Give away an unlimited free version, paid for with an ad or two

Tanuj ChatterjeeOur free-to-paid conversion is quite low, and I'm okay with it because we have focused on the top of the funnel a lot. There are a lot of companies, smaller competitors in the freemium world who would try to get more aggressive in monetization. And I think that's not our philosophy. We want to give you very, very, very, very good quality, free product.

Tanuj ChatterjeeAnd the reason it's low, not because the product sucks, it's because our free version is that good. So you don't want to throttle or take things away from the free version. There's a reason we have the word unlimited in our name, where if you want to come and you can't pay, that's fine. You probably just will have to watch an ad or two, and then you can use it unlimited. We have dozens and dozens of countries and cities that you can connect to. It's just fine.

Tanuj ChatterjeeI would rather give people more value before asking them for more money. So, it's a denominated game. So, part of the reason you also alluded to before, that most of the users are organic, partly because it's a numbers game for us. Our LTV, because it's freemium, because of a big majority of the users are freemium, our LTV is not that high. We can't compete with Spotify's of the world where their LTV and retention is amazingly high.

Tanuj ChatterjeeBut we are adding a lot more now. Talking about adding more value, we are adding Windows. So not only you can protect your mobile phone, but you can protect all of your devices, Windows, Mac, mobile phones across the family. We talked about adding a second phone number app so we can throw it in the bundle. I think that's where we are going. But the main thing is our top of the funnel is our superpower. Don't mess with it, give people a fantastic free VPN experience.

David BarnardSo do you manage the ad revenue to break even on the free users or do you even lose a little money on the free users? And how do you make money on ads? Are they full screen interstitials? Do those pay reasonably well?