- Improbable made £11 million profit in 2023, its first year of profitability
- The firm moved to a metaverse focus in 2022 and is looking next to the power of AI
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UK metaverse outfit Improbable turned a profit for the first time in 2023, coming in £11 million in the green.
The tech company has spent over a decade investing in high-performance distributed systems and shifted its focus to the metaverse in early 2022, which caused an increase in revenues that has continued throughout 2023.
In fact, revenue rose by 37% last year, excluding one-time items, to £66 million. This helped to fuel the firm’s £11 million profit, as revealed in its recent earnings report.
Driving ahead – now in Web3!
Improbable’s most (and only) profitable year yet was also driven by “successful exits of its initial ventures”, which included the £76.5 million sale of The Multiplayer Group to Keywords Studios and Improbable Defence’s sale to NOIA Capital.
2023 also saw the launch of Improbable’s Venture Builder, a model designed to pursue new investment opportunities.
“A decade ago, we embarked on the challenging yet immensely rewarding journey of focusing on distributed systems for virtual worlds. Over this period, we have honed our expertise in bringing complex technology products to market, seeded and grown businesses, and developed proprietary technology with significant barriers to entry,” said Improbable founder and CEO Herman Narula.
“Two years ago, we doubled down on our commitment to the metaverse. In 2023, we recorded revenues of £66 million and achieved a total profit of £11 million, driven by growth, cost discipline, and divestment of high-value assets. We’ve uniquely demonstrated the ability to pursue distinct, real businesses simultaneously.
“Venture building has proven to be the optimal model for both Improbable and the metaverse, as experimenting with various use cases is key to achieving adoption.”
The future is artificial
Improbable’s technologies across video games, blockchain, the metaverse and more have been utilised in “dozens” of commercial applications, and a decade of experience has paved the way towards developing other emerging technologies like AI – the latest hot topic of the tech and games development worlds.
“We believe that there are significant unaddressed opportunities in the AI, Web3 and metaverse sectors. We aim to identify founders that we can help accelerate by unlocking the capital they need, and providing a foundation for them to operate on,” added Improbable COO Peter Lipka.
“Our goal is for our venture builder model to be the best place to start a business in these sectors.”
