WATERLOO, Ontario and SAN FRANCISCO, April 6, 2016 /PRNewswire/ -- TextNow, the company making mobile phone service more affordable through its unique cloud based technology, today announced $20M in revenue, a 75 percent year-over-year growth in 2015 for its wireless connectivity solutions that redefine the existing traditional carrier model. The company is also expanding its presence to the U.S. with key new hires and opening its first U.S. office located in San Francisco's SoMa neighborhood.
As part of their trip promoting the Toronto-Waterloo Tech Corridor to Silicon Valley, Mayor Dave Jaworsky of Waterloo and Mayor Doug Craig of Cambridge visited TextNow's new office to meet with CEO Derek Ting as well to help recognize the company's rapid expansion.
TextNow is hitting major milestones across the board, including:
- 2M new users joining the service each month
- 500M messages and 81M calls being sent and made each month
- 360 percent growth of TextNow Wireless subscribers from end of 2014 to end of 2015
- 1B total calls since 2014 (95 percent of which are out of network)
"The growth we have experienced this year has been extraordinary, particularly because we are growing and expanding differently than most start-ups. This means we aren't relying on major funding, we are not operating in the red nor are we launching some 'never been seen before' idea. We have been successful by proving we could take on the gigantic telecom industry, where the barriers of entry are intense, all while maintaining profitability. Not many startups can say that," said Derek Ting, CEO and co-founder of TextNow. "Even more surprising is that this growth has been fueled primarily by organic demand, we have not even pulled the paid acquisition levers yet. Our organic baselines are extremely healthy so we are really looking forward to putting our foot on the gas and investing aggressively in performance marketing to scale the business."
TextNow is also announcing the appointment of Chas Castell as vice president of revenue operations and Mark Braatz as general manager and vice president of growth. Castell joins TextNow from Scopely where he was head of mobile advertising, growing direct sales exponentially and more than doubling ad revenue on their flagship app each year. Before Scopely, he helped build and manage the first ever mobile ad network at Warner Bros, running on "TMZ," "Ellen" and "Extra." Castell will focus on building a strong infrastructure to drive revenue growth through TextNow's ad and IAP business.
As general manager and vice president of growth, Braatz will head the first U.S. TextNow office in San Francisco. Braatz previously served as vice president of user acquisition at video game company KIXEYE where he directed over $65M in marketing investments and helped build a gaming portfolio generating nine digit annual revenues. Braatz will be managing all aspects of growth for TextNow across its mobile and e-commerce businesses.
TextNow currently has 82 employees and is looking to ramp up the San Francisco office with several more key hires. The company was recently selected as one of Canada's Top Small & Medium Employers for 2016.
"Our numbers strongly highlight the demand for the TextNow service and key executive hires such as Mark and Chas will aid in propelling the company to continue its path forward offering a stellar alternative to costly existing mobile phone services," added Ting.
Founded in 2009, TextNow has established a multi-million dollar profitable business with minimal initial funding. The company raised a $1.5M seed round in 2011 led by Freestyle Capital with participation by the Menlo Talent Fund, Menlo Ventures' Seed Program, as well as prominent investors Troy Carter and Scooter Braun. With TextNow, consumers can expect more from their mobile phone service. TextNow's cloud-based mobile service allows users to use their phone numbers across multiple platforms and devices. The company uses a hybrid model of WiFi and traditional phone service to offer premium quality mobile service at affordable prices.
TextNow is making mobile phone service ultra-affordable through its unique cloud based technology. Through TextNow Wireless and the free TextNow app, the company provides millions of users a better and more affordable alternative to traditional wireless plans and services. For more information, please visit www.textnow.com.
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