[NUMBERS] The boom in meditation apps
Calm, Petit Bambou, Headspace … while the subject of mental health takes more and more place at the heart of society, it seems that the digital sector has succeeded in successfully seizing on this issue to offer solutions which correspond to the uses of the population, with the leading applications of guided meditation. Their business model? A freemium model that makes it easy to attract users with the challenge of successfully moving them to the paid version. A bet that some applications have been successful for several years.
Thus, globally, the 10 most profitable meditation applications saw user spending on their app increase by 52% in 2019 compared to the previous year to reach 195 million dollars, according to data from Sensor Tower. .
A good increase compared to the 8 million generated in 2015. Over this five-year period, the sector has thus experienced a compound annual growth rate of 121%.
Evolution of spending in the 10 most profitable meditation apps
The success of Calm & Headspace
Sensor Tower figures also reveal the success of the Calm and Headspace applications, which respectively occupy the first and second place in the ranking and are the only companies to have always been in the top 10 between 2015 and 2019.
2019 ranking by revenue and downloads
Based in San Francisco, Calm was founded in 2012 by Alex Tew and Michael Acton Smith. Last February, the company raised $ 88 million in Series B for a billion dollar valuation. In total, it has raised $ 143 million since its inception. TPG Growth, Insight Venture Partners and Sound Ventures, the fund of actor Ashton Kutcher, are among the investors. At the time of the lift, Calm claimed 1 million paying users.
Its challenger, Headspace, also American, was born in 2010 and was founded by Andy Puddicombe and Richard Pierson. Its last round of funding of $ 36.7 million (Series B) dates from 2017. In total, the startup has raised just over $ 75 million. Its investors are Spectrum Equity, Jeff Weiner, CEO of LinkedIn, or actor Jared Leto. Meditation apps are in the age of time.
According to Sensor Tower data, Calm saw its revenue increase 46% year-on-year compared to Headspace’s 33%. Their earnings from users are estimated at $ 92 million and $ 56 million respectively for 2019.
Are meditation applications at risk of going out of fashion or is this a new use that will continue to exist? For now, the numbers favor the second option.
In 2019, these 10 top-grossing apps were downloaded 52 million times for the first time, an increase of almost 16% from the previous year. Calm and Headspace, which are 7 and 9 years old respectively, registered 24 million and 13 million new users last year.