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Business Operations Business Models

How Does Bitwarden Make Money (Business and Revenue Model)

The Bitwarden business model

Bitwarden logo
Here’s what you should know:
  • What is Bitwarden, and how does Bitwarden work?
  • How does Bitwarden make money?
  • Subscription Revenue (Bitwarden Premium)
  • Bitwarden funding, net worth, and valuation
  • Bitwarden profit and revenue
  • What is the Bitwarden business and revenue model?
  • Bitwarden subsidiaries, acquisitions, and exits

How does Bitwarden make money and how is it free to use? Well, here is a complete, in depth, breakdown of their main revenue stream and services they offer, as well as the Bitwarden business and revenue model, how much Bitwarden makes per year, and how Bitwarden works.

What is Bitwarden, and how does Bitwarden work?

Bitwarden is a freemium open source password manager that allows users to store sensitive information like website login credentials in their encrypted vault.

Founded in 2015 by Kyle Spearrin, Bitwarden now has millions of users from around the world using their open source password manager.

So, how does Bitwarden work? To get started with Bitwarden, you can simply either download their mobile app from the Apple App Store or Google Play store; or visit their website and create an account.

Once you’ve signed up, you can now get started using the Bitwarden web vault to add all of the sites you visit and make those passwords stronger. Additionally, you can install Bitwarden onto other devices if you choose to do so – and more.

Some of Bitwarden’s competitors include 1Password, LastPass, Dashlane, and other password managers.

Bitwarden App in Apple App Store | Bitwarden Business Model | How Does Bitwarden Make Money | How Does Bitwarden Work
Source: Apple App Store | Bitwarden

How does Bitwarden make money?

According to Bitwarden, Bitwarden has millions of users from around the world using its open source password manager. So how does Bitwarden make money off of all these users?

Below is a breakdown of how much money Bitwarden makes and its revenue model. Including their main revenue stream and how much they charge for their services.

Here is how Bitwarden makes money in 2022

Bitwarden has a revenue model that makes money in just one (1) way; through subscription revenue (Bitwarden Premium).

#1. Subscription Revenue (Bitwarden Premium)

At this time, Bitwarden makes all of its money from its subscription revenue.

Although Bitwarden has a freemium version, Bitwarden also offers four (4) subscription plans to choose from for users who want more security – they are; Premium, Families, Teams, and Enterprise.

All of which offer additional perks and features that the free version does not offer such as Bitwarden’s authenticator (TOTP), SSO integration, priority support, unlimited users, and more – depending on the pricing plan. Which you can see the costs for below.

How much does a Bitwarden subscription cost? (Bitwarden pricing plans)

  • Premium and Families: $10 or 40 per year billed annually
  • Teams and Enterprise: $3 or 5 per month, per user
Bitwarden on all devices | Bitwarden Business Model | How Does Bitwarden Make Money | How Does Bitwarden Work
Source: Bitwarden

Note: Bitwarden is vague with how many users they have and only refers to it as “millions of users” when cited.

Bitwarden funding, net worth, and valuation

According to Bitwarden’s Crunchbase profile, Bitwarden has raised $100 million over 2 rounds.

Bitwarden profit and revenue

Bitwarden has not released any official reports in regard to company earnings.

Note: Because Bitwarden is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Bitwarden business and revenue model?

Bitwarden makes money through a few revenue models that they combine within their company, they are:

  • Freemium (upselling) business model
  • Subscription business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model

Bitwarden subsidiaries, acquisitions, and exits

To date, Bitwarden has not made any acquisitions, investments, or exits.