Improbable Reports First-Ever Profitability

Improbable, a tech firm, has announced its first-ever full-year profit, with a recorded £11 million in 2023. This news was shared alongside the company's filing to Companies House, which also revealed a 37% year-over-year revenue increase to £66 million and a cash position of £185 million. Since its inception in 2012, Improbable initially focused on creating large-scale simulation technologies for video games. However, in 2021, the company shifted its focus towards metaverse technologies, with some tools still being utilized for games and virtual worlds. By the end of last year, Improbable had transitioned to a 'venture builder' model, aiming to create startups that leverage its technology, targeting the metaverse, AI, and blockchain sectors. Herman Narula, founder and CEO, reflected on the company's journey, stating, 'A decade ago, we embarked on a challenging yet rewarding path, focusing on distributed systems for virtual worlds. Over time, we have refined our expertise in bringing complex technology products to market, seeded and grown businesses, and developed proprietary technology with significant barriers to entry.' Narula continued, 'Two years ago, we reaffirmed our commitment to the metaverse. In 2023, we achieved £66 million in revenue and £11 million in total profit, driven by growth, cost discipline, and the divestment of high-value assets. We have uniquely demonstrated the ability to pursue distinct, real businesses simultaneously.' Having initially targeted game development, Improbable has sold off all its games businesses in recent years. Notable sales include Inflexion, the developer of Nightingale, to Tencent in 2022, and Midwinter Entertainment, the creator of Scavengers, to Behaviour Interactive. More recently, in December 2023, Keywords acquired The Multiplayer Guys for £76.5 million. Improbable's technology has impressed investors, securing hundreds of millions of dollars in funding over the years, including a $500 million investment from Softbank in 2017.