Evernote

Evernote is the company located in the city of Sunnyvale (California, the USA) which main business directions development and promotion on the market of the service of the same name of preserving and synchronization of notes and also licensing of a number of the patented technologies of the company, including recognition of the printing and handwritten text in images is among. The company has representations in Russia and Great Britain.

Management

Board of Directors

In total 8 people are a part of council:

• Levchin Max is the founder of PayPal (independent)
• Dyson Esther is the American businesswoman (independent)
• Phil Libin is the CEO, the CEO
• Stepan Pachikov is the chief architect of a product (Stepan Pachikov, Chief Product Architect)

+ 2 representatives of the previous private investors.

Performance Indicators

Basic service Evernote — free, the company earns from additional services.

The premium model was started with Evernote entry into the market at once. The company refused advertizing sale model. The main functionality is free. In the beginning as paid premium functions the bigger volume of the monthly place for notes for the user and some other was provided. New premium functions, such as opportunity to instantly turn notes into the presentation are gradually added, and a part of former premium functions passed into discharge of free. Among users who were registered a month ago begin to pay 0.5%, and among those who with us three-four years – a share of paid users already, i.e. in process of increase in experience of users, they begin to pay about 25% to a thicket.

In structure of revenue on Evernote Business 9%, and are the share of Evernote Market – 30% of sales. The rest – sales of a premium subscription^[1].

Evernote Market

Evernote Market is an online store of goods of a line Evernote Edition. Treat hits of sales the special scanner which allows to scan documents directly in Evernote, the ultrathin stylus for iPad optimized under our applications, an ergonomic AbrAsus bag. It became also an alternative method of monetization because 50% of buyers — free users, and 11% not users of Evernote service at all.

2014: Evernote overcame a mark of 100 million users

Evernote is used in the work by people from 190 countries of the world. Territorially the audience of Evernote is distributed as follows:

• The Pacific Rim — 35 million people;
• Europe, the Middle East and Africa — 31 million;
• The USA and Canada — 27 million;
• Latin America — 8 million.

The first hundred million users in the majority opened for themselves products of the company independently. Evernote expenses on promotion were minimum and made less than 1 cent of the USA on the user. About 88 million users installed applications of Evernote independently. 13 million more people got acquainted with the products of the company preset on partner devices.

2013: The two-million user of Evernote in Russia

On December 19, 2013, Moscow. The Evernote company announced that the number of users of service in Russia exceeded two million people. Among features of the Russian audience it is possible to note big in comparison from average world a share of users of applications for Android and Windows Phone. In the first case the share of the Russian users of Android is higher than an average value for 23%, in the second — 53%.

2011

Evernote had 11 million users in July, 2011. It is more than double growth in comparison with October, 2010 when users there were only 4.5 million. The partner of Morgenthaler Gary Littl in an author's column on the website Forbes wrote that at rapid growth of number of users among old clients of Evernote about 23% of users select the paid version without advertizing and with enhanced capabilities. In June, 2011 the company had 424,000 paid users who bring to the company about $24 million a year.

2009

The number of the registered users of service exceeds 1.5 million, a share of active users - over 30%, Dmitry Stavisky, the vice president for the international development of Evernote reported CNews. The share of subscribers a premium of service exceeds 4% of number of active users.

Projects, products

Service for preserving and synchronization of notes of Evernote allows to save necessary information in the form of text, audio-and video notes, using the computer or the mobile phone. Access to the online service for storage of notes of Evernote positioning itself as cross-platform "extender" of human memory can be received via computers under management Windows and now Mac and also using communicators iPhone, BlackBerry and devices based on Windows Mobile and WebOS. Work on versions for platforms is now conducted Android and Symbian.

It is possible to refer the following functions to basic functions of Evernote:

• automatic synchronization and access to notes from the Web, the program on the computer and from the mobile phone (WinMobile and iPhone);
• sorting of notes according to notepads and tags and also the geotags set using GPS;
• recognition and the analysis of the printing and handwritten text in images;
• multiple-factor search of notes in different signs;
• expansion for browsers Internet Explorer Firefox Chrome , etc. for preserving in notes of a highlighted text, web pages entirely and also creations of "passing" records;
• possibility of opening of separate notepads with notes for other users.

History

The founder of the company Stepan Pachikov in the 1980th developed software in the Soviet scientific research institutes, and then created Paragraph company which in the early nineties received the large order from Apple on development of the system of handwriting text recognition. In 1997 Pachikov sold Paragraph of Silicon Graphics company for $81 million. And in 2006 thought up the program for record and storage of notes in the form of the text, a photo, documents and audio recordings on computers, mobile phones and tablets. This idea formed the basis of the Evernote service which is nowadays numbering more than 20 million users.

2018: Mass layoffs of the management of Evernote

Service for maintaining notes of Evernote lost several top managers at once, reports the TechCrunch edition at the beginning of September, 2018. In the company the technical director Anirban Kundu, the chief financial officer Vincent Toolan, the director of a product Erik Wrobel and the head of HR department Michelle Wagner do not work any more, apart from normal routine among developers and designers^[2].

Leaving of management matched the next round of the investment attraction, TechCrunch writes. Presumably, during this round the company will be estimated below, than there was its last assessment in $1.2 billion given a few years ago. Evernote did not attract serious investments since 2013 — only $6 million interim financing. For all the time of the existence service collected about $300 million, including from such investors as Sequoia, NEA, Harbor Capital, T. Rowe Price and others.

2016

Evernote will read notes

Staff of Evernote will have an opportunity to read notes of users to control the process of machine learning started by service. Viewing records will be made not for the purpose of selection of relevant advertizing, the company claims. Corresponding changes in the confidentiality agreement will become effective on January 23, 2017^[3].

To be convinced that process of machine learning takes place normally, it is enough to staff of service to perform selection check of records. They will see the chosen fragments and will not know to which of users they belong. Besides, if a system notices that some personal data got to this fragment, it will mask them from the worker.

Evernote promises that the list of employees who have a right to viewing will be minimum, i.e. not all staff of the company will be able to read records of users. Besides, these workers will sign the nondisclosure agreement and there will take place special trainings on maintaining confidentiality.

Machine learning should make work of service quicker and more simply for the user. It will help to reveal and show content which is most suitable for it and also will give the chance to automate some processes – for example, drawing up the task list or combination of road schedules.

To avoid check of the notes by employees, the user of Evernote should just refuse participation in the program of machine learning. It is possible to make it in settings of the account, having removed a tick from the point "Permit Evernote to Use My Data for Improvement of Quality of Service". This point is in an online control panel service, in the section "The account - Personal settings - the Improved service - to Permit Evernote to use my data for improvement of quality of service". It is possible to pass into an online panel from the application on the way "The account - Additional settings".

The company browses notes if there is a suspicion about violation of conditions of provision of services from the specific user. For example, if the service receives the message that records contain dangerous content. Or if there is a suspicion that the account is used in criminal objectives. Good cause also is court's decision.

Restriction of number of devices and rates

The Evernote company limited in the summer of 2016 the number of devices on which users of service, to two pieces will be able to synchronize the notes. It, for example, can be the personal computer and the smartphone, the smartphone and the tablet or two computers. Only the Evernote applications are considered — if the user comes into the account with the PC via the web interface, this device will not be considered. As also unofficial clients will not be considered.

Change will affect both the new, and existing users. And a certain period that they could be prepared will be offered the existing users.

If the user wants to exclude the device from the list of synchronization, to it will enough leave the account in the application on this device.

Owners of the paid accounts Plus and Premium will not be limited in number of devices. At the same time Evernote increases the cost of these tariff plans. Plus which includes a quota in 1 GB for loading of content on the server monthly costs $4 a month instead of $3 now, and Premium including a quota of 10 GB in a month — $8 instead of $6. Both tariff plans are intended for private users, Evernote Business of change will not mention.

2015

Evernote closes office in Russia

On September 29, 2015 it became known of that, Evernote reduces the staff approximately for 13% and closes three international offices, including Russian. It was announced by the CEO of the company Chris O'Neill who held this position in July, 2015, having replaced on it the founder of service of online notes Phil Libin.

According to O'Neill, the new wave of dismissals concerned 47 employees of Evernote. It is twice more than number of the employees who left at the beginning of 2015 when the staff of the company totaled about 400 people. Reduction of a command should promote growth and expansion of business Evernote, the head of service noted.

Evernote reduces the staff approximately for 13% and closes three international offices, including Russian

According to him, within the carried-out restructuring the company intends to be focused on tools for notes, synchronization of data and search. The attention to these technologies will develop into "considerable fundamental improvements of a product" which will be provided to the coming months, Chris O'Neill wrote on September 29, 2015 in the blog.^[4]

Besides, Evernote intends to get rid of unpopular services, including of the project of storage of the recipe of dishes Evernote Food which will stop work on October 1, 2015.

In addition to liquidation of working positions and reduction of business, Evernote decided to close three representations — in Russia, Singapore and on Taiwan. The last two were engaged in sales and marketing, and the office in Moscow was focused on development of service. All Asian business of Evernote will be concentrated in Seoul (South Korea) now, at the same time the Chinese office will continue work, transfers the Business Insider edition.

As of September, 2015 the audience of Evernote exceeds 150 million users. The number of paid subscribers of service in a year grew by 40%. The company nourishes idea for an entry into the exchange for many years, and large-scale business optimization and the replacement of the leadership preceding it can probably be considered as one of the last stages of preparation for the IPO.^[5]

Evernote stopped development of several applications

On December 21, 2015 it became known of closing of the products Clearly and Evernote with the company for the smartwatch Pebble, the termination of development and support of Skitch for Windows, iOS and Android Evernote^[6].

Support of Skitch on the Mac platform will be retained. Skitch is applications for hand-written notes and drawing, including on the imported images. The developer of the application was purchased by Evernote in 2011.

The plug-in Clearly allows to select the main content from web pages for more convenient reading (similar function is in many browsers as the built-in opportunity). Many functions removed from Skitch to the Evernote application, and from Clearly — to a plug-in for the Web Clipper browsers.

Evernote for Pebble is relative, the developer recommended to users an analog of third-party producer Powernoter. The failure purpose from further development of the listed products - concentration on main products which Evernote and Web Clipper treat, was declared in the company.

At the end of September, 2015 Evernote announced reduction of 13% of the state and closing of representations on Taiwan, in Singapore and Moscow. Within restructuring all activity of the company in Asia (excepting office in China) will be moved to Seoul (South Korea).

the author Chris O'Neill, the CEO of Evernote In the coming months you can expect from us the following two things. First, we will try to improve functionality of our most popular products considerably. Secondly, we will wind up product development which are for us minor.

2014: Plans of Evernote - a universal working space

On October 9, 2014 it became known of plans of the management of Evernote - to turn service into "a universal working space".

According to data of the company, applications of Evernote are used by about 100 million users, a quarter from them - in the USA and Canada. One of the claims stated by users to developers of service - congestion. Nevertheless, founders of service have plans to significantly expand its opportunities. Sense - to turn Evernote from service for preserving of notes into a working environment.

Phil Libin, the CEO of Evernote, among new features called Context and Work Chat:

• Context has functionality of the search engine, it, in process of input by the user of a text note, analyzes its contents and displays the relevant materials found in network. Now search of the Context tool is limited to databases of LinkedIn and some news and business websites while only ^[7]. Among news resources which Context, the Wall Street Journal newspaper addresses. Bonus subscribers and business users of Evernote service will get access to the newspaper website, and subscribers of Wall Street Journal, on the contrary, will get access to Evernote Premium services. In addition to LinkedIn and WSJ Context addresses with search TechCrunch, CrunchBase and some other resources.
• Work Chat - it is intended for work on notes in group and focused, generally on corporate users. The chat allows to work at the same time on one note to different users, from different devices, communicating with each other and not using third-party means of communication (messengers or e-mail).
• Presentation is one more new feature. Its appointment - to simplify process of preparation of the presentations. With its help the note created by the user can be made out in a slide for the presentation with the set formatting parameters. From several notes it is possible to create the ready presentation. If necessary Presentation gives the chance to format ready slides.

Phil Libin considers that Evernote already evolved from the simple tool for creation of notes to a full-fledged working environment.

The mode of creation of the presentations in new Evernote

The new functionality will become available to users of new versions of clients of Evernote to iOS, Android, Mac and the web version, as expected, in November, 2014.

Evernote attracted $20 million from the Japanese media giant Nikkei

The Japanese media conglomerate Nikkei, the publisher of the influential financial newspaper of the same name, agreed to invest $20 million in the American company Evernote. It is said in the official statement. During what period of Evernote will receive these funds and for what they will go,^[8] is not specified^[9].

Along with the announcement of new investments Evernote announced that Nikkei became the first foreign partner who agreed to provide data sources for the Evernote Context function. It is intended for display of relevant articles near notes with which the user works. Context is function for corporate clients of Evernote. In addition to articles, it displays relevant notes and the staff of the company, suitable for performance of work.

The agency of business and financial information Dow Jones & Company — the publisher of the authoritative American newspaper Wall Street Journal and the owner of the platform for exchange of business information of Factiva became one more partner of Evernote in the Context function. The agency agreed with Evernote that in exchange for access to materials subscribers of WSJ and Factiva will have an opportunity with certain restrictions to use the accounts Evernote Premium and Business.

2012

Troika Dialog performed at the beginning of 2012 the first exit from a venture investment portfolio, having sold Sequoia Capital the share in Evernote company. Transaction amount exceeded $45 million. At sale of a share in Evernote to the American fund Sequoia Capital investment of Three more than by 10 times exceeded initial.

In April, 2012 it became known that Evernote will receive about $100 million from consortium of investors led by Meritech Capital Partners fund, reported the Business Insider edition with reference to anonymous sources. According to the edition Techcrunch, the company attracts $50-100 million. And all business of Evernote is estimated at $1 billion, approve sources of both editions. According to Techcrunch, the deal can be closed within two weeks. It was confirmed to Vedomosti by a source, close to its participants. According to him, the company discusses a new round of financing with investors, but its conditions still are finally not defined. According to sources of TechCrunch, means Evernote can be necessary for entry into the new markets, in particular to China.

In total from the moment of creation of Evernote attracted $95.5 million^[10].

The service of notes Evernote completed a new round of investments which volume was $85 million. In the official blog its CEO Phil Libin reported about it. Headed a round AGC Equity Partners and m8 Capital venture funds. Valiant Capital Partners and also the existing investors of Evernote and clients of T. Rowe Price investment company were among investors.

The lion share of the invested $85 million (75% or $63.75 million) was directed to redemption of stocks of the existing investors and shareholders of Evernote. As Libin explained, it is made to restrain their ardor - as the company is not going to go public yet.

"Having given to our investors sales opportunity of the stocks of the company owned by them, we will get rid of their pressure in respect of entry into the exchange and also we will become more attractive to those who are only going to invest in us", - Libin said.

Other means ($21.25 million) went for Evernote development. In particular, expansion of the customer base and promotion of paid services. "Our purpose - creation of the serious company. Additional resources which we received, guarantee that we will be able to continue development of the best products in the market, regardless of macroeconomic conditions", - Libin added.

2011

• The service of storage, creation and synchronization of notes of Evernote noted registration of the ten-million user in June, 2011. It is remarkable that most of users work with Evernote on several platforms: 75% using service synchronize data on two and more devices. Evernote developed rather promptly from the very beginning: after 992 days of existence the audience of service with "elephant" reached 5 million. 208 more days were required for achievement of 10 million mark. It is necessary to add that 400 thousand users from 10 million audience are paid subscribers. Success of the company allows it to attract investments on development: so, the startup attracted in the third round financing of 20 million dollars in size in October. By recognition of the chief executive of the company Phil Libin, these means also helped to achieve an effective objective in 10 million users.

• In July, 2011 it became known that investment funds Sequoia Capital and Morgenthaler Ventures invested $50 million in the American developer of the popular^[11].

It is said about investments of Sequoia Capital and Morgenthaler Ventures into Evernote in the official statement of funds. Sequoia acted as the main investor, her partner Roelof Botha received a chair in Board of Directors of Evernote. Investments will go for aggressive expansion of business and absorption, the former partner of Morgenthaler Ventures fund, and nowadays one of managers of Evernote — Ken Gulliken will be engaged in development of strategy.

The idea of Evernote initially was correct and good, the founder of ABBYY David Yang says, and recently service began to support social networks still: now through Evernote it is possible to write a note to Facebook or a post on Twitter. Emergence of social functions — the reason of rapid growth, Yang is sure. Only for the last month Evernote purchased one million new users, such organic growth proves that service is popular, words of her CEO Phil Libin are cited in the press release of the company.

The director of venture funds of Troika Dialog and the board member of Evernote Artem Yukhin says that together with a subscriber base also the cost of the company which since the last transaction grew "several times" grows.

Data storage in a cloud — a trend from which you will not get to anywhere, the CEO of Glavstart venture fund Arkady Moreynis recognizes. Cloud services allow to store data not on the user's computer, and on remote servers and to use them on the Internet. Success of Evernote demonstrates that are ready to store notes in the Internet not only advanced users — admirers of technologies, but also ordinary people, Moreynis says.

• In August, 2011 the Evernote Company announced acquisition of Skitch, the application for adding of marks and summaries to screenshots and other images. This first acquisition of Evernote. Founders of Skitch Chris Pearson and Keith Lang will join Evernote and will head development and development of the product. Evernote also represents Skitch for Android, the first mobile application of Skitch. Convenient and simple in application of Skitch for Mac and Android allow users to save, enter marks and to share images. After execution of notes of the image can be easily transferred to Evernote and also other applications and services. The complete version of Skitch for Mac which cost 19.99 dollars earlier is available free of charge to loading in Mac App Store now. Skitch is also free and available to Android in Android Market. New users will be able to become authorized in Skitch with data of the account in Evernote. Present users of Skitch can continue to work through the existing accounts. Evernote and Skitch can be used together. Users of Mac can enter marks over images and then drag them in Evernote. For Android if both applications are installed, clicking Evernote icon sends to versions images without an exit from Skitch there at once. In the near future Evernote and Skitch will be closely integrated. 'In process of development of Evernote within the last several years we noted how the quantity of data types which our users aim to save and remember increases — the CEO of Evernote Phil Libin says. — Sketches and comments over images and their export were among the most required opportunities'.

2009

Evernote announced receiving investments from the Japanese Docomo Capital in the amount of $2 million. Before Troika Dialog which attracted Docomo already enclosed in the project of $4.5 million.

"Evernote received also before investments, but only from private Russian and Canadian investors, - Artem Yukhin, the director of venture funds of Troika Dialog told CNews. – This round in which as the leading investor we participate is the first" ^[11].

Yukhin refused to call the packet size of actions in exchange for which investments were involved, but characterized it as considerable, having added that Three received 2 places in Board of Directors. According to Yukhin, the question of further investments into the company is still open. As he considers, for implementation of the business plan of Evernote of additional investments existing now it is not required, but the second round can be necessary for acceleration of growth and development of the new directions.

The funds received from both investors will be allocated for promotion of Internet service in new regions, speak in Evernote. It is going to be made due to support of bigger number of languages and development of local software versions. Evernote will also continue development of the client software for new platforms and mobile devices.

Stavisky calls the choice as the partner of Docomo obvious. "In fact it is the strategic, but not financial investor who found the Evernote project rather attractive to invest in the company at this stage of development, - he says. - We do not support Japanese yet, but on number of active users Japan on the second place after the USA".

• As a result in 2009 the company attracted $16.5 million from one of venture funds under control of Troika Dialog, DoCoMo Capital (venture division of the largest Japanese mobile operator NTT DoCoMo) and Morgenthaler Ventures fund.

2010

The Evernote company attracted $20 million within the third round of investments organized by Sequoia Capital venture fund. Former shareholders of Evernote - Morgenthaler Ventures, Docomo Capital and venture funds of Troika Dialog - also took part in a round. The overwhelming share of means was attracted with Sequoia Capital. Roelof Botha, the partner of Sequoia Capital, will join the board Evernote as the observer. The company intends to use the means received from investors for acceleration of development of service and expansion to new market segments. The speech, according to Dmitry Stavisky, the vice president for the international development of Evernote, goes about introduction of function of sharing of notes, development of gallery of third-party applications of service, geographical expansion.

Former investments into the project, we will remind, were considerably smaller volume. The first tranche in the winter of 2008-2009 was attracted from Troika Dialog in the amount of $4.5 million, later half a year the Japanese fund Docomo Capital joined the same round, having invested $2 million. In November, 2009 in the second round of investments of Evernote attracted $10 million from Morgenthaler Ventures fund.

2008

In 2008 there was an Evernote program and earned an online service of storage of notes, however the company after start nearly went bankrupt: it was saved by $500,000 received from the fan of service from Sweden.

2006

In 2006 Pachikov founded Evernote company, and for the first two years of work it attracted $9 million from "angel investors".

Awards

Evernote became the winner in such tenders as 2nd Annual Open Web Award (Tender of significant innovations in the field of web technologies, the nomination: Mobile Application) and Crunches 2009 (award of the online edition of TechCrunch, nomination: Best Mobile Startup).

Competitors

Google Notebook and Microsoft application of OneNote

Interesting Facts

On a logo of the company the elephant, according to a belief is represented that elephants never forget anybody.

Contact us

Offices Evernote are in California, Moscow and Kazan.

Links

• "Maintaining and organization of notes by means of EverNote", Computerra
• «Evernote Brings Proper File Syncing to iPhone», Wired (англ.)
• «Evernote Passes 500,000 Registered Users», TechCrunch (англ.)
• «Organize Your Jottings», The Wall Street Journal (англ.)

Notes