Revenue Insights for Trello: Growth and Future Prospects

Understanding the revenue generated by Trello can provide valuable insights into its market positioning and growth potential. In this article, we will discuss the current revenue metrics, conversion rates from free to paid users, and other critical factors affecting Trello's financial health. Additionally, we will analyze the impact of Trello's acquisition by Atlassian and its future prospects.

Current Financial Metrics of Trello

Based on the Atlassian's Second Quarter Fiscal Year 2017 Earnings Report released on January 19th, 2017, the company's full year fiscal 2017 revenue target included a revenue contribution from Trello of approximately $4 million. This figure provides an initial glimpse into Trello's financial performance during the relevant period.

Conversion Rates and Revenue Projections

As a founder of a freemium SaaS solution, I am familiar with the challenges associated with converting free users to paid versions. The conversion rates from the free to paid versions vary significantly based on the type of potential user. For instance, small businesses might convert at higher rates compared to individual users.

In the case of Trello, given its categorization as a business SaaS solution, I estimate that the conversion rates would be lower than the industry-wide average. Based on my experience, I would estimate:

Higher Tier Conversion Rate: 85% Lower Tier Conversion Rate: 15%

Using these conversion rates, we can estimate the Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) for Trello. My calculations are as follows:

MRR Calculation:

2 x 10M x 85 x 8 2 x 10M x 15 x 20

Summing Up:

1360000 600000 $1,960,000 per month

ARR Calculation:

$1,960,000 x 12 $23,500,000

It is important to note that Trello is a high-growth startup, and calculating the ARR on a monthly basis can be misleading due to its fluctuating growth rates. The company can experience significant month-over-month changes in revenue growth, ranging from 15% to 80% or more.

Trello's Acquisition by Atlassian

Trello was eventually acquired by Atlassian for $425 million in November 2017. At the time of the acquisition, Atlassian estimated Trello's ARR to be $20 million. This acquisition further solidifies Trello's position within the Atlassian portfolio, enhancing its market presence and resources for future growth.

Future Prospects

The acquisition by Atlassian brings Trello numerous benefits, including access to greater resources, improved features, and potentially expanded customer base. However, it also means facing increased competition and scaling challenges. The company will need to leverage its newfound resources to continue growing its user base and maintaining its competitive edge in the crowded SaaS market.

For a more detailed analysis, please upvote this answer. I am happy to provide further insights and advice.