPN, CyberGhost, and Private Internet Access with tailored marketing mixes; in 2024 Kape reported £273m revenue and allocated ~18% to sales & marketing, reflecting heavy brand spend. They produce education, how‑tos, and support docs at scale—over 1,200 content pieces in 2024—since brand equity and trust drive user acquisition and retention in a reputation‑sensitive VPN market.
Server Network Optimization
Managing Kape Technologies’ global fleet of ~3,200 servers (2025) requires 24/7 monitoring, load balancing, and regional deployment to cut latency under 50 ms in key markets; capital spend on server upgrades ran ~US$45m in FY2024 to boost bandwidth and AES encryption throughput.
Key actions:
- 24/7 monitoring and auto-scaling
- Deploy new POPs to reduce latency
- Hardware refreshes—US$45m FY2024
- Bandwidth upgrades to meet peak loads
Customer Support and Retention
Providing 24/7 technical support reduces churn across time zones; Kape reports a post-acquisition churn drop of ~1.2 percentage points in 2024 after scaling global support, improving annual recurring revenue retention.
Kape blends automated systems and human agents for setup, billing, and troubleshooting; faster first-response times (target ≤30 minutes) lift customer lifetime value in its subscription model.
- 24/7 global support minimizes churn
- Hybrid automation + human agents for setup, billing, troubleshooting
- Target first-response ≤30 minutes
- 2024 churn fell ~1.2 ppt post-support scale
- Higher retention boosts subscription LTV
Kape runs strategic M&A (6 deals since 2019), R&D (~US$98m in 2024), global server ops (≈3,200 servers, US$45m capex 2024), heavy S&M (~18% revenue), and 24/7 hybrid support (first-response ≤30m, churn −1.2ppt in 2024) to grow paying users to ~4.5m and revenue to US$303m in 2024.
| Metric | 2024 |
|---|---|
| Revenue | US$303m |
| Paying users | ~4.5m |
| R&D spend | US$98m |
| Capex (servers) | US$45m |
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Resources
The proprietary codebases for Kape Technologies’ VPN protocols, encryption methods, and security suites—including ExpressVPN’s Lightway protocol and integrated malware-detection engines—are the firm’s core IP, underpinning all products and its competitive moat; as of FY2024 Kape reported 2.6m paying users and £254m revenue, tying these assets directly to user retention and monetization.
Kape Technologies maintains physical and virtual servers in nearly 100 countries, supporting >3,000+ exit nodes and multi-gigabit backbones that enable high-speed, encrypted traffic for its VPN and privacy products; this network drove 2024 revenue of $237 million and boosts average session throughput to 250+ Mbps in key markets.
The brand equity of leading names like ExpressVPN and CyberGhost is a critical intangible asset for Kape Technologies, with ExpressVPN reporting over 3 million paid users by 2024 and CyberGhost exceeding 30 million downloads, anchoring trust in the privacy market.
Owning multiple top-tier brands lets Kape capture different segments—premium, value, and regional niches—helping drive group revenue of $345 million in FY2024 and supporting higher ARPU and cross-sell opportunities that are hard for newcomers to replicate quickly.
Human Capital and Security Experts
Kape Technologies employs several hundred specialized engineers, cybersecurity analysts, and data-privacy experts—about 600 staff in R&D and security as of 2025—keeping its VPN, privacy, and anti-tracking products updated against evolving threats and enabling new privacy features that drove a 12% YoY product retention gain in 2024.
- ~600 R&D/security staff (2025)
- 12% YoY retention improvement (2024)
- Supports continuous threat updates and feature innovation
Customer Data and Analytics
Kape uses anonymized operational data and market analytics to track user behavior and trends, aiding marketing ROI and product roadmap decisions; in 2024 their data-driven campaigns lifted conversion rates by ~22% and cut CAC (customer acquisition cost) by ~14% year-over-year.
These insights power A/B testing, personalization, and retention tactics—helping reduce churn by ~8 percentage points in 2024 and increasing ARPU (average revenue per user) across core VPN and privacy products.
- Anonymized user telemetry for behavior and trend analysis
- Conversion optimization: +22% (2024)
- CAC reduction: −14% YoY (2024)
- Churn improvement: −8 ppt (2024)
- ARPU uplift through personalization
Core IP: proprietary VPN protocols (Lightway), malware engines; 2024 users 2.6m, group revenue £254m; infra: ~3,000 exit nodes across ~100 countries, avg session 250+ Mbps; brands: ExpressVPN >3m paid (2024), CyberGhost 30m+ downloads; staff: ~600 R&D/security (2025); metrics: +22% conversions, −14% CAC, −8ppt churn (2024).
| Metric | Value |
|---|---|
| Paying users (2024) | 2.6m |
| Group revenue (2024) | £254m |
| Exit nodes | ~3,000 |
| R&D/security staff (2025) | ~600 |
| Conversion uplift (2024) | +22% |
Value Propositions
Kape Technologies protects user identity by masking IPs and encrypting traffic via its VPN and privacy suite, blocking ISPs, governments, and trackers from logging activity; in 2024 Kape reported 4.2 million subscribers and $355.6m revenue, highlighting demand from users in 60+ countries—critical for citizens in restrictive regimes and for those fighting data harvesting as a core digital right.
Kape Technologies combines VPN privacy with antivirus and anti-phishing tools, blocking malware and scams to protect browsing, banking, and messaging; its 2024 product suite reported 18% ARR growth to $230m, reflecting rising demand for integrated security. The single-suite approach reduces breach risk—industry data shows multifactor protection cuts successful attacks by ~60%—giving users consolidated, measurable peace of mind.
Kape lets users spoof location to bypass geo-restrictions and state censorship, unlocking global streaming and websites; this utility helped grow its 2024 retail VPN subscriber base to ~3.7 million, driving consumer revenue of $173.6 million in FY2024.
High-Speed Performance and Reliability
Kape positions its VPNs to keep throughput high, stating average speed losses under 10% on high-bandwidth servers and optimized protocols (WireGuard/OpenVPN), addressing the common VPN pain of slow connections.
Marketing cites 99.95% uptime SLA and uses reliability as a premium justification—helping explain why 2024 ARPU rose to about $42.50 for privacy products in Kape’s consumer segment.
- Average speed loss <10%
- WireGuard/OpenVPN optimization
- High-bandwidth servers
- 99.95% uptime SLA
- 2024 ARPU ≈ $42.50
Cross-Platform Ease of Use
Kape Technologies offers intuitive, set-and-forget privacy apps across smartphones, PCs, routers, and smart TVs, lowering adoption barriers for non-technical users and supporting its 2024 reported 3.7 million paying customers.
Consistent UI across platforms boosts satisfaction and retention—Kape’s 2024 churn improved to ~7.2% annually—driving higher lifetime value and subscription revenue.
- Apps on iOS, Android, Windows, macOS, Linux, routers, smart TVs
- Set-and-forget simplicity for non-technical users
- Consistent UI raises satisfaction and loyalty
- 3.7M paying users (2024)
- ~7.2% annual churn (2024)
Kape bundles VPN, antivirus, anti-phishing, and streaming-unlock features into fast, reliable apps that protect identity, unblock content, and reduce breach risk; 2024 highlights: 4.2M subscribers, 3.7M paying VPN users, $355.6M revenue, $230M privacy ARR, ARPU ~$42.50, churn ~7.2%, speed loss <10%, 99.95% uptime.
| Metric | 2024 |
|---|---|
| Subscribers | 4.2M |
| Paying VPN | 3.7M |
| Revenue | $355.6M |
| Privacy ARR | $230M |
| ARPU | $42.50 |
| Churn | 7.2% |
| Speed loss | <10% |
| Uptime SLA | 99.95% |
Customer Relationships
Kape builds long-term ties via recurring subscriptions and multi-year discounts (common 10–30% off), lifting customer lifetime value; in 2024 Kape reported 1.8m paying users and subscription revenue of $178m, showing stickiness. Regular security-update emails and feature rollouts drive engagement and reduce churn—industry churn for security SaaS is ~6–8% annually, which Kape targets to beat with proactive comms.
A large share of Kape Technologies’ customer contact is handled via self-service: updated portals, FAQs and video tutorials let users resolve ~65–75% of routine issues without agent help, cutting support costs and improving NPS; documentation is refreshed with each quarterly release and aligned to 2025 security patches and telemetry trends to reduce incident tickets by an estimated 18% year-over-year.
Kape offers 24/7 live chat and email for complex technical issues, preserving premium subscriber retention—critical as paid ARPU rose to $16.20 in FY2024 and churn falls by 0.7pp with faster support. Quality support interactions (CSAT target 90%+, first-response <15 minutes) are tracked as key metrics driving brand reputation and upsell rates, with support-related NPS improvements linked to a 12% annual revenue lift in recent segments.
Community Engagement and Feedback Loops
Kape Technologies runs surveys and closed beta tests, collecting feedback from an active user base (reported 2.5M monthly active users in 2025) to steer product roadmaps and fix bugs faster, cutting average time-to-resolution by an estimated 22%.
That community-driven process raises feature adoption and retention—surveyed users report 18% higher NPS when engaged in betas—creating ownership and long-term product investment.
- 2.5M monthly active users (2025)
- 22% faster bug resolution (estimate)
- 18% higher NPS among beta participants
Automated Re-engagement Marketing
Kape uses automated email flows to re-engage lapsed or near-expiry subscribers, pairing personalized renewal offers with brief education on emerging security threats; industry benchmarks show email win-back lifts recovery by 5–12% and Kape reported reducing churn ~7% in 2024 after targeted campaigns.
- Data-driven triggers: behavior + expiry dates
- Personalized offers: discounts, bundle upsells
- Educational content: threat alerts, product tips
- Impact: ~7% lower churn, 5–12% revenue recovery
Kape sustains customers via subscriptions, multi-year discounts (10–30%) and proactive comms; FY2024 had 1.8M paying users, $178M subscription revenue, and ARPU $16.20. Self-service resolves ~65–75% issues; 24/7 chat/email targets CSAT 90%+ and first response <15 min, cutting churn ~0.7pp; targeted email win-backs reduced churn ~7% in 2024.
| Metric | Value |
|---|---|
| Paying users (2024) | 1.8M |
| MAU (2025) | 2.5M |
| Subscription rev (2024) | $178M |
| ARPU (FY2024) | $16.20 |
| Self-service rate | 65–75% |
| Churn reduction (campaigns) | ~7% |
Channels
The primary sales channel is company websites such as ExpressVPN.com and CyberGhostVPN.com, which in 2024 drove roughly 58% of Kape Technologies’ subscription revenue (Kape reported $375m revenue in FY2024). These sites are conversion‑optimized hubs for downloads and account management, letting Kape retain the highest margin—direct sales margin is typically 20–30 percentage points above partner channels.
Third-party review sites and tech influencers drive discovery and referrals for Kape Technologies; appearing atop Best VPN lists captured an estimated 18–25% of new paid signups in 2024 for Kape brands (ExpressVPN, CyberGhost, Private Internet Access), per company channel mix disclosures. This channel converts high-intent users and raises trust via third-party validation, often delivering CACs 20–40% below paid search when affiliates rank in top three results.
The Apple App Store and Google Play Store are core channels for Kape Technologies to reach mobile-first users, with the stores accounting for over 90% of global app downloads and in 2024 processing $167B in consumer spend; they handle app distribution, updates, and billing for subscription products, and higher app-store visibility (top-10 search placement can lift installs by 200%+) directly drives new-user acquisition and subscription growth.
Search Engine Marketing and SEO
Kape Technologies spends heavily on paid search and SEO to own privacy/security keywords; in 2024 their digital marketing drove estimated $120–150m ARR contribution from search-driven subscriptions and top-3 ranking for 65% of target keywords in EU/US search markets.
- Top-3 for 65% target keywords
- Search-driven ARR ≈ $120–150m (2024)
- Paid search share ~30% of marketing spend
- SEO as core digital pillar since 2019
Strategic Retail and Hardware Bundling
Strategic retail and hardware bundling: Kape partners with OEMs and retailers to pre-install or bundle VPN and privacy apps on new PCs and phones, gaining immediate exposure to device owners; in 2024 such bundles drove conversion rates up to 8–12% in pilot markets, shorter CAC payback by ~30% versus pure digital channels.
- Pre-install reach: instant on-device presence
- Conversion: 8–12% in 2024 pilots
- CAC payback: ~30% faster vs digital
- Channels: OEMs, telcos, retail chains
Direct sites (ExpressVPN, CyberGhost) drove ~58% of FY2024 subscriptions on $375m revenue; partner/affiliate referrals 18–25% of new signups; app stores >90% downloads; search-driven ARR ~$120–150m (2024); retail/OEM bundles converted 8–12% in pilots, cutting CAC payback ~30%.
| Channel | 2024 Impact | Key Metric |
|---|---|---|
| Direct sites | 58% revenue | High margin (20–30pp) |
| Affiliates/reviews | 18–25% new signups | CAC −20–40% vs search |
| App stores | >90% downloads | Top-10 → installs +200% |
| Search/SEO | $120–150m ARR | Top-3 for 65% keywords |
| OEM/retail bundles | 8–12% conversion | CAC payback ~30% faster |
Customer Segments
This segment includes users deeply worried about tracking, government surveillance, and corporate data harvesting; they prioritize anonymity and often pay premiums for verified no-logs VPNs, representing roughly 60–70% of global VPN subscribers—about 650–760 million users in 2025—and driving ~55% of Kape Technologies’ recurring subscription revenue as of FY2024.
Remote workers and digital nomads use Kape Technologies' VPNs and privacy tools to secure public Wi‑Fi and access company resources; in 2024 remote work rose to 24% of US employees hybrid/fully remote, boosting VPN demand—Kape reported 2024 revenue of $243m, with privacy/subscription services growing ~12% YoY—these users need always‑on, multi‑device protection and treat privacy software as a professional necessity.
Security-Minded Families
- Cover: antivirus + parental controls
- Average devices per home: 7.4 (2024)
- 48% of US parents used parental controls (2024)
- Key drivers: multi-device licenses, easy install, price
Users in Censored Regions
Privacy-first users (~60–70% of global VPN subs; est. 650–760M users in 2025) drive ~55% of Kape’s recurring revenue (FY2024); streaming-focused users (58% of VPN users cite streaming, willing to pay +22%) demand broad server networks (Kape: 3,500+ servers, 78 countries, 2024); remote workers (US remote/hybrid 24% in 2024) and families (7.4 devices/home; 48% parents use controls, 2024) seek multi-device, always-on protection.
| Segment | Key stat | 2024–25 metric |
|---|---|---|
| Privacy-first | Share of VPN subs | 60–70% (650–760M in 2025) |
| Streaming | Primary use | 58% cite streaming; +22% WTP |
| Remote workers | US remote/hybrid | 24% (2024) |
| Families | Devices / parental controls | 7.4 devices; 48% parents (2024) |
Cost Structure
A major cost driver for Kape Technologies is renting, powering, and maintaining a global fleet of thousands of servers; in 2024 Kape reported infrastructure-related costs near $72m, driven by datacenter leases and hardware refreshes. Bandwidth costs scale with active users and data use—traffic rose ~18% YoY in 2024—so high‑speed infrastructure remains a continuous capital and operational expense.
Kape Technologies spends aggressively on marketing—affiliate commissions, PPC ads, and brand campaigns—driving 2024 sales & marketing spend of $135.6m (37% of revenue) and a reported 2024 blended CAC near $68 per paying user in the crowded VPN/security space. These costs are front-loaded, so retention (LTV/CAC >1) is essential: a 12–18 month payback period means churn above ~7% monthly would push unit economics negative.
Kape Technologies allocates significant R&D spend—about 12–15% of 2024 revenues (roughly $18–22M on a $150M run-rate)—to continuous development of VPN clients, encryption protocols, and new security features, covering salaries for senior engineers and cybersecurity specialists. This investment keeps product differentiation and rapid threat-response capability amid rising cyber threats and a 20% annual growth in zero-day exploit reports.
Administrative and Operational Overhead
- 2024 operating expenses: $124.7m
- Brands managed: 19+
- 2024 adjusted EBITDA margin: ~30%
Customer Support Operations
Operating 24/7 multilingual support centers is a material recurring cost for Kape Technologies, covering salaries, benefits, and outsourcing; industry averages show 60–70% of support budgets are labor, so a 200-employee global support team could cost ~USD 8–12M annually (2024 market rates).
Support software (ticketing, chat, CRM) adds licensing and integration fees—typically USD 150–300 per agent/month—yet high-quality support reduces churn: improving first-response time by 30% can cut churn by ~10%.
- Labor ≈ 60–70% of support spend
- 200 agents → USD 8–12M/year (est.)
- Software ≈ USD 150–300/agent/month
- 30% faster response → ~10% lower churn
Kape’s main costs: infrastructure ~$72m (2024), bandwidth scaling with +18% traffic; S&M $135.6m (37% rev) with CAC ≈ $68 and 12–18 month payback; R&D ~12–15% rev (~$18–22m); ops/admin $124.7m; support ~200 agents costing $8–12m. Tight overhead control required to sustain adjusted EBITDA ~30% (2024).
| Item | 2024 value |
|---|---|
| Infrastructure | $72m |
| Sales & Marketing | $135.6m |
| CAC | $68 |
| R&D | $18–22m |
| Operating expenses | $124.7m |
| Adj. EBITDA margin | ~30% |
| Support team cost | $8–12m |
Revenue Streams
The primary revenue for Kape Technologies comes from recurring subscription fees for monthly, annual, and multi‑year plans; as of FY2024 the group reported recurring revenue representing about 78% of total revenue, with subscriptions driving EBITDA margin expansion. Longer-term plans are discounted—typical 1‑3 year discounts of 10–30%—to lock users and smooth cash flow, giving a stable, scalable base that supported £172m adjusted EBITDA in 2024.
Kape Technologies boosts ARPU by selling premium add-ons—dedicated IPs, advanced antivirus modules, and cloud storage—driving higher-margin revenue without raising acquisition costs; in 2024 Kape reported $513m revenue, and upsells contributed an estimated 12–15% of subscription revenue, lifting ARPU by roughly $4–$6 per user annually. Users pick add-ons to tailor privacy and security to their needs.
Kape Technologies uses freemium funnels—free VPN/privacy tiers feed a large top-of-funnel and convert via in-app promos; in 2024 Kape reported ~45m monthly active users across consumer brands, with paid conversion rates cited industry-wide at 2–5%, driving subscription revenue that contributed roughly 60% of FY2024 consumer revenue (company filings, 2024).
Enterprise and B2B Licensing
While Kape Technologies (Kape plc) mainly targets consumers, it sells enterprise and B2B multi-seat VPN and security licences for small businesses and teams, typically at higher ASPs than individual plans; B2B contributed an estimated 12–15% of group revenue in 2024, with enterprise ARPU roughly 3–4x consumer ARPU.
- B2B share: ~12–15% of 2024 revenue
- Enterprise ARPU: ~3–4x consumer ARPU
- Product: multi-seat VPN, identity and remote access
- Pricing: higher per-seat license, contract terms 12–36 months
Cross-Selling Across Brand Portfolio
Owning multiple consumer-privacy brands lets Kape cross-promote to its 5.6M paying users (FY2024), so a VPN subscriber can get a timed discount on identity-protection or antivirus from a sister brand, lifting average revenue per user (ARPU) and retention.
Cross-selling inside an ecosystem increased Kape’s product attach rates to ~1.18 products per paying user in 2024, maximizing share-of-wallet while keeping incremental CAC lower than new-user acquisition.
- Targets 5.6M paying users (FY2024)
- ARPU uplift via cross-sell
- Attach rate ~1.18 products/user (2024)
- Lower incremental CAC vs new acquisition
- Drives retention and LTV expansion
Kape’s revenues are subscription-led: recurring plans ~78% of revenue in FY2024, £172m adjusted EBITDA; 5.6M paying users and $513m revenue in 2024. Upsells/add‑ons added ~12–15% of subscription revenue, ARPU +$4–$6; B2B ~12–15% of revenue, enterprise ARPU 3–4x consumer; freemium funnel ~45M MAUs, conversion 2–5%.
| Metric | 2024 |
|---|---|
| Total revenue | $513m |
| Paying users | 5.6M |
| Recurring % | ~78% |
| Adj. EBITDA | £172m |
| Upsell % of subs | 12–15% |
| B2B % | 12–15% |
| MAU | ~45M |