top | item 21796793

JetBrains: $270M revenue, 405K paying users, $0 raised

1168 points| matt2000 | 6 years ago |twitter.com | reply

662 comments

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[+] kevindong|6 years ago|reply
I'm a big fan of the way JetBrains sells their licenses. Like a lot of software companies nowadays, they only sell licenses on a subscription basis. But with a very customer-friendly clause of where if you pay for a subscription for 12 months you get a perpetual license for the latest version of the product when you initially subscribed. And then after paying for any particular version of a product for 12 months, you also get a perpetual license for that particular version and so on and so forth.

Their FAQ page explains it a lot better than I can: https://sales.jetbrains.com/hc/en-gb/articles/207240845-What...

[+] thijsvandien|6 years ago|reply
True; that's the only subscription model I find acceptable for software that hardly changes in meaningful ways. For example, I refuse to upgrade Git Tower to version 3 as a protest against fournova's new licensing. Up to that point, I was a loyal customer and product advocate, basically buying every upgrade anyway, but by my own choice. Instead, I'll be on version 2 "forever", despite all its flaws. It was even worse for Windows users, who bought licenses (on my advice, sometimes...) for a thing that realistically speaking never came out of beta. To have a usable product to begin with, they suddenly needed to pay for a subscription. There was zero response to my email explaining this, so there's that. Now I'm keeping my eyes open for alternatives.
[+] lol768|6 years ago|reply
>But with a very customer-friendly clause of where if you pay for a subscription for 12 months you get a perpetual license for the latest version of the product when you initially subscribed. And then after paying for any particular version of a product for 12 months, you also get a perpetual license for that particular version and so on and so forth

This came about due to a decent amount of consumer backlash, if I recall correctly. They used to sell standalone perpetual licenses which included a period of updates.

[+] mthoms|6 years ago|reply
This is incorrect. Lots of people believe this but it just isn't true.

When your one-year subscription expires you actually have a perpetual license for the first version that was available when you signed up. NOT for the last one available when the contract ended.

In other words, when your one year subscription is up, you have to downgrade to a one year-old (possibly buggy) version.

For more mature toolchains like C or Java, this seems reasonable. For ones that undergo massive updates each version (WebStorm, AppCode) it's a non-starter.

EDIT: on second read, this may have been what the parent poster was trying to say. I'm leaving this comment as-is though because there seems to be a TON of confusion about this point.

[+] NeedMoreTea|6 years ago|reply
I'm amazed you think that way. It's a huge step down, and incredibly customer hostile. I stopped giving JetBrains money when they switched. If there's no perpetual licence, I'm not buying.

In the old world, you bought the latest version, got upgrades for a year - sometimes more, then got a discount on upgrading come a newer version. At any time you stopped paying you kept the latest software, in sync with everyone else. You'd slowly move out of step.

In JetBrain's fabulous con you pay a sub for the latest, and if you decide to stop paying - almost certainly having paid markedly more during the duration of your sub than under the old model - you get shunted to an older version, instantly putting you at least a year out of step with everyone else.

[+] sytelus|6 years ago|reply
This is a terrible terrible business model despite good intentions. Let me explain... Vast majority of developers who can pay are living in corporate world where you need to approve expenses each time charge is made. Subscription model is especially bad in that world because PO approvals for subscriptions are usually very hard, at least requiring additional justifications + process barriers. Most folks would just rather not do it or find alternatives. I've seen this first hand even when folks are very fond of product.

A far better licencing model is to have one time charge and free upgrades for a year followed by nagging that can be turned off. This would have exact same effect but much easier to have purchase orders pass throughs in big company rule books.

JetBrains have far more potential than $270M. One of the easiest thing they can do is to allow users in same companies to form user groups on their website. They can then approach those companies to buy site licenses with list of all these supportive users at those companies. They can then evangelize to users within same companies who are not yet using their products. This would make sure their subscription churn is lowered due to individual developers.

[+] kevingadd|6 years ago|reply
I understand the business reason for the licensing model so I don't really hold it against them, but after a couple years of 'Oh, you want fixes for these bugs we introduced recently? You'll have to buy another 12 months' where they constantly kept breaking new things when landing important fixes, I got fed up with the treadmill and just stopped using their products (in my case, ReSharper and dotTrace). I'd get problems like "having ReSharper for C# installed breaks VC++ compiles" (yes, really) and very often they'd just close the bugs outright or tell me the fix was only in the upcoming paid version with its own new bugs.

I feel like this is the downside to the subscription license model - if you want to use the product at all you have to keep paying unless the version you've currently got is somehow perfect. And in the case of JetBrains products I've used, it is not. I wish companies like this offered something like an LTS branch where I could pay (subscription even!) for a version that just actually works instead of constantly having to put up with new features/bugs just to get fixes for workflow issues.

[+] ghaff|6 years ago|reply
Honestly, I don't really have a problem with subscriptions generally if it's a product that I use regularly. (Modulo "reasonable" pricing of course.) Where I have an issue is when I need a product I rarely use any longer to open an existing file or do some once in a blue moon task.

At some point, software stops working with OS upgrades etc. anyway and I can deal with that. But I don't want to pay a subscription for something I use a couple times of year and don't need the latest version of.

[+] SOLAR_FIELDS|6 years ago|reply
If I remember correctly when they first announced they were moving to a subscription based model a few years ago years ago there was a backlash from customers and they listened to customer complaints and modified the model to be what it is today. Another plus to them in my book for doing that.
[+] meraku|6 years ago|reply
Same here. I wish everyone company with a subscription based licensing model did it this way. It should be noted though, when Jetbrains initially decided to move to this type of licensing, it was a bit different and they got a lot of backlash from existing users (including myself), but credit to them for listening and amending it to something better for customers.

I've been a happy customer and Resharper user for many years and it makes my life much better, so it's great to see the company doing well.

[+] ljm|6 years ago|reply
Totally agree. I thought Adobe's offer would be just as good until I cancelled early and got bit in the arse. I basically paid more money to cancel than what I would have paid if I left the sub open, and of course I lost access once I did cancel. Total asshole design there.

I go back to JetBrains and now I basically have to use their IDE because my company does, and it's not very easy to get the same kind of experience with Java with Vim or Emacs.

I'm using CLion to help me learn C++ because it knows C++ better than I do (and on a Mac I'm not using Xcode for writing C++, only building it). For £10-£20 a month, that is discounted every 12 months, with full ownership of the last version you had... it's great. They seem to handle it a lot better than Sketch as well, who will force you to find the download page for old versions. IntelliJ just seems to give you what your license allows.

I'd still go back to emacs in a pinch but I'm not proficient enough with C++ or Java and those ecosystems to know how to set my environment up.

JetBrains seem to have a pretty fair and solid strategy and it must be doing well enough for them to expand their IDE-base so far.

[+] albertshin|6 years ago|reply
I'm curious about the counterfactual here. If they had a VC on their board, they may have been "gently guided" towards a pure subscription model since SaaS valuations are much higher.

But, it sounds like a pure switch to SaaS would have alienated customers and perhaps would have forced more users to seek alternatives, and we might not have seen the business as this scale today.

Wonder if this was the optimal move at the time.

[+] mroche|6 years ago|reply
As others have mentioned, the fallback license is for the point releases you have paid 12 months for, not the most recent release during your subscription (which is what your comment suggests).

It’s also worth noting that the requirement is 12 consecutive months. You can’t have any breaks so you need to be actively subscribed to take advantage of this.

It’s not the best solution (I am a fan of pay for a year (prepaid or monthly) and you get 12 months of updates where you keep all of them), but it’s a good compromise in the era of SaaS. And a compromise I’m willing to make for their IDEs.

[+] monksy|6 years ago|reply
That didn't happen by what they tried to push. This happened because there was lots of developers threatening to walk over a pure subscription model.
[+] teddyuk|6 years ago|reply
The thing I like is that their stuff makes it easier to develop and is reasonably priced.

If your company won’t pay for it you can buy a personal subscription cheaply.

[+] bad_user|6 years ago|reply
Also the core of their main product, IntelliJ IDEA, is open source. And it's actually pretty usable for Java and Scala development for example, which is my interest in it.

The Ultimate version comes with bells and whistles, but truth be told I'm only paying for it because of how happy I am with it.

[+] memn0nis|6 years ago|reply
Interesting... the problem with this model is that investors / the market value SaaS revenue way higher than revenue from perpetual licenses, for a variety of reasons. Although I guess that doesn't matter when you're not raising or public :)
[+] baroffoos|6 years ago|reply
I was using their RubyMine editor for a few years and really liked it but then I switched jobs and ended up using vscodium and found it did basically everything I needed but was free.
[+] jariel|6 years ago|reply
I think Sketch does this and I agree, it's the way it should be.
[+] lordleft|6 years ago|reply
That's an absolutely brilliant pricing model. I love it.
[+] hn_throwaway_99|6 years ago|reply
I agree with many of the other posters: JetBrains has succeeded because their products are generally awesome, and I am a happy personal subscriber. People should especially remember what the Java IDE landscape looked like when they first came out with IntelliJ: using IntelliJ after using NetBeans or Eclipse was like using Google for the first time after being familiar with AltaVista - it was just a night and day better product.

Still, I wonder if they could have been successful without funding if they were a US or Western European company. Especially in the early days, I'm sure the much lower salaries in Prague allowed them to be more competitive with a lower burn rate. My point is I think their VC-less success would have been much more difficult in a place with higher salaries and cost-of-living.

[+] Zetoke|6 years ago|reply
>I'm sure the much lower salaries in Prague allowed them to be more competitive with a lower burn rate

It's a russian company with the most people (especially engineers) in St. Petersburg. It's only technically registered in Prague. They have only 50 people there. And around a thousand people distributed across Russia (St. Petersburg, Moscow, Novosibirsk), Munich, Boston and brand new office in Amsterdam.

[+] goatherders|6 years ago|reply
Which is a pretty strong vote for building your company somewhere with lower salaries and lower cost of living.

There are a LOT of great engineers in places other than SV, Austin, Boston, etc.

[+] ternaryoperator|6 years ago|reply
>remember what the Java IDE landscape looked like when they first came out with IntelliJ: using IntelliJ after using NetBeans or Eclipse was like using Google for the first time after being familiar with AltaVista

You're skipping over several commercial Java IDEs available when IntelliJ first came out: Most notably, Borland JBuilder, which was an excellent product. Symantec had Visual Cafe as well, which was not really in the same league as JBuilder, but still had some magic.

IMHO, JetBrains succeeded by having a product as good as JBuilder (and revving it so it got better quickly) and not cratering as a company the way Borland did.

[+] hugi|6 years ago|reply
I'm an outsider fan. I've attempted to use IntelliJ on multiple occasions, but it just can't really compete with Eclipse as far as my requirements are concerned. But the competition from and innovation in IntelliJ has no doubt made Eclipse better (and modern Eclipse is kind of awesome and just keeps getting better).
[+] Rapzid|6 years ago|reply
You might be on to something but their product philosophy just seems to be.. different. Compare TeamCity to Bamboo; it's in a different league. Maybe that does come down to the extra human resources they can throw at stuff.

Their products are/were ambitious in an MVP environment.

[+] enitihas|6 years ago|reply
Jetbrains products are awesome though. I used to use a heavily customized vim which was a pretty good setup, but the things a jetbrains ide can do are just much better than what my custom setup could do. I pay for a personal subscription and couldn't be happier. I will recommend everyone to atleast give their products a try. They have a free trial period.
[+] mmastrac|6 years ago|reply
Every time I see these guys pop up, I'm reminded of the time a decade ago where they literally copied my .NET profiler (nprof) into their "brand new" .NET profiling product at the time and just shipped it.

No apologies, no compensation for building a commercial product on something I had spent a decent amount of time on. Very disappointing of them.

[+] mshafirov|6 years ago|reply
JetBrains CEO here

At the time, we had a student working on the project and they used a couple of classes from NProf code for loading the profiler under IIS. This was done incorrectly as it was not in compliance with the GPL license. This was brought to our attention on March 18th 2005, and after careful examination we responded on March 21st 2005, following up by removing said code and rewriting it. We indicated this resolution to you and you were satisfied and showed support for JetBrains. We do have reference to the aforementioned interchange between yourself and JetBrains. Should you require a copy, please let us know. We'd like to apologise for this mishap which was a complete oversight, and was remedied as soon as it was brought to our attention.

Feel free to reach me out if you have any further questions

[+] sah2ed|6 years ago|reply
> No apologies, no compensation for building a commercial product on something I had spent a decent amount of time on.

I think the important question here is did they do this in violation of the open source license you had adopted as at the time the alleged infraction took place?

[+] fabiensanglard|6 years ago|reply
What do you claim they copied? The GUI, the features?
[+] kevingadd|6 years ago|reply
Pretty standard in the .NET ecosystem, unfortunately. I had a similar experience with multiple tools vendors repackaging my stuff for free as the foundation of their product. The only time I ever got a sponsorship offer or even bug fix contributions was a while after I had stopped doing their work for them for free.
[+] geophile|6 years ago|reply
JetBrains is completely awesome, in all ways.

- The best IDEs by far. There is nothing remotely close. I have been a dedicated Emacs user for over 30 years. But there is so much Intellij does that just isn't available in Emacs, that I started moving more of my dev work to IDE, maybe 10 years ago. I still escape to Emacs sometimes (from the IDE), but if I'm coding in Java, Python, or sometimes C/C++, JetBrains tools are my main environment.

- The products keep getting better with every release.

- Excellent support. They are always fast and address my exact problem.

- Reasonable licensing.

- The free versions of their products are usable. I got by on free versions for years.

I am thankful that they remain independent. I fear than an acquisition would dilute their focus and kill their many-years long streak of stellar accomplishment.

[+] cies|6 years ago|reply
Recently they've create the (arguably) best language on the JVM thus far: Kotlin. Now Google supports it for Android.

Just to add one to that list of awesomeness.

[+] rvz|6 years ago|reply
I'm absolutely pleased with these numbers. This gives confidence that JetBrains has products that are used by a market of paying customers who are developers from companies big and small. Not even raising capital is impressive since these days, we have news of startups / companies with zero profit raising cash every 6 months and on each funding round, they forfeit control of their companies.

With these numbers, this confirms that 'developers' are the new customers.

[+] foobarbecue|6 years ago|reply
I love IntelliJ but I am constantly switching between PyCharm and WebStorm, which is quite annoying since I end up doing python and javascript in both. I wish they one modular product instead of many, many slightly different products.

Edit: I'm learning in the comments below that IntelliJ IDEA Ultimate gives you the capabilities of the other products all together. This sounds great! I'm going to try it.

[+] Waterluvian|6 years ago|reply
I badly want to use intellij for Rust and other languages. But the issue I smash up against is that years of Vscode + my customizations has made using any other editor terribly clunky.

I can spend hours customizing the controls and UI but I still feel like someone handed me the keys to some old car made in a country that doesn't exist anymore.

This in part revealed to me the cost associated with all the editor customizations I make. Default settings are nice that way.

[+] michaelfeathers|6 years ago|reply
The thing I love about JetBrains is their ethic.

- Started by making refactoring plugins for IDEs. Became irritated by those IDEs. Wrote their own IDE.

- Supported various programming languages. Became irritated by those languages. Made their own programming language.

[+] judge2020|6 years ago|reply
If you're wondering, the "6M users / 405k customers" comes from the Community editions of PyCharm and IntellJ (maybe also Android Studio) and their free-for-students offer[0] ( which I would imagine is a big part of getting companies who hire college grads to license JB products).

0: https://www.jetbrains.com/student/

[+] donarb|6 years ago|reply
They are a sponsor of PyCon and their booth is always a hub of activity. Last year they held mini tutorial sessions with prominent Python developers who demonstrated PyCharm with various programming examples (like Flask, virtual environments and Jupyter notebooks).

I was able to talk directly with the PyCharm developers to figure out a problem I was having when starting new projects. Their developers are friendly and very knowledgeable.

I have no hesitation renewing my PyCharm subscription knowing that these guys are building a great product that makes my work easier.

[+] mythz|6 years ago|reply
Happy to see them succeed as a successful bootstrapped company who are operating on a sustainable business model that allows them to continue iterating and improving their already best-of-class products better with each release.

Jet Brains offers the best value for any commercial (i.e. non-free) dev products I've ever used. Currently an active user of Rider, ReSharper, dotPeek, dotTrace, dotMemory, IntelliJ, Android Studio, DataGrip, WebStorm and TeamCity [1] - all world class tools available at a comically cheap price with their "All Products Pack" - even cheaper with their loyalty discount.

I'm normally not fond of subscription-based products but as their product suite offers so much value I count myself as a happy multi-year subscriber that in all likelihood will remain one until I retire from programming.

[1] TeamCity has separate licensing, used to pay for but now comfortably fit within their generous (100 projects / 3 build agents) free-tier limits

[+] ordx|6 years ago|reply
They are registered in Prague, but it's mostly Russian company. Depending on your line of business, this may or may not be an issue.
[+] eman_resu|6 years ago|reply
282 comments and I'll be the first person to mention AppCode. This makes me wonder whether AppCode is really a niche product for JetBrains compared to their other wildly successful IDEs. AppCode used to be hands down best IDE for iOS development in times of Objective-C, but after introduction of Swift, it's downhill in terms of quality. One of projects I'm working on doesn't even compile (multiple frameworks and app in monolith codebase). 2019.3 was supposed to improve symbol caching, building module maps and code assistance and it makes little difference for me - I'm still getting freezes for multiple seconds and code completion occasionally becomes available with such delay that I'm done typing what could have been autocompleted for me. In 2 months my subscription expires and I'm really sad to give up on this product.

Sorry for venting dear HN community, but it's not all roses in JetBrains land.

[+] _bxg1|6 years ago|reply
I used Eclipse at a Java shop for about a year, and then they bought me an IntelliJ license.

It was night and day. IntelliJ was a dream. And not just because of features; it was smoother and it had an Apple level of cohesive, thoughtful user design.

[+] pkos98|6 years ago|reply
Their company philosophy is "everybody codes", which results in much less management (and possibly more freedom for the employee :). They have an office in Munich.
[+] croh|6 years ago|reply
I am a big fan of Intellij. But the single most feature I hate about their products is keyboard shortcuts. If they follow standard unix shortcuts along with standard browser shortcuts, it will be more productive.
[+] eitland|6 years ago|reply
I really like IntelliJ and recommend everyone try them even if my favorites are NetBeans, Eclipse and VS Code.

This seems to be just some weird preference that my brain has and since Jetbrains is such a nice company and has a sustainable funding model I'm happy to send people their way

[+] stevehiehn|6 years ago|reply
Nice, Intellij (avec GoPlugin) is the only dev tool I pay for out of pocket.

The vast majority of the company I'm at uses VSCode (for mostly GoLang & Typescript). So I don't want to make the case to have them pay for it. But 40hrs/w of my existance is spent in a IDE/editor and IMO its totally worth it to pay for the one I feel most productive with.

[+] bdcravens|6 years ago|reply
Haven't used their IDEs for some time, but I really like DataGrip. While someone always knows of an open source alternative, it's the best full-featured cross-database tool I've found.